Glasgow's hopes of operating the UK's first mega-casino were delayed yesterday after official research said it would increase problem gambling, especially in deprived areas across the city.
Ministers also refused to support the bid, and remained with their neutral position of "not being opposed in principle", despite the potential for up to 3000 new jobs.
Although an economic boost from a regional casino was a given, ministers had concerns about the wider social impact.
Labour ministers were relatively keen on a mega-casino in Scotland, but their Liberal Democrat colleagues were concerned about gambling addiction, and so the cabinet compromised and adopted a neutral position.
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Glasgow is the only Scottish bid still in the running for the sole mega-casino license, with four candidate sites at Ibrox, Glasgow Harbour, the SECC, and an area near St. Enoch Square. The other contenders are Brent, Cardiff, Sheffield, Newcastle, Manchester, Blackpool and the Millennium Dome at Greenwich.
The social impact report says there is a lot of hype about casinos and the evidence shows they are not as economically beneficial as supporters claim, but also not socially damaging as opponents fear.
Around 3% of the UK population visits casinos, although this number is expected to increase to 10% with liberalization of the gaming laws, allowing more high-paying slot machines in venues.
About 6% of those who do visit casinos in the UK are viewed as "problem gamblers", meaning that their habit disrupts their friends, family and work, and can turn into debt, domestic violence, crime, bankruptcy, and suicide.
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