A computer-generated image of the hotel's revamped lobby

The casino, to be built at the St Pierre Park Hotel in Guernsey, will form part of a �25m redevelopment of the hotel.

The States granted hotel owner CI Traders a concession to build a casino in a vote which was 25 votes to 19 in favour.

Tom Scott, CI Traders executive chairman, said: "I'm delighted that CI Traders has been successful in obtaining the casino licence.

"I believe this will attract additional conference and weekend business and tourist traffic, benefiting the Island of Guernsey as a whole."

The casino is expected to open in May 2005.

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