Hotel chain Hilton has unveiled plans to transform its seafront hotels into Las Vegas-style casinos with slot machines, roulette tables and cabaret.

The group's chief executive, David Michels, said Brighton would be used as a testbed for the plans which would then be rolled out to resorts across Britain if expected changes in legislation to deregulate the gambling industry go ahead.

Hilton, which owns both the Metropole and West Pier hotels in Brighton, hopes to lead the way under the relaxed laws creating a mini Atlantic City on the seafront.

Mr Michels believes banqueting halls could be turned over to full-scale casinos with 200 slot machines and 30 gaming tables.

He said: "There will be slot-machine areas as well as entertainment and gaming - roulette wheels, craps and poker.

"You could have mini Atlantic Cities."

The move would only be possible if the Government brings in new legislation liberalising gaming laws, including abolishing the current "cooling-off" period under which someone has to register with a casino in person 24 hours before they are allowed to play.

Hilton also plans to add cabaret and entertainment to attract couples where only one partner is interested in gambling.

"There are people who go to Las Vegas and don't gamble. In the same way, our resorts must always be an experience and not just a gamblers' den," said Mr Michels.

"If you are in a resort like Brighton there are plenty of other things to do if your partner is not interested in gambling."

The chain hopes to target the middle-market gamblers who take occasional weekend breaks to chance their luck on the wheels and cards.

The government White Paper will propose an end to bans on casino advertising, live entertainment in gaming clubs and gamblers drinking at roulette and card tables. It will allow clubs and betting shops to install more slot machines, with top jackpot prizes of as much as £1 million, and allow casinos to offer bingo with prizes up to £1 million.

The repeal of many of the restrictions imposed in the Gambling Act of 1968, which aimed to prevent problem betting and gangster control of casinos, will provide a major boost to Britain's £40 billion-a-year gaming industry.

Blackpool is already developing a complex on its Golden Mile designed to take advantage of the liberalisation of gaming laws by offering bingo, roulette and live entertainment under the same roof.