DREAMS of a world-class concert hall and an Olympic-sized ice rink for Southampton were hanging in the balance today.

Civic chiefs' hopes of seeing the West Quay 3 multi-million-pound city centre plan become reality were plunged into doubt after they lost their bid for a huge super casino.

Council bosses and developers had gambled on winning a government licence for the gaming paradise whose profits would help pay for the 10,000-seat indoor arena.

However, ministers wrecked their vision after they were forced to water down the controversial Gambling Bill to get it through Parliament before the May 5 general election.

Now city chiefs will be forced back to the drawing board to see how they can get the £250m scheme off the ground.

In order to see her Gambling Bill become law before Parliament is dissolved for the May 5 poll, Culture Secretary Tessa Jowell was yesterday forced to concede that there would be only one regional 'super casino', instead of the eight previously planned by ministers, because of Conservative opposition. It is likely to be built in Blackpool.

Opposition parties said the bombshell had thrown the whole West Quay stage three scheme into doubt.

Southampton Labour group leader Councillor June Bridle told the Daily Echo: "This kind of thing or something like it could potentially derail the whole arena scheme. We were urging the administration to have a Plan B because some things don't turn out how you think they might. We are very concerned for the whole scheme if there is no other enabling development."

Conservative group deputy leader Councillor Royston Smith agreed that the scheme could be under threat, at least in the short term.

He said: "At the moment, we have to wait for the next Queen's Speech to get back to where we thought we already were."

City council leader Councillor Adrian Vinson admitted the development was a problem.

He said: "Clearly it is a further complication, the significance of which we will need to examine in the light of the outcome of the general election and the intentions of any future government."

He added that the national Conservative decision had created "unwelcome" complications for cities such as Southampton.

Patrick Nally, chief executive of West Quay stage three developer Bravo, said he could not comment fully until he had seen the full details of the government's statement. He said: "We are in the design and development phase and there is no change at present."

The casino itself was due to be constructed by American gaming firm Ameristar. A spokesman said it was too early to say what the consequences might be.

The government has retained a clause in the Gambling Bill, which will allow further 'super casinos' to be voted on in the next Parliament, should Labour win the general election.

WHAT IS WEST QUAY STAGE THREE?

West Quay stage three is a major city centre development planned for Southampton on land between WestQuay shopping centre, the former Pirelli works and The Quays swimming and diving complex.

A key element of the project is a giant 10,000-seat arena capable of staging concerts by top-quality acts such as Robbie Williams and the Rolling Stones.

The arena - costing about £250m - was to contain an Olympic-sized ice rink. Developers have vowed to build a second ice pad on top of a multi-storey car park next to the De Vere Grand Harbour Hotel and The Quays.

The planned casino would have contained about 1,250 slot machines and would have created an estimated 1,000 new jobs for the city.

A giant hotel, shaped like a sail, was planned to sit on top of the casino and two other massive apartment buildings, also shaped like sails, were planned behind the casino and arena.