At a full meeting of the authority, Coun Neil Cooper said he had read a report in the national press suggesting such a facility could bring social problems, including gambling addiction.
He went on to express caution many of the new jobs would be 'filled by eastern Europeans rather than local people'.
Deputy leader of the council Coun David Hill replied the casino bid was only one of a raft of initiatives proposed to encourage coastal regeneration.
He said there would be a series of briefing sessions soon at which members would be told about 'potentially exciting' developments.
Suggested sites for the casino include Mablethorpe and Skegness.
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