Guernsey could have its first casino within three years.
A licence condition is all work is completed within three years
St Pierre Park Hotel was the Tourist Board's preferred and only applicant for the licence.
The board will recommend the States award the licence at this month's meeting.
Board vice-president Brian Sherrif says the casino and the hotel's redevelopment will be beneficial to the island.
Costs and bureaucracy
The board is recommending the States grant the hotel a licence to build the casino at the same time as redeveloping the hotel at a cost of £25m.
The condition is that all the work is completed within three years.
The decision ends a lengthy and controversial application process.
In April, the manager of the Old Government House Hotel announced his decision to pull out.
Ken McVey blamed costs and a high level of bureaucracy.
And it was the £3.5m price tag that put off another contender.
The managing director of the Grande Mare Hotel said the package was simply too expensive.