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Manchester has been chosen as the surprise location of Britain's first Las Vegas-style super-casino.The decision is a blow for Blackpool and London's former Millennium Dome, which were the bookmakers' favourites.
The licence will allow Manchester to build a venue for up to 1,250 unlimited-jackpot gaming machines.
Meanwhile, licences were granted for new 'large' casinos to Great Yarmouth, Hull, Newham, Middlesbrough, Solihull, Milton Keynes, Leeds and Southampton.
The Casino Advisory Panel also granted licences for 'small' casinos to Bath and North East Somerset, Dumfries and Galloway, East Lindsey, Luton, Scarborough, Swansea, Torbay and Wolverhampton.
The super-casino would be based at Sportcity in the Beswick area, close to the City of Manchester Stadium in the east of the city.
The proposed site will also contain an entertainment complex with a range of facilities such as a multi-purpose arena, a swimming pool, an urban sports venue, restaurants, bars, a nightclub and a hotel.
MPs have final say
Culture Secretary Tessa Jowell said MPs would be given the final say - via a Commons vote - on the proposals.
Manchester was a 16-1 outsider at the bookmakers to be selected as a test-bed for the UK's first regional 'resort' casino.
There has been speculation that more super-casino licences might be awarded but Ms Jowell told MPs that there would definitely be no more granted during this Parliament.
Any further casinos would have to be approved by parliament and would not be considered until there had been a 'proper evaluation over time' of the social and economic effects of the 17 new casinos.
She said: 'Las Vegas is not coming to Great Britain... British casinos will be subject to new controls, which will be the strictest in the world.'
Stephen Crow, chairman of the independent Casino Advisory Panel, said Manchester had been chosen because of its 'very thorough consultation' with the local community and 'the way it dealt with questions of problem gambling'.
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'Manchester has a catchment area for a casino second only to that of London, and it is an area in need of regeneration at least as much as any of the others we observed,' he added.
Professor Crow told BBC News 24 the panel's decision was 'watertight' if it came to a legal challenge from any losing bidder.
Councillor Richard Leese, leader of Manchester City Council, said: 'This is fantastic news for Manchester, and the region.
'Smack in the face'
'Manchester has an unrivalled track record in the delivery of major regeneration schemes so we are confident we have the expertise to deliver a world-class venue, creating thousands of new jobs for local people.'
However, Doug Garrett, chief executive of ReBlackpool, the urban regeneration company which worked on the town's bid, called the decision a 'smack in the face'.
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'It is tragic. It is very difficult to see how they have drawn their conclusions,' he added.
Previous assessments had put Manchester at the bottom of the seven bidders, while all local government bodies and regeneration agencies in the region had backed Blackpool, Mr Garrett said.
'It is a very strange decision. We need to look into the rationale. Manchester has come from nowhere. It was a real, real dark horse,' he added.
A spokesman for Dome bidders AEG said: 'We are very disappointed that the London Borough of Greenwich has not been recommended as the location for the first regional casino.
'We are taking time to examine the findings in full and considering our position.'
Entertainment complex
Manchester's bid organisers said it would regenerate a poor area in the east of the city, promising a £265m investment and 2,700 direct and indirect jobs.
The government should focus on attracting real jobs and wealth, instead of granting licenses to print money |
Conservative leader David Cameron said: 'It was the right decision that it went to the north of England and actually it's going to have a regeneration impact.
'I've nothing against Greenwich at all, but, after all, London did get the Olympics and so I think that either Manchester or Blackpool... probably made more sense.'
The government's plans do not now include a super-casino |
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The huge Las Vegas-style super-casino planned for Manchester is to be scrapped, the government has confirmed.Manchester had won the bid to develop a gambling resort but Gordon Brown effectively killed off the plans soon after taking over as prime minister.
But Culture Secretary Andy Burnham said that 16 smaller casinos will go ahead in towns including Leeds, Milton Keynes, Swansea and Stranraer.
Manchester City Council may appeal against the change of plans.
'Important differences'
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Announcing the U-turn, Mr Burnham told MPs there was 'no consensus' on whether to build a super-casino and said there had been concerns over potential negative impact.
He said there were 'important differences' between a super-casino - with 1,250 unlimited stake and jackpot machines - and the 16 approved casinos, which are still considerably larger than current casinos.
Mr Burnham said that the UK would have the 'toughest regulatory regime for gambling in the world'.
He said he would introduce a restriction requiring casinos to close their doors for at least six hours a day, a ban on credit card use and outlawing of free drink promotions.
He also promised a statutory levy on casino operators to fund treatment and advice for gambling addiction unless the industry delivers a 'substantial increase in contributions' to the current voluntary scheme.
In January last year, east Manchester was the surprise winner - ahead of Blackpool - of a contest to host a huge the super-casino.
But the prime minister announced a review of the decision in July, saying super-casinos were not the best way to regenerate run-down areas.
'Social disorder'
In a report published on Tuesday, the government said the benefits of a large 'regional casino' could be reaped through 'alternative, but equally effective projects'.
It has looked at alternatives, such as museums, theatres, retail, commercial and housing developments, and says once potential economic and social costs of a super casino are factored in, there is little difference in the benefits.
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It suggested high-paying casino jobs were likely to attract people from outside the area, 'which would mean that local people do not necessarily benefit, but would still bear the brunt of any risks faced'.
Permission is to be given for smaller casinos in the Bath area; Stranraer in south-west Scotland; Scarborough; Wolverhampton; Swansea; Luton; Torbay in Devon; and East Lindsey in Lincolnshire, an area which contains resorts including Skegness.
Mr Brown's spokesman said: 'As we said in July, there is a huge difference in scale in terms of gambling opportunities in a super-casino and smaller casinos.
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'What we said was we would work up alternative regeneration packages which did not rely on a super-casino.'
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Manchester City Council leader Sir Richard Leese said he was disappointed and the announcement would be 'scrutinised in detail'. He did not rule out taking legal action.
He said a super-casino would have brought 3,500 new jobs and money to east Manchester and said the city needed a clear commitment that any alternative would bring 'the greatest possible benefits'.
HAVE YOUR SAYEast Manchester is in desperate need of investment to break a cycle of decline
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Shadow culture secretary Jeremy Hunt said: 'After seven months of dithering, the government's gambling policy is a mess.
'When will the government understand this is not about the size of the casino but the underlying protections put in place to prevent and treat a social disorder that breaks up families?'
Liberal Democrat culture spokesman Don Foster said the government's gambling policy was 'muddled and confused' with the original local authority bids for the super-casino costing more than £1m of taxpayers' money.