MINISTERS could be set for a change of heart that will put Blackpool in the forefront of gambling expansion.

Reports at the weekend suggested that the Government were set to make major changes to proposed new gambling laws.

They would, according to reports, put more power in the hands of the Deputy Prime Minister's office and regional planning agencies -- as urged by Blackpool Council and the North West Development Agency.

Casinos would then be focused on resorts in need of regeneration, particularly Blackpool.

But the report, in the Sunday Times, claims that the change of heart will be a blow to the gambling industry, which wanted to concentrate its investment in South East sites such as the Millennium Dome.

The newspaper reports have been given a cautious welcome by Blackpool Council bosses. Head of planning, Reg Haslam, said: "I don't think any newspaper article determines Government policy -- though it is an interesting angle on the situation.

"It is only part of a long journey towards the legislation -- it would be imprudent to make any assumptions at this stage.

"The debate about the legislation is clearly now a couple of years along the journey to an Act of Parliament. During that journey it is clear that regeneration has risen on a number of ministers' agendas. That is encouraging."

But a leading casino opponent, Cllr Steven Bate, said he was concerned at the development. He said: "This contradicts a stack of evidence recently accepted by MPs. Experience from overseas indicates casinos will transfer money and jobs from other leisure sectors, from bingo halls, from peoples savings, from bookies, from increased debts, and from the lottery.

"Mostly the money will come from half a million extra pathological gamblers, that will be created by the Vegas style slot machines. Would your readers call that regeneration?"