Christians have welcomed the defeat in the House of Lords last night of plans for 17 new casinos across Britain, including the giant super-casino in Manchester.

The Government's Gambling Order was thrown out by the House of Lords by 123 votes to 120, overturning the vote in the House of Commons in support of the proposals. It is now up to ministers to decide what shape the plans to build the casinos will take.

The Greater Manchester Chamber of Commerce Chief Executive, Angie Robinson, criticised last night's result, saying it was "complete madness" and an "absolutely outrageous decision".

Liberal Democrat Lord Clement-Jones, however, called it a "historic victory" while Shadow Culture Secretary Hugo Swire said it was "unthinkable" that the Government would try and submit the same proposals again in the near future.

Had the Lords backed the plans, large casinos would have been built in Great Yarmouth, Hull, Leeds, Middlesbrough, Milton Keynes, Newham, Solihull and Southampton, as well as smaller venues in Bath and North East Somerset, Dumfries and Galloway, East Lindsey, Luton, Scarborough, Swansea, Torbay and Wolverhampton.

Culture Secretary Tessa Jowell said before the vote that there would be "no plan B quickly" if the Gambling Order was defeated.

The Salvation Army and the Methodist Church have campaigned fiercely against Government plans to expand gambling opportunities across Britain. They warned of the damage that an increase in casinos would have on the most vulnerable people in society.

"Evidence suggests that the new casinos, the increasing popularity of online gambling and the general drift towards the 'normalisation' of gambling within British culture, could result in many more people developing a serious gambling addiction over an extended period," said Alison Jackson, Secretary for Parliamentary and Political Affairs for the Methodist Church.

Ms Jackson refuted the widespread notion that the super-casino in Manchester would bring much-needed jobs and investment to a deprived area.

She told Christian Today: "So many people believe that these casinos will bring regeneration to their areas. I think the jury is out on that. I think the kind of jobs the casinos will bring will be low paid and part-time. So we are not convinced by the regeneration benefits.

"What we need to do now is be concerned about minimising the damaging effect these casinos might have."

The Bishop of Manchester echoed Ms Jackson's sentiments in a statement welcoming last night's vote in which he reaffirmed that "the siting of a super-casino anywhere in this country is wholly undesirable".

He said: "I welcome the opportunity we now have to examine what sort of regeneration East Manchester deserves.

"In the past decade Manchester has successfully regenerated whole sections of the city without resorting to the empty promises of a super-casino.

"I believe those of us in the Christian churches and those from other faiths must continue to participate in the discussion; protecting the vulnerable, while encouraging regeneration based on sound and just economic principles."

Captain Matt Spencer of The Salvation Army said: "The Salvation Army and the Methodist Church would have preferred to see no new casinos allowed under the Gambling Act 2005. We therefore welcome any debate which allows space for a further consideration of the overall impact of increased gambling opportunities."