Ministers are facing complaints after Newcastle was chosen to be the headquarters of the Gaming Commission, the new body which will oversee the expansion of gambling in Britain.

Peter Dean, the chairman of the Gaming Board, said: "I don't pretend I welcome this from a regulatory perspective. It is a problem."

The government has repeatedly said that the board and its 76 civil servants would transfer to the commission.

The Gaming Board is based in London, near the headquarters of many casinos, relevant government departments, industry trade bodies and problem-gambling support groups.