MILLIONAIRE businessman Duncan Bannatyne has vowed not to give up after his plans for a hotel and casino complex in the region were rejected.

The North-East tycoon's firm, Bannatyne Fitness, is still looking to redevelop land to the rear the health centre on Haughton Road, in Darlington.

Two planning applications have been submitted to Darlington Borough Council seeking permission for both residential and leisure developments on the 3.2 acre site.

A spokesperson for Mr Bannatyne said: "The site is on a gateway road into Darlington and Mr Bannatyne is keen to redevelop it and create more jobs in the region.

"It could become a casino or a hotel, and there maybe some housing, it will depend on what he can get permission for."

In April the council turned down the company's application for a 60-bed hotel, casino and 1,000-seat bingo hall on derelict land, mainly because officials believed there would be a negative impact on the town centre.

Casinos are restricted to 53 areas of the country, including Newcastle and Teesside, and cannot operate in Darlington.

The Government wants gambling facilities to be where developments can make the greatest contribution to economic prosperity.

But a Gambling Bill, which could come into effect in 2006, would abolish the restriction.

Two further applications have been made to the council by Bannatyne Hotels Limited, looking to expand the Grange Hotel, in Southend Avenue, Darlington.

Mr Bannatyne's spokesman said: "The plans seek to concert the existing function room into 12 bedrooms and extend the hotel on its east side to include a new function room and six further bedrooms. If successful, the number of bedrooms will expand from 45 to 63."

The full proposals go before the council's planning committee in the near future.