Politicians in Glasgow have welcomed the decision to slash maximum stakes on the controversial Fixed Odds Betting Terminals from £100 to just £2.

The UK Government has taken the action after a lengthy campaign to reduce the harm casued by the machines which have been dubbed ‘the crack cocaine of gambling’.

In Glasgow , home to around 800 FOBTS 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 strongly resisted the changes and says that jobs will now be lost as a result of the move.

Glasgow has four machines in each of its 200 or so betting shops and there has been criticism of betting firms locating stores in poorer areas.

Sports Minister Tracey Crouch announced the move

She said: “It is right that we take decisive action now to ensure a responsible gambling industry that protects the most vulnerable in our society.

“While we want a healthy gambling industry that contributes to the economy, we also need one that does all it can to protect players.”

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

Mr Linden said: “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.”

Glasgow council had previously called for local authorities to have power to limit the number of machines or ban them completely.

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.”

Other measure include stronger age verification rules and proposals for customer spending limits.

And a multimillion-pound advertising campaign promoting responsible gambling.