THE Government's majority was halved last night as Labour backbenchers rebelled against plans that would allow large Las Vegas-style casinos to open in Britain.

Voting was 286 to 212, a majority of 74, at the end of the debate on the second reading of the Gambling Bill.

Early reports were that 29 Labour backbenchers had voted against the Government and many more had abstained.

Culture Secretary Tessa Jowell had earlier tried to head off a rebellion by pledging to strengthen the controversial Bill to place a "duty to consult" on local authorities.

Surprise support for the view that addiction would rise came last night from Nick Malone, the director of Bannatyne's Casino, which will open in Newcastle in February.

Mr Malone also agreed that the Government's motivation in opening the door to huge casinos with unlimited jackpots was to raise taxes, rather than to regenerate poorer areas.

Ms Jowell was given a rough ride as she opened the debate, insisting: "There will be no new casinos if local people don't want new casinos."

She said a "triple lock" would require any would-be casino operator to win approval from the Gambling Commission and both the local authority's licensing and planning departments.

Even if a local council did not want to ban all casinos, it could still outlaw a development if it was too close to a residential area, or a school, she said.

A specific clause in the Bill would also prevent casinos opening "by the back door", through converting an existing leisure facility, such as a swimming pool or cinema.

But senior backbencher Donald Anderson was among Labour MPs who voiced doubts, demanding pilot schemes to test Ms Jowell's view that the super-casinos were no threat.

Ms Jowell insisted that 90 per cent of the Bill would introduce tougher regulation, including the removal of slot machines from places where children could get hooked on them.

Tory spokesman John Whittingdale pointed out there were no powers in the Bill to limit the number of large casinos to 40, the Government's prediction.

Mr Whittingdale demanded a curb on the number of machines offering unlimited payouts.

Speaking to The Northern Echo, Mr Malone insisted pub slot machines, rather than large casinos, offered a greater threat of gambling addiction.

But he admitted: "We will get an increase in problem gambling, although the ratio compared to the overall number of gamblers will stay the same."

Asked what the benefits of more casinos were, Mr Malone said: "It will mean a lot more money for the Exchequer."

Tycoon Duncan Bannatyne's Newcastle scheme, along with proposals for casinos in Middlesbrough, Sunderland and Scarborough, is separate to the "super-casino" proposals contained in the Gambling Bill.

However, it would benefit from the Bill's intention to allow round-the-clock opening and abolish the requirement for membership to be taken out 24 hours before entry.