FITNESS entrepreneur Duncan Bannatyne is facing a setback over plans to build a hotel and casino complex in the region, it emerged yesterday.

Planning chiefs have disclosed serious reservations about what would be a 7.5-acre development on a prime piece of land on a key route into Darlington.

Bannatyne Fitness wants to build a 60-bed hotel, creating 30 jobs, on derelict land near its existing Haughton Road health club.

The proposal also includes plans for a casino and 1,000-seat bingo hall, on separate floors of a two-storey building, which would bring a further 150 jobs to the town.

The company has submitted its outline proposals to Darlington Borough Council and their fate will be decided at a planning meeting on Wednesday.

But councillors are being urged to throw out the plans because officials believe there is no need for more gambling premises.

They are also concerned that there would be a damaging effect on the town centre, with crucial future investment possibly being diverted away from it.

Casinos are currently restricted to 53 designated areas of the country and cannot operate in Darlington.

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

In its submission to the council, Bannatyne Fitness argued that the region had too few casinos, that Darlington was under-provided for in terms of bingo facilities and that the firm already had four expressions of interest from operators.

But Town Hall officals argue that the Gala bingo hall, in Skinnergate, has planning permission to increase its capacity to 1,200.

Together with the Eldon Street club, the council believes that is more than enough provision.

A report to councillors says the Government wants gambling facilities to be based "in locations where developments can make the greatest contribution to economic prosperity".

It adds: "The council's town centre development strategy places great emphasis on enhancing and facilitating leisure development in the town centre.

"In the officers' view, permitting the leisure proposals at Haughton Road would undermine all of these strategies."

A spokesman for Mr Bannatyne said that they were outline proposals at this stage, but no further comment could be made before the meeting.