The St Pierre Park and Grande Mare hotels in Guernsey are bidding for the first gaming licence to be granted in the Channel Islands.
CI Traders, the AIM-listed company that owns the St Pierre Park hotel, said it would invest £20m in the hotel if it won the licence, making it the island's first five-star hotel.
Tom Scott, chairman of CI Traders, said: "We are doing our utmost to secure the one and only casino licence for the island."
The independent Old Government hotel, seen as a potential third bidder in partnership with online bidding company Aspinalls, said it would not bid owing to the prohibitive costs and Government restrictions involved.
The government of Guernsey has ruled that all prospective casinos must be alcohol-free and based in a hotel. Gamblers will be required to show identification on entering a casino, and croupiers will not be allowed to accept tips.
The deadline for licence bids was Tuesday 22 April. A decision on a winner is due to be announced by the end of June.
Source: Caterer & Hotelkeeper magazine, 1 - 7 May 2003