A US gaming company has been granted a license to open a casino at the new Coventry Arena.
A panel will decide the venue of the new super casino
Isle of Capri was given the licence under the Gaming Act of 1968 and the casino is due to open late 2006.
The company had been hoping to open a "super casino" on the site but last week the government announced only one such regional casino will be allowed.
Blackpool has been widely tipped for the pilot location but Isle of Capri is pressing Coventry as an ideal venue.
It says the city's site will be up and running before any other project in the UK.
Coventry City Football Club are due to start playing at the 32,000-seat stadium next season as part of the Arena project.