London's Millennium Dome is set to be the site of a massive Las Vegas-style casino hotel if gambling reform gets the go-ahead.

Casino and resort developer Kerzner International has signed an agreement with the Anschutz Entertainment Group to develop and operate a $350m (£188.6m) casino and hotel resort at the Dome. The hotel will have up to 600 bedrooms.

Kerzner has also been appointed "preferred developer" for a further two casino hotels in the UK. It has signed a deal with the Scottish Exhibition and Conference centre in Glasgow to build a $300m (£161.6m) resort casino and hotel complex, projected to open there in 2007, and has signed a separate deal for a similar operation in Manchester.

The group said total capital expenditure for the three development projects would be about $1b (£539m).