PLANS for a huge casino in the North-East will be cancelled if the Government loses a crucial Commons vote tomorrow.

The Tories and Liberal Democrats will join rebel Labour MPs in voting against an order to give local authorities the power to issue licences for 17 casinos across Britain.

The revolt is because of widespread opposition to the surprise decision to award the only supercasino licence to Manchester instead of Blackpool.

But defeat would also block tendering to run the other 16 casinos - including ones earmarked for Middlesbrough and Scarborough, in North Yorkshire.

In January, the independent Casino Advisory Panel awarded one of eight licences for a so-called large casino with 150 slot machines and £4,000 jackpots to Middlesbrough.

Although the town lost out in the race for the supercasino licence, the new premises, at 1,500sq m, would still dwarf existing casinos in the region.

Scarborough joined Middlesbrough as the region's second winner, one of eight sites gaining permission for a small casino, with 80 slot machines.

However, the decisions were subject to Parliamentary approval, with separate votes to be held in the Commons and the Lords tomorrow. The Conservatives originally backed the Manchester victory, but have carried out a U-turn to embarrass Culture Secretary Tessa Jowell.

That means only 33 Labour MPs voting against the Government will defeat the order. More than 80 have signed a Commons motion expressing surprise and regret at the Manchester decision.

The Tories yesterday rejected allegations of opportunism. A party official said: "We are being consistent with our priority of reducing the problem of harmful gambling."

Expected to open by spring 2010, the Middlesbrough casino, with restaurants, bars and a hotel, would bring at least £10m of investment and 300 jobs to the town.

It is likely to be either at the town's Middlehaven site or at Middlesbrough Leisure Park.