Nikolas Shaw Ltd, the operator of the Opera House Casino in Scarborough, has secured the town's new small casino licence, following Apollo Leisure's decision to withdraw its application.

The two operators were the only two in the running for the licence, which is among the first of the small licences created under the 2005 Gambling Act to be awarded.

Apollo Leisure had planned to develop a whole new entertainment complex in the town, but following its decision to withdraw, Nickolas Shaw will be given the green light to create additional facilities at its existing premises.

"Everyone at Opera House Casino is absolutely delighted with the news that we have been awarded the small casino licence," said the property's owner, Nikolas Shaw.

This, he said, may also lead to the company being awarded preferred bidder status for the redevelopment of North Street and a new multiplex cinema.

"While we are disappointed that Apollo has decided to pull out of the competition, this is still a very good outcome for the town," said Alex Richards, project manager for Scarborough Borough Council. "Opera House Casino is already an excellent facility for Scarborough and is a very popular part of the night time economy.

"We welcome the opportunity given to this local company to develop its business further, provide even better facilities to customers and help secure a sustainable future in the town."