The bill could pave the way for Las Vegas-style resorts

Culture, Media and Sport Secretary Tessa Jowell has released details of a draft gambling bill which aims to deregulate the �40bn industry.

Mrs Jowell said the new law would keep the gambling industry free of crime and protect the young and vulnerable.

A single regulator, the Gambling Commission, will be created and given strong enforcement powers.

"Our gambling laws date back to the 1960s," she said.

"Gambling is now a diverse, vibrant and innovative industry and a popular leisure activity enjoyed in many forms by millions of people. The law needs to reflect that."

Wholesale deregulation

Under the new rules, there will be no restrictions on where casinos can be set up, and membership of a gaming or bingo hall at least 24 hours before playing will no longer be required.

Remote gambling, via the Internet, mobile phones or interactive television, will be licensed and regulated in Britain for the first time.

There will be strict controls on children's access to venues and a fund paid for by the industry will help people with a gambling problem.

Further proposals are yet to come and the government plans wholesale deregulation.

There is a danger that virtually every out-of-town DIY store is being snapped up, it seems, by speculators ready to turn them into edge-of-town casinos Councillor Eddie Collette Blackpool Borough Council

This may include more relaxed rules for casinos on alcohol, opening times jackpot prize limits.

Critics of the bill say the new laws could encourage casinos springing up on every street corner.

But to avoid the creation of lots of smaller gambling halls, ministers have proposed that new casinos be subject to a minimum size.

Opponents also claim the bill underestimates the social impact of the proposed changes.

According to National Economic Research Associates, the number of problem gamblers in the UK could rise to 1 million, a fourfold increase.

"The evidence from Australia and the US suggests that the incidence of problem gambling could increase to as much as 2.5% of the adult population," said NERA's John Dodgson.

Transformation

Councillors in Blackpool, Lancashire, hope to use the new law to transform the seaside town into a world-class resort for hotels and casinos with the aim of creating 30,000 new jobs.

But Blackpool Borough Council deputy leader Eddie Collette would like to see limits on the amount of new casinos allowed in the town.

He said: "There is a danger that virtually every out-of-town DIY store is being snapped up, it seems, by speculators ready to turn them into edge-of-town casinos.

"That's exactly what we don't want in Blackpool.

"It doesn't produce the kind of regeneration effects that can be produced if the legislation is framed correctly."

A committee of MPs will scrutinise the bill and improve the legislation, ensuring a balance is struck between deregulation and protection.

The full bill will be put forward in April 2004 which will then enter Parliament.