Slot machines in the Stranraer casino could pay out up to �4,000

Gordon Brown promised a report on the "social effects" of gambling would be completed by September.

The move led to speculation that plans for a super-casino in Manchester and 16 smaller casinos in towns including Stranraer could be shelved.

But the local MP said he had received assurances about the Stranraer casino.

Mr Brown told the Commons the review would look at whether casinos were the best way of regenerating towns and cities.

Dumfries and Galloway MP Russell Brown said he believed the prime minister's concern was focused only on the super-casino rather than the 16 smaller casinos.

Parliamentary ping-pong

Mr Brown added: "The super-casino is undoubtedly the issue.

"It is really I think about the department of culture, media and sport settling down to look at how it can separate that one super-casino away from the other 16, keeping in mind it was a UK-wide project that was being looked at."

David Cairns, minister of state at the Scotland Office, admitted there were problems but said the Stranraer casino "might" go ahead.

"I don't think that has been ruled out," he said.

"We have still got a problem with the whole concept of the casino, namely that the House of Commons passed the legislation but the House of Lords is blocking it.

"Either we play parliamentary ping-pong with this as it passes from one house to the other or we find a way through that addresses the concerns that people have about problem gambling."

Mr Cairns said it was important to look at issues of regeneration in towns like Stranraer before a final decision was made.

He added: "What the prime minister was signalling was a review of how we can try to achieve both these ends because at the moment we are in stalemate between the House of Lords and the House of Commons."