Residents packing a town meeting Thursday night defeated a proposed ordinance that would have imposed regulations on a potential casino in town and could have scuttled an agreement to develop a gambling venue at the former Showcase Cinemas.

In a 198-112 vote, residents voted against the ordinance and a push to bring the issue to a townwide referendum.

"This is good," First Selectman Robert Maynard said after the paper ballots were counted. "Now it is up to the legislature to decide."

In March, the board of selectmen signed an agreement with MMCT Venture, a partnership of the operators of Mohegan Sun and Foxwoods Resort Casino, to build a satellite casino on the Showcase property. The East Windsor gambling venue would be part of a strategy to keep gaming revenue and jobs tied to the industry in Connecticut as the opening of a $950 million casino and entertainment in Springfield draws closer.

Any expansion of casino gambling still needs legislative approval, which is not a lock in the current session. Three casino expansion bills — one favoring the Mashantucket Pequots and Mohegans and two others pushing a competitive process inviting more proposals — are still pending.

The town meeting tested not only the sentiment of residents for the proposed ordinance but how well voters were accepting the possibility of a casino being built in town.

"This proposed ordinance is about doing something the town already does plenty of – regulating what, where and how certain private and business activities can be carried out in our neighborhoods," said Brianna Stronk, the resident who proposed the ordinance.

Stronk added: "These are all prudent because they are designed to promote the peaceful enjoyment of the town, to protect public health and safety, and to preserve the character of the town."

But Joshua A. Hawks-Ladds, an attorney for the town, told residents that the ordinance should be rejected because it seeks to regulate an industry that isn't yet legally permitted under state law.

Hawks-Ladds also warned about one provision in the proposed ordinance that no casino be located within 2,500 feet of a state-run treatment center. The Showcase property, town officials have said, falls within that distance.

The provision would conflict with the agreement between the town and the tribes, potentially invalidating the agreement and spurring legal action against the town by the tribes "right out of the gate."

So many residents packed into the town meeting at the town hall that it had to moved across the street to the cafeteria at Broad Brook Elementary School. When the cafeteria filled up, the meeting moved to the school's gymnasium, where some residents sat on bleachers.

The town meeting exposed sharp differences of opinion among residents on the establishment of a casino in town. Some residents still smarted that a townwide referendum wasn't held before the original agreement with the tribes was signed.

The board of selectmen said a referendum was not required under the town's charter.

Residents said they were worried about traffic, increased crime and gambling addiction should the casino open in town.

Lisa Madsen, a 20-year resident, said she doubted that the casino patrons would help other businesses in town.

"They are not going to get off the road and go to the stores," Madsen said.

Angelo Sevarino, a resident and registrar of voters, said the ordinance presupposes the casino is "an evil thing."

Sevarino said he sees the casino as an opportunity for economic development that has eluded East Windsor for years.

"I am sick and tired of looking at the vacant property where the cinema property is," Sevarino said. "It does nothing for us."