Clubs aim to strike the casino jackpot

Manchester City have reached agreement with South Africa's Kerzner International, while Coventry City and Gillingham are both intent on building new stadiums with space allocated for large-scale casinos.

Even Wembley Stadium is preparing for a punting parlour on its doorstep after Caesars Entertainment, the owner of Caesars Palace on the Las Vegas strip, outlined plans for a £330m regional casino development.

Prime Minister Tony Blair reckons there will be between 20 and 40 new mega-casinos built and the Wembley plan is typical of what will be on offer.

It would include 75,000 square feet of gaming space, with 1,250 slot machines (the maximum allowed in the Gambling Bill), a 400-room luxury hotel, restaurants, bars and designer shops.

The operators, working with local and regional government, also pledge to make a contribution to the wider regeneration of the area. In Wembley's case, Ann John, leader of Brent Council, said: "We will look at the proposals in detail to see how they will benefit the local community."

Given that football stadiums are often located in run-down areas, it is easy to see why local authorities could be persuaded by the wider benefits and new investment. From the casinos' perspective, football grounds make "perfect sense", according to Mike Riddy, the managing director of Stanley Leisure's gaming division. He said: "The key rationale for us are location, excellent sporting links and the availability of a large piece of land close to city centres. Also, football clubs are already seen as a leisure destination."

And most club directors need little persuasion given the income potential of these lucrative deals. Gillingham chairman Paul Scally has held talks with a number of American operators about building a casino as part of his club's proposed new stadium.

He said: "A club does not make money outside the Premier League. At Priestfield, we have a five-and-a-half acre site which is used for 45 hours a year. That is not sustainable in the new arena we are looking to build.

"If American or South African operators are going to come over here then football clubs are an ideal venue.

"From a business point of view, they will produce a lot of income but these guys are also very socially aware. They are conscious of needing to put something back into the community by putting money towards local schools and sporting facilities."

It all seems like a win-win situation until you remember why casinos are so wealthy. Their profits are swelled by compulsive gamblers who blow their cash on addictive games which are skewed in favour of the house.

Campaigners fear major social problems if the Gambling Bill is passed in its current form and there are even splits in the Cabinet on moral grounds.

Jonathan Lomax, of the Salvation Army, the charity which has been one of the most vocal opponents of the Bill, said: "Football clubs need to be very careful before supporting this incredibly controversial measure.

"Do they want their brands damaged by being associated with a rise in gambling addiction?

"Football clubs market themselves as family-based entertainment. We'd be concerned about mixing that family-orientated brand with what is clearly an adults-only activity."

Arsenal resisted the lure of building a casino as part of their plans for Emirates Stadium, a decision that may stem from a long-term marketing agenda.

Michael Stirling, of law firm Field Fisher Waterhouse, which advises football clubs on investment, does not anticipate Manchester United, Liverpool or Chelsea following the trend, either.

He said: "The bigger clubs will probably wait and see. And I would advise them not to jump in. This is not a proven business operation yet and casinos do have a slightly seedy image that could damage a brand."