Hilton is eyeing Blackpool for a Vegas style casino, reports say

The group has been in "positive talks" with local government officials in Blackpool, spokesman Alex Pagett said.

However, Hilton will only go ahead with the plans if the government agrees to limit the number of "super casinos" in the UK, he added .

The news comes as the government prepares to debate wide-ranging changes to the UK's gambling laws.

Blackpool lends itself well to what we hope will emerge from the new legislation Alex Pagett, Hilton

Under the proposed shake up, rules limiting the size of casinos and restricting them to city centres will be loosened. Membership laws could also be scrapped.

International casino operators have already earmarked around �5bn to invest in the UK if the reform plans are approved.

'Super-casino' cap

Hilton has said it will only go ahead with its proposals for the Vegas-style venue if the number of huge casinos is capped.

Last week, Prime Minister Tony Blair said the building of so-called "super casinos" would be limited to between 20 and 40 such venues.

However, Mr Pagett said that Hilton did not believe there was enough demand in the UK for such a large number of big casinos - adding that just four or five "at the most" would be enough for the country.

He also said that Blackpool was not the only location the group had been considering.

'Way forward'

"Larger entertainment-based hotels with eating and gaming" facilities are the natural progression for Hilton, tying up its hospitality and gaming arms, Mr Pagett explained.

"Blackpool lends itself well to what we hope will emerge from the new legislation," he added.

Under the plans, which are being "seriously considered", the �200m development would see around 500 jobs created at the site, Mr Pagett added.

Culture Secretary Tessa Jowell, meanwhile, has said she would consider amending the planned changes to the gaming laws after critics argued that deregulation may fuel an increase in gambling addiction.