PLANS for a large casino in Southampton have been thrown into doubt after Gordon Brown announced that he was reviewing the government's gambling policy.

The Prime Minister stunned MPs and council chiefs by revealing he would look again at whether there "may be a better way to meet economic and social needs" without building giant supercasinos.

In January, Southampton lost out in the race for the sole super- casino licence, which was awarded to Manchester.

Instead, the Casino Advisory Panel awarded Southampton one of eight licences for a so-called "large" casino - with up to 150 slot machines and £4,000 jackpots. The new premises, at 1,500sq m, would dwarf existing casinos in the city.

Before the local elections civic leaders had earmarked the casino, which could create up to 350 jobs, for the derelict Royal Pier and a number of operators had ex-pressed an interest.

However, the new Conservative ruling administration said that since they came into power in May no casino operators had so far come forward to apply for the licence.

The Department of Culture, Media and Sport was unable to confirm whether Mr Brown would be reviewing the decision to licence the Southampton casino as well as the Las Vegas-style mecca planned for Manchester.

Southampton Test MP Alan Whitehead called on the government to set out its position as soon as possible.