The Guardian claims that Downing Street is in dispute with two government departments on the size of the cap on mega-casinos.

Tony Blair's aides want at least 10 super casinos to be allowed when the bill becomes law next year.

But John Prescott's office wants the numbers to be cut to four.

Tessa Jowell, the culture secretary, is calling for a compromise, proposing seven major casinos, one in each region.