The States has granted a concession to build a casino at St Pierre Park Hotel.

However, but the vote was closer than many anticipated, at 25 votes to 19.

Concern was expressed at the effect the project would have on the local economy, but casino gaming will be seen in Guernsey for the first time in May 2005.

The St Pierre Park Hotel will be closed for nine months from October 2004 to allow the work to be undertaken.

The Tourist Board recommended the States grant St Pierre Park Hotel a licence for a casino in the September billet as part of a redevelopment plan which could cost up to �25m.