Applications for Stage 2 have been received from Casino 36 Ltd, in Temple Street and Wolverhampton Racecourse Ltd in Dunstall Park.
Wolverhampton City Council will be awarding a small casino premises licence with the aim of creating new jobs and providing a boost for the local economy.
The 2 applications will now be subject to scrutiny by the council's Evaluation Panel.
A report will be prepared and presented to Licensing Committee in June, where the licence will be awarded to the successful applicant.
Councillor Peter Bilson, Wolverhampton City Council's Cabinet Member for Economic Regeneration and Prosperity, said: "I am delighted we are getting closer to awarding the casino licence and we have 2 strong bids to consider.
"As well as enhancing the leisure offer we have here in Wolverhampton, a new development such as this will provide extra regeneration benefits to our city - such as the creation of new jobs.
"Both applications will now be assessed over the coming months before a final decision is made later this year."
Wolverhampton was one of only 16 authorities that were given the right, by Parliament, to grant a Casino Premises Licence under the Gambling Act 2005.
- released: Monday 17 February, 2014