Hokkaido may fold its hand in the nationwide bid to host newly legalized casino resorts partly due to environmental concerns, government sources said Thursday.

Gov. Naomichi Suzuki is expected to announce a decision Friday to the Hokkaido assembly, according to the sources. Suzuki has said a decision on whether to set up a casino at a candidate site in Tomakomai would be made by the end of the year after some residents voiced concerns about the environmental impact of building a so-called integrated resort housing a large hotel and conference rooms.

Members of the ruling Liberal Democratic Party, the majority force in the assembly, and those close to them have not taken a clear position on the issue, with some cautious about Hokkaido hosting such a resort.