Gordon Brown has killed off the chances of a super casino opening in Britain, in his most explicit break from the Blair era to date.

Despite four years of intense lobbying by casino organisations, an unprecedented competition between councils and a huge parliamentary effort, the Prime Minister today signalled that vast Las Vegas-style gambling dens will not come to Britain.

Although Mr Brown stopped short of declaring to the Commons that no regional casinos would be built today, The Times understands from government sources that the plan for regional casinos is "dead in the water". Plans for 16 smaller casinos may return to Parliament over the next few months.

The decision immediately set off a row with Manchester, the city which was given the provisional go-ahead to build one, and risked the new Prime Minister becoming embroiled in an argument with some of his political allies representing a key Labour heartland.

Graham Stringer, the MP for Manchester Blackley, said Mr Brown's statement that regeneration could be more effective than building a super-casino was "quite frankly insulting" to the city council, as regeneration required more Government investment.

He said that he would join with his Manchester colleagues in demanding a meeting with the Prime Minister in order to clarify the situation.

Mr Brown previously indicated his lack of enthusiasm for super-casinos, having imposed a 50 per cent tax on any large gambling venues at the last election.

By contrast, Tony Blair repeatedly indicated that he was happy for unlimited numbers of super-casinos restricted only by the market because he believed they brought regeneration benefits to run down areas.

Today the Prime Minister told Andy Reed, the Labour MP for Loughborough, that ministers would have a period of "reflection" on the future of the casino plans over the summer.

The policy U-turn was met with shock. Mr Stringer said: "I’m surprised. I would expect the Prime Minister to be defending the decisions of the House of Commons. The only reason the supercasino hasn’t gone ahead is because the House of Lords rejected it by a small majority.

"I think the Prime Minister should be saying that the unelected chamber can’t stop this happening, rather than asking for a pretty fundamental review of whether or not the casino happens."

Speaking to BBC Radio 4's The World at One programme, the MP added: "To regenerate areas you have to bid for investment or the Government has to put investment in. Unless the Government is going to replace that level of investment, which would create at least 1,000 jobs, then nothing is going to happen in one of the most deprived parts of this country."

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