Shopping, museums and housing are viable alternatives to a supercasino, the Government claimed today. But it freely admits none of these alone would bring the same economic boost as Las Vegas-style gambling. The admission comes in a report compiled for communities minister Hazel Blears after Prime Minister Gordon Brown called for alternative forms of regeneration to be examined for Blackpool and east Manchester.

Manchester officials have said they will consider a legal challenge if a government decision to axe the city’s planned super-casino is confirmed. The city council said it knew nothing of the U-turn by ministers, who are still planning 16 regional casinos. The BBC has learned that the decision is to be announced in a statement to the Commons after the half-term recess.

Calls were today made for the Government to show its hand amid claims Blackpool's long-awaited casino dream was dead and buried. Reports strongly suggest it is only days before Prime Minister Gordon Brown kills off plans the UK's first supercasino for good. It is rumoured letters sent to ministers in Scotland and Wales confirm the Government will press ahead with licences for 16 small casinos and scrap the supercasino.

It seems the time is not right for the government’s plan to launch 16 casinos, as uncertainly over its gambling policy reigns and cash-strapped casinos have other things on their mind. The question of casino policy remains unresolved. Gordon Brown, who axed proposals for a Las Vegas style super-casino shortly after becoming Prime Minister, is poised to unveil plans for 16 smaller “Gambling Palaces”.

Gordon Brown was accused of “shameful irresponsibility” last night as he prepared to give the green light to a wave of huge regional casinos. Although the Prime Minister symbolically axed Britain’s first Las Vegas-style supercasino, it emerged that 16 gambling palaces would still get the go-ahead. Whitehall sources signalled that eight large and eight medium-sized casinos would go ahead. Large casinos...