THE Government has decided that a controversial plan for the State's first casino in Phoenix Park, Dublin, should not proceed.
Yesterday's Cabinet decision follows an examination by Ministers of the report by the Task Force on Casinos. Sources said that the report was "neutral" in terms of a recommendation as to whether the casino should be sanctioned, describing this as a matter of policy for the Government.
The decision casts serious doubt on the controversial £350 million plan to redevelop the Phoenix Park Racecourse, as the developers had made it clear that a major casino was the "financial engine" driving the scheme, which would not go ahead without a licence.
Yesterday the Minister for Trade and Tourism, Mr Kenny, briefed the Cabinet about a proposal from the RDS to operate a national convention centre in its grounds in Ballsbridge, Dublin.
The Government originally sought a report on the viability of a casino with the intention that its profits would be used to fund a national convention centre.
However, when it was indicated that the RDS would operate its convention centre without ongoing government subvention, Ministers decided that it was not necessary to proceed with legislation for casinos.
Last month An Bord Pleanala granted planning permission for the Phoenix Park development - which would also include a national conference centre, a 350 bedroom hotel, a 63,000 seat stadium and an indoor arena - in the face of strenuous opposition from local residents.
It is known that the development company, Sonas Centre Ltd, had an option to acquire the racecourse site from its present owners - Mr Vincent O'Brien, Mr Robert Sangster, Mr John Magnier and Mr Michael Smurfit - for a sum in excess of £8.5 million, subject to planning permission being granted.
Faced with the prospect of having to pay out by the end of this month, it is believed that the developers exerted pressure on the Government to reach a decision on whether to license casino gambling.
Mr Harry Shiels, chairman of the West Dublin Action Group coalition of residents' associations which strongly opposed the Phoenix Park scheme, said that he was "extremely pleased" at the outcome.
"We met John Bruton, Proinsias De Rossa, Ruairi Quinn, Hugh Coveney and other senior politicians", he said. "We also met Mary Harney and Bertie Ahern. But we got no support from Mr Ahern on the issue, and I would be worried that, if Fianna Fail were in power, it may have been a different story."
The decision would appear to eliminate the Phoenix Park Racecourse as a location for the proposed national conference centre.