Brent Council has pulled the plug on Wembley’s bid to host the UK’s first supercasino due to fears of an increase in problem gamblers, crime and traffic congestion.

The council executive met last night to consider the results of a recent public consultation as well as the findings of economic and social impact studies commissioned earlier in the year – and decided not to proceed with the bid.

The move to bid for the regional casino licence had initially been made by the formerly Labour-run council, but the newly-elected Liberal Democrat and Conservative council chose to take a second look at the proposals.

Although the economic impact study found that the casino would create more than 2,000 jobs and increase investment in the borough, the council felt this was outweighed by the effects highlighted in the social impact study.

The study claimed there would be an increase in problem gambling, particularly among those with low incomes, poor qualifications and some ethnic groups.

The public consultation, which received 3,626 responses, found 67 per cent of local people were opposed to the casino and just 22 per cent supported it, despite the benefits it could bring, including employment, tourism and the regeneration of the local area.

"We have carefully considered the findings of the economic and social impact studies and are not convinced that any potential benefits will outweigh the negative impacts likely to arise from a regional casino," said Cllr Paul Lorber, leader of Brent Council.

"We have also listened to the views of local people who have clearly said they don't want a casino in Brent. Taking all this into account we have decided not to proceed with the bid.

"We are, however, totally committed to seeing new and exciting developments in and around Wembley and will be looking at alternatives that will boost the local economy and bring real benefits for Brent residents."

Wembley’s backing out of the bidding race is a further boost to the former Millennium Dome, now the 02’s, supercasino campaign. The Greenwich site emerged as the frontrunner after the first round of judging by the Casino Advisory Panel last month.

It was reported this week that initial building work for a regional casino has already begun at the 02 site, even though the final recommendation regarding the location of the supercasino will not be made to culture secretary Tessa Jowell until the end of the year.