The Government faces fresh embarrassment over its casino laws as potential bidders for the 16 new licences start to walk away from the process - just as the legal framework is finalised. Casino groups Aspers, Gala, Rank, Stanley Leisure, Ladbrokes and Genting have all significantly cut back - and in some cases abandoned - their plans to make multiple bids for the new-style licences. The Casino Location Order, part of the 2005 Gambling Act, is due to go before the House of Lords in the next few weeks where, if accepted, it will become law.

Star City made a one-off AUD 100,000 donation to the NSW Labor Party in the lead-up to the 2007 election - only months before it was due to begin negotiations with the State Government over its monopoly casino licence. The Daily Telegraph uncovered the payment in the party's latest 2007 election funding declarations submitted to the NSW Electoral Commission.

Gordon Brown left himself open to charges of hypocrisy after it emerged that Labour accepted a donation from an online gambling firm days before he killed off plans for a super casino. Labour received a GBP 100,000 donation from Bet365 Ltd on June 28 - the day after Mr Brown became Prime Minister. The company, founded by Labour donor Peter Coates, also gave a donation of GBP 50,000 in April when Tony Blair was still Prime Minister.

Labour's plans for a gambling revolution are in ruins in the wake of Gordon Brown's dramatic decision to axe plans for Britain's first supercasino. Those councils awarded licences for smaller casinos have been asked if they still want them by Culture Secretary James Purnell. But only four of the 16 say they will definitely go ahead with the plans, the Daily Mail can reveal.