THE Toon Army is facing a grudge match - with the Salvation Army.

The Government is locked in talks about changing the gambling laws that would allow the creation of Las Vegas-style casinos in the UK.

Newcastle United are already working closely with US gambling corporation MGM Mirage to create a hotel and casino complex on land next to St James' Park.

The scheme, which would create about 2,000 jobs, hinges on getting planning permission and the proposed change in gambling legislation.

Now, a cross-party committee of MPs looking into the draft Gambling Bill has warned the creation of casinos could lead to a big increase in problem gambling.

And the Salvation Army has given evidence to the committee warning that any benefits from jobs created by casinos would be outweighed by the damage resulting from gambling addiction.

Jonathan Lomax, of the Salvation Army, said: "We are not surprised that the committee has accepted that problem gambling will arise as a result of some of the measures included in the draft Bill.

"We are disappointed, however, that this is seen as an acceptable price to pay for more gambling opportunities, especially given the lack of public demand for them."

He said an NOP poll commissioned by the Salvation Army found 93 per cent of people felt that there were enough opportunities to gamble in the UK already.

"At this stage, we cannot comment directly on Newcastle United's proposals as they seem to still be in the very early stages."

MGM has given the football club £5m for a 50 per cent stake in the100,000sq ft plot of land near the St James' Park Metro station, which is owned by the club and is used as a car park.