Scottish ministers have concluded that local councils are best placed to weigh up the pros and cons of new casino developments in their areas.

This follows the publication of a research report on the social impacts of gambling and an assessment of the potential economic impact of a regional casino in Scotland.

The report will be sent to the UK’s Casino Advisory Panel for consideration, which will evaluate proposals from councils for the new casino licences.

Scottish enterprise minister Nicol Stephen said: “We commissioned this research because evidence on the impact of gambling in the UK, and particularly Scotland, is very limited.

“It is important to understand the social and economic impacts of new casino developments to help local authorities and the public to better assess the benefits or otherwise of such developments.

“Having considered the potential economic benefits and possible negative impacts of new casino developments, we recognise that proximity to casinos can increase rates of problem gambling, but the new research suggests that there are strategies to address and minimise problem gambling.

“We are not opposed in principle to new casino developments in Scotland, subject to there being significant demonstrable regeneration benefits and appropriate safeguards to mitigate the potential negative impacts.

“There are several Scottish councils keen to pursue new casino developments under the new UK legislation because of the perceived economic and regeneration benefits. We believe that councils are best placed to consider the pros and cons of pursuing such developments.”

The social impact report’s main findings comprise: the social costs of casinos tend to be exported to the areas where the gamblers who play them live, so resort and rural casinos tend to be associated with the lowest social costs relative to economic benefits, as the majority of their customers come from outwith the immediate area, whereas small casinos and those located in urban or suburban areas would have the greatest potential for negative social impacts, particularly if those areas are already characterised by high levels of social deprivation.

In addition, longitudinal studies from Australia, New Zealand and the US have found that the prevalence of problem gambling has remained stable or declined over time despite the introduction of casinos and other forms of gambling. This has been attributed to the provision of public awareness campaigns and treatment services.

The research on the social impacts of gambling was carried out by the University of Glasgow with the Scottish Centre for Social Research.

The study was undertaken through a review of the international research evidence, as well as relevant British research, on the social impacts of gambling and casinos. It also analysed fresh data from the 1999 Prevalence Survey of gambling in Great Britain to investigate patterns of gambling behaviour in Scotland.

The economic impact assessment was carried out by Scottish Executive economists.

Elsewhere, Glasgow council leader Steven Purcell has voiced his astonishment at the Scottish Executive’s failure to back the city’s bid to host the first supercasino, saying: “It is sad that the Executive could not support our plans for a regional casino-led regeneration. I find Stephen’s position astonishing because the Executive’s research estimates that a casino would create 3,000 extra jobs, even more than we had predicted.

“We will be dealing with Westminster on this issue, so the Executive’s support is not essential, but there is no doubt it would have helped.” Details: www.scotland.gov.uk