A FULL-SCALE retreat on gambling reforms was sounded last night as ministers promised that they will strictly limit the number of Las Vegas-style casinos opening in Britain.

Tessa Jowell, the Culture Secretary, told a meeting of the Parliamentary Labour Party that amendments to the Gambling Bill will ensure that super casinos are introduced only as “pilot schemes”.

She added that a package of concessions, designed to allay fears that the Bill will fuel gambling addiction, would also guarantee that there would be no proliferation of medium-sized high street casinos.

The climbdown is expected to be confirmed today by Richard Caborn, the Culture Minister, when he tells the Commons committee examining the Bill that just eight super casinos will be built under the pilot scheme.

Previously, the Government had said that the regulatory system and the market should ensure that the number was limited to between 20 and 40.

But the amendments would mean that a second wave of developments cannot proceed without a resolution being approved by both Houses of Parliament.

The proposed Gambling Commission will undertake impact assessments on the intitial eight super casinos. Officials said last night that any evidence of an increase in problem gambling — or a failure to realise expected economic regeneration benefits — would “count against future developments”.

Ms Jowell said last night that the changes were an “example of grown-up politics” in which the Government showed that it had listened to concerns from MPs and religious groups opposed to the Bill.

Details of the amendments are unlikely to be published for several weeks while questions are resolved over whether a restriction on the new casinos would breach European competition rules.

Ministers hope to avoid any legal challenge by making it clear they are not introducing a statutory cap on such developments because the limits only apply to a pilot scheme.

But they are also understood to want clauses inserted into the Bill which insist that super casinos are built in seaside resorts or areas in need of economic regeneration. At the same time the Government is expected to strengthen both the planning and regulatory system in ways which will prevent a big expansion of such operations.

Many of the main American casino operators have already signalled their dismay at the proposed changes. At least one such company is said to have written to Downing Street saying that it is no longer interested in making any investment in the UK. Another has abandoned plans to launch a major newspaper advertising campaign extolling the benefits of the super casinos.

Explore UK News

• Crime News

• Education News

• Health News

• Scotland News

Times Recommends

• Margot Fonteyn: In her footsteps
• Forget beautiful people, let's have wonky Brits
• Fundamentalist brew: faith and power