Some city leaders are worried that legalized gambling could damage Bethlehem's effort to build a reputation as "the Christmas City."

For decades, the former steel town has promoted its historical district, its quaint shops and holiday craft shows, carriage rides and a family-friendly atmosphere in an attempt to lure tourists.

But the main attraction in Bethlehem would almost certainly become gambling if an investment group gets its wish and wins one of the state's coveted licences to open a slot machine parlour.

The proposed casino, on property that was once part of the massive Bethlehem Steel complex along the Lehigh River, would likely create jobs and produce millions of dollars in revenue for the city and the county.

Some officials, though, are questioning whether the financial boon would be worth the potential change in the city's character.

"I think whoever gets the casino is going to be regarded as a Johnny One Note that will become the reputation of the town," said city Councilman Joseph F. Leeson Jr. "It would eclipse everything else."

He said he was concerned that a slot machine parlour could be a magnet for prostitution, narcotics or organized crime.

BethWorks Now, the investment group lobbying to open the slot machine parlour, said it believes a casino could blend nicely with the city's other tourism efforts.