MAJOR regeneration plans for the O2 have suffered a setback after the failed super-casino bid.

David Campbell, president of Anschutz Entertainment Group, says the Casino Advisory Panel's decision sets back the £350m investment it had planned.

The panel surprised commentators on January 30 when it chose Manchester instead of Greenwich as the site for the UK's first super-casino.

Without a casino, 10,000 homes and more than 4,500 jobs will not be created.

A five-star 500-bed hotel and a second 350-bed five-star hotel will also not happen.

Other plans which are in jeopardy include a 1,800-seat theatre and a cable car service to Canary Wharf.

The regeneration was part of a £5bn development planned for the Greenwich Peninsula over the next 15 years.

Mr Campbell told a Greenwich Council meeting on January 31 it had missed out on a massive opportunity to put itself on the world stage.

He said: "We were disappointed with the decision and for the people of Greenwich; it is very sad.

"The casino was seen as the catalyst to drive the regeneration of this important part of London."

Mr Campbell added: "The homes and the hotels were dependent on having a casino. We have to look at other options and have a lot of work to do.

"But as yet there will be nothing developed to fill in the space where the casino would have been."

The Greenwich casino would have included space to hold exhibitions.

Despite the failed bid, an exhibition on Tutankhamun's tomb and treasures will still take place in November.

Ray Smith, from the Greenwich Society, said: "We are disappointed. The point is not so much about getting the casino but it was part of a far bigger project."

Bexley, Greenwich and Lewisham Chamber of Commerce president Steve Nelson said: "I hope the Government sees sense and it can be lobbied to get a super-casino in Greenwich."

Speaking after the panel's announcement, Greenwich Council leader Councillor Chris Roberts said: "I would like to congratulate Manchester on the success of their bid. I wish them every success for the future."

Mike Leader, chairman of the Greenwich Peninsula chaplaincy, said: "We are quite relieved about this decision.

"We did not think there was any need to have more opportunities for gambling.

"Vulnerable people are now protected."