THE maximum stake on controversial Fixed Odds Betting Terminals is to be slashed from £100 to just £2.

The UK Government has taken the action after a lengthy campaign to reduce the harm the machines which have been dubbed “the crack cocaine of gambling” cause.

In the Glasgow the annual losses were reportedly more than£30m a year and even more when cash won which is then re-staked and lost in taken into account.

The betting industry has resisted the changes and says that jobs will be lost as a result of the move.

Glasgow has around 800 of the FOBTs in its 200 or so betting shops and there has been criticism of betting firms locating stores in poorer areas.

The UK Culture secretary Matt Hancock said the government was taking a stand.

The Gambling Commission had recommended cutting the maximum stakes down to between £50 and £2 per play.

The Government chose to go for the lower figure

He said: “When faced with the choice of halfway measures or doing everything we can to protect vulnerable people, we have chosen to take a stand.

"These machines are a social blight and prey on some of the most vulnerable in society, and we are determined to put a stop to it and build a fairer society for all."

The betting industry said it will have a damaging impact on the economy.

The Association of British Bookmakers said: "This is a decision that will have far-reaching implications for betting shops on the high street.

"We expect over 4,000 shops to close and 21,000 colleagues to lose their jobs.

Glasgow East MP David Linden campaigned for stricter limits on the machines.

He said there were too many in his constituency and in other poorer areas.

Mr Linden said: “The UK Government’s decision to cut the stake on FOBTs to £2 is very welcome.

“The harm caused by excessive FOBT stakes essentially became a major public health issue and was rightly dubbed the ‘crack cocaine’ of gambling.

“We know that stakes of up to £100 led to lives quite literally being ruined and ended - that’s why action was essential and I pay tribute to Ministers and other MPs who stood firm in the face of a deeply unedifying and aggressive lobby campaign from gambling companies.”