A glitzy $4.2 billion mega-resort and casino will bring an influx of tourists and create thousands of jobs in far north Queensland, locals say.
But environmentalists and gambling support groups are warning the proposed development could do more harm than good.
Queensland Deputy Premier Jeff Seeney confirmed on Friday that the first stage of plans to build Aquis Great Barrier Reef Resort, near Cairns, have been approved.
It must now pass environmental, social and economic approval processes overseen by the coordinator-general's office.
"It has the potential to provide significant economic benefits for Cairns and the Queensland economy as a whole," Mr Seeney told AAP.
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The 340-hectare resort and casino at Yorkeys Knob, a northern seaside suburb of Cairns, includes nine luxury hotels and a casino.
There will also be an 18-hole golf course, a 25,000 seat stadium and a cultural heritage centre.
The man who wants to build the mega-complex, Chinese billionaire Tony Fung, won't be asking the state government to stump up any cash for the project.
"I only seek investment certainty from an approval process," Mr Fung said in his submission.
He said the resort would rival great man-made structures seen in Dubai and Singapore and would attract big spenders from China.
Mr Fung claimed construction wouldn't impact the nearby Great Barrier Reef either.
But the Australian Marine Conservation Society disagrees.
"The concerns that we would have is about the size, the scale and the location as it is on the coast," spokeswoman Felicity Wishart told AAP.
"It's alarming that they're trying to create a man-made wonder of the world ... while potentially damaging what is one of the great natural wonders of the world - the Great Barrier Reef."
Professor Dan Lubman, director of Turning Point which runs the Queensland gambling help service, said more casinos lead to more gambling addicts.
"There is consistent evidence that increasing accessibility and availability of gambling opportunities increases the risk for problem gambling," he told AAP.
Yorkeys Knob Boat Club manager Stuart Vella however says the development is the best thing that could happen to Cairns.
"You've got massive unemployment in the region, people have got no hope and you've got a declining tourist industry," he said.
Mr Vella says Cairns needs a man-made attraction as tourists are no longer interested in the area's natural beauty.
Cairns Mayor Bob Manning hopes the proposal will encourage more investors to look at the region.
"I'm sure other people today will be looking at tropical north Queensland in a slightly different light," he told AAP.
The mayor said there's a lengthy process, including community consultation, which needs to be carried out before any development is approved.
If the mega-complex goes ahead it will likely open in 2018.
