Slot machine prizes double as gambling rules relaxed

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Prizes will double to £70 and the maximum stake will rise from 50p to £1. It is the second rise in two years.

The move, which applies to slot machines in pubs, clubs and amusement arcades, will generate an extra 20 per cent in revenue for gambling firms and at least £27million for the Treasury.

But campaigners claim it will lead to an increase in the number of people addicted to gambling.

"We would be concerned that any increase in stakes and prize limits might be likely to increase the amount that people risk and the amount they would want to chase," Methodist Church spokeswoman Anna Drew said. "People do chase their losses on slot machines."

Ministers were originally going to raise the maximum stake to 60p and the prize limit to £60 but the gambling industry said it would not be enough to reinvigorate the market.

It comes after five bishops attacked Gordon Brown for policies that "encourage greed and a love of money".

The Prime Minister dismissed "moralistic" objections to attempts to encourage spending through the downturn, insisting that action was necessary "if an economy is not moving".