Experts believe the prospects for Britain's first Las Vegas-style supercasino have dimmed after the House of Lords rejected the government's plan to liberalise gambling laws.
Senior politicians led by church leaders last night voted down the proposals for a supercasino and 16 other large gambling venues.
Procedure now requires a redrafting of the plans, which have been seven years in the making.
"This setback, combined with the changes to the tax regime announced in the budget last week, significantly reduce the chances of the UK ever having a supercasino," said Investec analyst Matthew Gerrard.
He said the government would likely bring its proposals to parliament after local elections in May but before any leadership change following Prime Minister Tony Blair's anticipated departure in July.
With finance minister Gordon Brown expected to succeed Mr Blair, another former politician who did not wish to be named said the odds of the supercasino being built were dropping.
"Brown has made his feelings about gambling quite clear in the budget so I certainly wouldn't bet on it," he said.
In his budget last week, Mr Brown introduced taxes which will hit the most profitable casinos with rates as high as 50 per cent and are estimated to earn the government around 35 million pounds (€51 million) a year.
Tessa Jowell, the minister in charge of the casino proposals, said the government had no alternative plan if its all-or-nothing approach failed, but she has now said it will revisit the plans after the local elections.
Analysts expect the government to secure backing for the smaller casinos in the next couple of months. One political source said the government may secure approval through a parliamentary panel made up of Labour, Conservatives and Liberal Democrats.
However the government could face uproar from Manchester and Blackpool - the two most likely locations - if it scrapped the plans for a supercasino.
PA