Manchester's proposed supercasino appears close to being formally scrapped amid reports that the Government will announce its decision within weeks.
The controversial Las Vegas-style gambling venue was dubbed "dead in the water" by Whitehall insiders when Gordon Brown announced a review after becoming Prime Minister last year.
Officials are said by the BBC to have made clear it will be axed - but 16 large-scale but smaller casinos elsewhere will still be built - in a letter to devolved administrations in Scotland and Wales.
And the broadcaster said the decision would be announced shortly after MPs return from next week's half-term break.
The Department for Culture, Media and Sport insisted that no final decision had been taken and said the letters were a required part of the consultation process.
She refused to comment on whether the letters set out any preferred position by the Government.
Shadow culture secretary Jeremy Hunt said: "The Government's flip-flops on this have left Manchester's regeneration plans in tatters and the gambling industry in turmoil."
Liberal Democrat spokesman Don Foster said: "The Government's casino policy is in disarray. They repeatedly ignored those of us who expressed concern on this issue, led councils on a merry dance and have now performed a complete U-turn.
"We're surely entitled to know why Gordon Brown failed to mention any concerns about the impact these casinos could have when he was voting in favour of them last year."
Large casinos are due to be built in Great Yarmouth, Hull, Leeds, Middlesbrough, Milton Keynes, Newham, Solihull and Southampton. The sites chosen for smaller venues are Bath and North East Somerset, Dumfries and Galloway, East Lindsey, Luton, Scarborough, Swansea, Torbay and Wolverhampton.
