The British government has survived fierce parliamentary opposition to its gambling reforms, pledging no Las Vegas-style casinos will be built unless local people want them.
MPs voted by 286 to 212 in favour of the Gambling Bill last night, but opposition parties and Labour MPs opposed it, fearing sweeping deregulation will lead to an explosion in gambling addicts.
"It is the worst possible political combination. It is something that is both wrong and unpopular," former Labour government minister Mr Frank Dobson said.
Rules capping the size of casinos and restricting them to city centres will be loosened and allow for the first time slot machines with unlimited payouts if the bill becomes law.
"It puts power firmly in the hands of local communities," embattled Culture Secretary Tessa Jowell said. "New casinos will only come to their area if they want them. Full stop.
"I know passions are running high," she told parliament.
Ms Jowell said lessons had been learned from countries like Australia, which boasts the world's highest rates of gambling. But she refused to put a cap on the number of potential new casinos while saying she was "open to new ideas" - an attempt to defuse the revolt.
MPs will have other opportunities to demand changes as the bill undergoes further scrutiny in parliament.
Ms Jowell, who predicts 20 to 40 "super casinos" could be built, said the bill's primary aim was to protect children and the vulnerable and make gambling fair and crime-free.
She added that local authorities should consult with their communities before giving a go-ahead and could slap a blanket ban on all developments if they wished or merely reject individual applications.
Some critics fear an increase in money laundering boosting organised crime, as they say happened in the United States.
International casino operators have already earmarked around £5 billion sterling to invest if bill is approved.