BLACKPOOL Council has welcomed the latest proposals for an overhaul of gaming laws - despite warnings that major investors could take their money elsewhere.

The Government will limit slot machine numbers and give councils the power to veto new casinos in the latest draft of its long-awaited gambling bill.

It will also ask a cross-party committee of MPs to meet again and discuss how regional planning bodies can direct where large scale 'resort' casinos are built.

Council leader, Cllr Roy Fisher, said: "There is now every prospect that the much needed reform of gambling legislation can be on the statute book by the Spring of 2005.

"This will give the opportunity to legislate for a distinct leisure and entertainment attraction - the resort casino.

"Blackpool Borough Council believes that resort casinos represent an opportunity to provide a unique new tool for regeneration.

"The council believes that the Government and Joint Select Committee have gone a long way to avoid the spread of large numbers of small and medium sized casinos with their associated social problems.

"However, if casinos of regional significance are located in urban towns and cities, which do not provide a clear destination experience, then doorstep gambling and social problems could still be an issue for the poorer parts of our industrial towns and cities."

But one of the USA's biggest casino operators, Las Vegas Sands, warned that restricting slot machine numbers could reduce the ammount it is prepared to invest in the UK.

Company president, Bill Weidner, told Monday's Financial Times: "It would certainly jeopardise our investment. A slot limit would affect our investment and would hinder regeneration efforts.

And shares in leading UK casino firms, including Stanley Casinos and Rank Group, owner of Grosvenor Casinos, fell after the Government announcement.

The Government will also ban fruit machines in non-licensed premi

A bid to build a new 2,500 capacity conference venue and casino at Blackpool's Hilton Hotel looks set to fall at the first hurdle.

Councillors were due to meet last night to discuss objections to the borough's draft local plan, which sets out acceptable developments for the period until 2016.

The objections include a request from The Hilton Group to ease restrictions on the size of conference facilities at hotels outside the centre of the resort.

The council argues that the development would not be 'ancillary' to the hotel, and would compete with a proposed conference venue on the former central station site.

A report to members of the council's executive said: "The development of a 2,500 delegate facility would be in direct competition with, rather than complementary to, the proposed national conferencing facility, the provision of which will require significant public sector funding."

The Hilton Group's bid to have their site designated as a possible venue for a resort casino as part of a new 'Summer Palace' development is also expected to be knocked back.

The proposals, along with other aspects of the local plan, are set to go before a public inquiry in November.