Government caps 'crack cocaine' betting machine stakes at £2

The maximum permitted stake on controversial fixed-odds betting terminals (FOBTs) will be cut to £2 under new rules unveiled by the government.

At present, gamblers can bet up to £100 every 20 seconds on electronic casino games, which have been described as the "crack cocaine" of gambling.

Sports Minister Tracey Crouch said slashing the stake to £2 "will reduce harm for the most vulnerable".

But bookmakers have warned it could lead to thousands of outlets closing.

William Hill, which generates just over half its retail revenues from FOBTs, described the government's decision as "unprecedented", and said the new regulations could leave the company at risk of a foreign takeover and put 20,000 British jobs in jeopardy.

The company said its full-year operating profit could fall by between £70m and £100m.