Main contenders, Greenwich and Blackpool, have been snubbed as ‘super casino' locations, in favour of Manchester.
The Casino Advisory Panel (CAP) announced its decision on Tuesday morning to culture secretary, Tessa Jowell.
‘All the proposals shortlisted for the regional casino presented their own particular and compelling strengths,' chair of the panel, Prof Stephen Crow, said.
‘We were, however, particularly impressed by Manchester's proposal.'
Leader of Manchester City Council, Richard Leese, said: ‘This is fantastic news for Manchester, and the region.'
The Millennium Dome in Greenwich was tipped to win, but the Institute for Public Policy Research this week said Blackpool should host the casino, as it would benefit most from the potential regeneration.
Bowing out of the competition, Greenwich council leader, Chris Roberts, congratulated Manchester on its success. But Blackpool Council's chief executive, Steve Weaver, and other contender Cardiff City Council's leader, Rodney Berman, both vowed to appeal to Ms Jowell over the recommendation. Cllr Berman said the decision was ‘far from certain'.
CAP also recommended Great Yarmouth, Kingston upon Hull, Dumfries and Galloway, Milton Keynes, Newham, Solihull and Southampton as areas for large casinos.