Gambling could be key to West Quay 3

The Daily Echo can reveal talks have taken place between Las Vegas-based gambling and hotel group Ameristar and city bosses to build a giant 'resort-style' casino at the West Quay Stage Three development.

Cash from the development would be put towards funding the city's flagship £50m arena, which is due to be completed by 2007.

The arena will include an Olympic-sized ice rink that can be transformed into an 8,000-capacity area for concerts. But the funding would also help to pay for a second permanent ice rink, which would be placed at the side of the main building, specifically for leisure use.

News of the proposed deal emerged as the government became embroiled in an increasingly bitter battle with its own backbenchers over plans to relax Britain's gaming laws.

It's led to calls from Southampton Itchen MP John Denham for a local referendum, as he believes West Quay 3 should not be linked to such a controversial development.

Bravo, the developers at West Quay, have insisted the expanded arena and second ice pad for Southampton's skaters would still go ahead even if the Bill allowing 'super casinos' to be built in Britain fell through.

Chief executive of Bravo, Patrick Nally, said: "We have been in discussions with Ameristar. There has been a lot of interest in the site from a number of companies that are looking at the new casino regulations.

"It is all subject to legislation. Nothing has been firmed-up. We are subject to issues which are outside our control at the moment."

He added that even if the legislation scaled down the number of proposed casinos in the UK, cash to pay for the arena and the ice rink would be found elsewhere.

He said: "We need something like 25 per cent of capital construction costs of the arena subsidised. We can't carry everything ourselves.

"It is not dependent on a deal with Ameristar. If for any reason the legislation does not go the way it should, we have got a very clear alternative way we can proceed."

Two weeks ago the Daily Echo revealed how Bravo had come up with a scheme which would see Southampton's planned arena have a second public ice pad, to be used for leisure.

But Mr Denham said residents of Southampton should be given their say before a deal is struck.

He said: "We should be seriously asking if this should go to a public local referendum. This is not a straightforward party political issue.

"It would be much better if the West Quay Stage Three development was not linked to a controversial development of any sort. If we have this sort of proposal, we ought to listen to what members of the public have to say."

His comments were echoed by Labour leader Councillor June Bridle, who said: "Let's be honest, if the people of Southampton would like a casino I don't see any problem. I would welcome the public's views.

"It would generate a lot of employment but it comes with the downside of really fuelling people's concerns about gambling and what appears to go with gambling.

"There are really concerns about how that would affect the city's night-time economy. There are lots of questions to which people would like answers."

The city council's Conservative group deputy leader Councillor Royston Smith added that if the government failed to win backing for its Bill to deregulate gambling, the development of West Quay's arena and public ice rink could be under threat.

He said: "If this legislation stops resort casinos opening up, then it would seriously jeopardise the project. To do the ice rink, you need commercial backing from someone."

Council leader Councillor Adrian Vinson said: "We are clearly watching the progress of the current legislation carefully.

"Our attitude to any project for a development in Southampton will depend on how the legislation is ultimately determined and the protection that would surround such a development.

"That includes the attitude of the developer and the benefit to the city that might accrue as a result, particularly for groups who might currently find it difficult to enter the labour market.

"We recognise that West Quay will require substantial commercial input and Bravo have brought before the council an option which can secure that."

A spokesman for Stanley Leisure, which owns the Stanley Southampton Casino in Terminus Terrace, said the group would not be prepared to comment on the proposals until a clear picture emerged of the law contained in the Gaming Bill.