Gamble On Murrayfield Casino Plan

A massive casino complex could be built next to Murrayfield Stadium under plans being discussed by Scottish Rugby Union bosses.

The game's governing body is thought to be in talks with potential operators about the creation of what would become the Capital's biggest casino.

Edinburgh is set to mount a bid to become home to one of eight major new casinos planned for the UK. Land behind Murrayfield's West Stand is believed to be one of three contenders for the Capital complex, which is likely to also feature a hotel and sports centre.

The waterfront at Granton and Leith Docks are also believed to be in the running for the complex if the council decides next week to submit a bid.

Officials are recommending councillors throw their weight behind the idea in principle because of the massive economic and regeneration benefits such a project could bring to the city.

The SRU is thought to have held initial talks with the council about the proposed development.

The Murrayfield plan is thought to have been drawn up after it emerged that Rangers Football Club were planning to create a super-casino complex, which would also feature a hotel, conference centre and leisure complex, next to its ground.

Two other schemes in Glasgow have also been unveiled in recent months.

A major stumbling block with the SRU's scheme is that the back pitches are at the centre of a long-running saga over flood prevention plans the council has drawn up for the Water of Leith.

A key element of the authority's scheme is that a huge flood barrier is built at the back of the stadium and that the pitches continue to be used as flood plains.

But the council's plans were stalled by the Scottish Executive last year after a public inquiry reporter ruled against the Murrayfield element of them and in favour of the SRU's alternative proposal to build a steep grassy embankment next to the river.

Ministers have launched another consultation exercise involving local businesses and residents, with new flood proposals due to be published within the next few months.

The SRU's plans to develop land next to Murrayfield, which also include the building of hundreds of new homes, hinge on the Executive finding in favour of the governing body. The council is still hoping its original plans will be adopted.

A report for the council by corporate services director Jim Inch and city development chief Andrew Holmes admitted Edinburgh would struggle to compete with other cities to become home to the one regional casino.

But it said a large casino could act as an important anchor for an overall development, attract extra investment into an area, generate a significant number of jobs and help boost the city's economy.

The report states: "Tourism is now the third largest element of the city's economy and a large casino would provide an added offer in an increasingly competitive environment. Given Edinburgh's position as a tourist 'gateway' for the rest of Scotland there are potential wider national economic benefits.

"There is the potential for wider spin-offs relating to the development of gambling tourism in the locality and the opportunity to attract a new group of high spending visitors to the city."

A source said the SRU's scheme was being actively pursued because of the huge potential such a scheme has for generating money for the cash-strapped governing body.

An insider said: "The SRU is very keen on the project because it has the available land at Murrayfield and a casino complex would be so lucrative."

City planning leader Trevor Davies said: "There are obvious advantages that a major casino could bring to the city, but they are not going to be approved unless they are part of a bigger complex with the likes of a sports centre or hotel."

City council leader Donald Anderson said: "A major casino could bring huge benefits to the city in terms of regeneration and opportunities to create additional employment."

An SRU spokeswoman said: "The Scottish Rugby Union indicated within its 2005 Financial Statements that it continues to keep under review options for enhancing Murrayfield Stadium.

"In doing so a range of items are being considered, including both sporting and non-sporting related enhancements to the venue. At the present time no firm conclusions have been reached."