One "super casino" will be allowed under new laws

The Conservative demands come after papers about government talks with casino firms about the rules last year.

The Tories say there are "clear discrepancies" between the documents and what ministers told Parliament.

The government denies the claim and says there is no question of diluting money laundering rules.

There is no question of us ever putting the effectiveness of money-laundering directives behind the interests of casino operators Culture department spokesman

The issue surfaced during talks over new gambling laws, which are set to allow the UK's first "super casino".

Casino operators were worried proposed European money-laundering rules would force them to obtain "satisfactory evidence of identity" of any person gambling in a casino.

This could reinstate the "members only" rules the new laws were supposed to abolish, they argued.

Talks papers

The Observer newspaper used freedom of information laws to obtain a briefing note written in May last year by senior culture department official Richard Beston for minister Lord McIntosh.

It outlined preparations for a meeting with Lloyd Nathan, a representative of entertainment giant MGM, explaining his concern about the identity rules.

We need to hear from the prime minister himself that he will not bow to pressure to relax the money-laundering laws Philip Hammond Conservative spokesman

The note said: "We have asked the Treasury to consider revising the third money-laundering draft directive to exempt casino members from showing ID on entry to when they enter the actual gaming floor.

"If these discussions fail, I will consider with the industry how best to resolve this issue."

Another memo suggested Lord McIntosh warn casino chiefs not to "talk up" their ambitions for the UK as it might "cause alarm and concern among MPs, peers and the media".

Culture Secretary Tessa Jowell was challenged in Parliament last November about newspaper reports that government officials had asked casino firms what concessions they wanted.

She told MPs the reports were untrue, adding: "Discussions on the money-laundering directive are a matter for the Treasury and still continue."

Reassurance demand

Two days later, Mr Blair said the claims were ridiculous when questioned by Tory leader Michael Howard.

The prime minister said: "I do not accept that he has somehow shown that there have been concessions offered on money laundering to casino owners."

Such claims were "ridiculous", he added.

Ms Jowell later wrote to Mr Howard making clear her officials had sought views from the industry's views but not negotiated.

Conservative shadow culture secretary Theresa May said the new papers raised "huge question marks" over the government's relationship with foreign casino operators.

And Tory Treasury spokesman Philip Hammond said: "We need to hear from the prime minister himself that he will not bow to pressure to relax the money-laundering laws that were introduced to protect against terrorism and organised crime simply to attract foreign casino operators to Britain."

'Laundering laws are safe'

The government says it was "entirely right", to talk to the casino industry during significant reforms of gambling laws.

"Part of this was discussing with them the draft directive and passing on their views and our views to the Treasury, who are the ultimate decision-makers," said a culture department spokesman.

"Tessa Jowell and Tony Blair never denied that we had talked to the industry.

"What they denied was that we offered special favours. If you analyse the documents we have released under freedom of information legislation, they confirm that.

"There is no question of us ever putting the effectiveness of money-laundering directives behind the interests of casino operators, wherever they are from."

The culture department believes casinos should have a choice between obtaining proof of identity from everybody on the gambling floor or just from those buying or cashing in 2,000 euros (�1,380) or more.

The Treasury is now consulting on that issue.