Cardiff's claims its bid is vital to building the sports village by 2012

Cardiff lost its bid to be chosen for the site of the huge casino offering 24-hour Las Vegas-style gambling.

But Swansea lands one of the 16 smaller casinos offering jackpots of up to �4,000.

Cardiff was up against Blackpool, London, Glasgow, Newcastle, Sheffield with Manchester the surprise winner.

A regional casino would enable Cardiff to continue to develop its profile as a leading European city with worldwide attractions and a strong developing economy Cardiff South and Penarth MP Alun Michael

Refusing to admit defeat, Cardiff Council leader Rodney Berman has said the city will continue its fight to build the UK's first regional casino at the sports village in the bay.

And Cardiff South and Penarth MP, Alun Michael, said: "I strongly support the casino bid and whereas I think Cardiff has been an extremely strong candidate for the single location, this is not the end of the game.

"A regional casino would enable Cardiff to continue to develop its profile as a leading European city with worldwide attractions and a strong developing economy."

The regional casino licence would allow a minimum total customer area of 5,000 sq m and permit up to 1,250 unlimited jackpot gaming machines.

The new licence would represent a significant new opportunity for Swansea to further broaden its growing leisure and entertainment offering Swansea council leader Chris Holley

It would also permit bingo and other betting services.

Meanwhile, in Swansea, there was more to celebrate as the city was successful in its bid to the panel for a smaller casino licence.

Council leader Chris Holley described it as "very good news".

"The new licence would represent a significant new opportunity for Swansea to further broaden its growing leisure and entertainment offering," he said.

"It will increase the vitality of the city and county and provide an extra boost to tourism."

Mr Holey added that they would be better placed to regulate gambling in the city in line with the new Gambling Act.