A PLAN to build a major casino and hotel complex on Liverpool's waterfront was in jeopardy last night after city councillors pledged to block it on "moral grounds".

US casino group MGM Mirage are in the advanced stages of discussions which could see the development built at Central Docks, creating 1,500 jobs.

But Liverpool City Council has passed a motion which would stand in its way because it is feared the super-casino could increase gambling addiction.

A source close to the developers last night attacked the councillors' decision,, claiming their stance could halt a major job creation opportunity.

The source said: "The vote was very unhelpful. It is difficult to see why they are opposed to something that could bring about significant regeneration and jobs for the area."

The chance to operate large Las Vegas-style casinos has arisen as a result of the Government's proposals, contained in the Licensing Bill currently passing through Parliament, to relax gambling laws. Current laws impose limits on the size of casinos.

MGM Mirage has formed a strategic alliance with Liverpool John Lennon Airport owner Peel Holdings to bring the casino to the city. Mersey Docks and Harbour Company (MDHC) has confirmed that talks are well under way with the partnership with a view to creating the development at Central Docks.

A spokesman for MDHC said: "We have had interest expressed by more than one potential resort casino operator.

"Should such a scheme be brought to fruition, it would have a major economic impact."

The Central Docks complex lies two miles to the north of the city centre, next to Stanley Dock and its tobacco warehouse. The port operator currently has outline planning permission to develop 2,000 homes together with shops, a marina, bars and restaurants.

If the casino project were not to go ahead, it would be the second time this year that a proposal to develop Central Docks has been turned down by the city council. In August, the National Institute for Research into Aquatic Habitats had a £250m scheme rejected.

Liberal Democrat councillor Richard Kemp proposed the motion opposing the construction of a super-casino in Liverpool.

He said: "If a casino owner were given a licence, I don't think Liverpool would be top of their list any more as a place to come as we are going to make it as difficult as possible for them.

"They will prefer Manchester or other places that might want them."

He cast doubt over the number of jobs that would be created, saying his research showed that a super-casino would not employ more than the equivalent of 250 full-time jobs.

He also insisted that there was no need for hotel groups to link a decision to invest in Liverpool with the creation of a casino.

"They don't need a casino in order to do it.

"There is plenty of demand for hotel rooms in the city," Cllr Kemp added.

He warned that, while a casino might attract one type of tourist, it would turn away many others who had traditionally come to the city for its culture, architecture or sport.

His main reason for opposing a super-casino was to prevent local levels of addiction and debt from rising.

Cllr Kemp added: "There are plenty of studies from America that show a big casino creates gambling addiction among groups in the local population.

"We have to consider the social consequences.

"The casino companies don't give a damn about that."

Both Peel Holdings and MGM Mirage declined to comment last night.

billgleeson@dailypost.co.uk