The Office of Deputy Prime Minister John Prescott turned down the application for incorporating a casino on Wolverhampton racecourse.
The decision came as a major surprise to course owner Arena Leisure.
“Our proposals have the support of the council, the chamber of commerce and Black Country Tourism, because of the hundreds of jobs that would be created and the boost to the local economy that it would bring. It’s extremely disappointing that the secretary of state has stepped in and overruled local stakeholders and their elected representatives,” commented Arena Leisure Chief Executive Ian Penrose.
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