In a statement to Parliament Mr Sutcliffe proposed that the number of category B3 (£1 stake/£500 prize) gaming machines allowed in licensed bingo clubs should increase from four to eight. The move is a one off measure designed to help the bingo industry, which has seen about 15% of bingo clubs close in the last four years.

Mr Sutcliffe also announced plans to bring forward by a year a review of stakes and prizes for low stake gaming machines. The review will only look at category C and D (50p stake/£35 prize and 10p stake/£5 prize respectively) ‘fruit' machines typically found in pubs and some seaside arcades and traditional seaside amusements like ‘penny falls' and ‘crane grabs'.

But the Government has rejected proposals from the adult arcade industry to increase significantly the numbers and stakes of B3 machines in Adult Gaming Centres (arcades commonly found in high streets).

Mr Sutcliffe said that proposals by the industry could create high street ‘machine sheds' and put public protection at risk. It would also pre-empt work being carried out by independent regulator the Gambling Commission into the risks associated with high stake high prize gaming machines. Their current limit of four will remain unchanged and there will be no review of stakes and prizes for category B machines until this work is complete.

Earlier this year industry body BACTA proposed that Adult Gaming Centres be allowed category B3 gaming machines at a ratio of 20% of the total number of machines per arcade, an increase on their current limit of four. They also proposed a doubling of the maximum stake to two pounds.

Mr Sutcliffe said: "Bingo clubs also play a crucial role in many communities and we want to see that continue. For some people, especially older and retired women, bingo is their main leisure pursuit. It is therefore of great concern that nearly 100 bingo clubs have closed in the last four years.

"Having listened carefully to the case put forward by bingo clubs, I am persuaded that a number of special circumstances apply to the bingo industry. I'm confident that allowing a small increase in bingo clubs, where gaming machines are not the main reason for people to attend, will provide much needed help to struggling clubs without putting public protection at risk. I hope to implement these plans by the end of the year.

"I am also concerned that traditional seaside arcades are struggling and I want to help. Though public protection will still be our number one priority, we will bring forward a review of stakes and prizes for low stakes machines by a year.

"However, the proposals put forward by the adult arcade industry could encourage ever larger ‘machine sheds' in town centres across the country, with significantly higher numbers of high stake high prize machines. I believe this would put public protection at risk and pre-empt the Gambling Commission's ongoing research into the risks associated high stake and prize gaming machines.

"While I understand that some parts of the industry are experiencing difficulties, ever increasing stake and prize levels should not be a general solution to the industry's economic problems."

The Department for Culture, Media and Sport is launching consultations on these plans immediately which will affect England, Scotland and Wales. If Ministers then decide to proceed, necessary Orders will be put forward which will need to be approved by Parliament. This will require a debate, and potentially a vote, in both Houses.

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