A NEW seafront casino could blow a huge hole in Southend United’s £100million development plans for Fossetts Farm.

Rank Group originally planned to set up its gambling centre in the football club’s new retail park, which would be built alongside the proposed 22,000-seater stadium.

But repeated delays to the project forced the company to look elsewhere, with the Palace Hotel emerging as a likely contender last month.

The switch could undermine the Blues’ plans, as a new casino has always been a key part of the club’s proposals for the second stage of development.

Derek Jarvis, responsible for culture and tourism at Southend Council, said the authority had been keen to see the casino remain part of the out-of-town complex.

He added: “I think it was a good site.

“With only three casino licences available in Southend, and two already on the seafront, I think a lot of us liked the idea of having a third one in a different location.

“The out-of-town site was quite attractive and I am sure it would have worked well.”

Building work on the stadium, a 114-bedroom hotel, conference facilities and a players’ hostel – the first phase of the project – is predicted to start next month.

The second phase, comprising the proposed casino, a supermarket and a football academy, was supposed to get under way six to nine months later.

However, bosses have repeatedly said building work on the retail park will not begin until letting deals have been struck for the majority of the development.

That means, if the Palace Hotel plans get the go-ahead from council chiefs, the lack of a casino could mean even more delays for Blues fans.

Ron Martin, Southend United’s chairman, was unavailable for comment.