UK seaside amusement arcades could half in numbers within the next 12 months unless the Government take serious action, according to a report by the Independent newspaper.

A clause in the UK Gambling Act which has seen the minimum stake for players on fruit machines that offer a jackpot of £500 drop from £2 a time to £1, combined with the number of machines restricted to four per venue has had a serious and detrimental effect on revenues.

In an interview with the Independent newspaper, Jimmy Norman, who runs an entertainment complex in Portsmouth, said: "Unless we change these rules within the next six to 12 weeks, arcades will start going under.

"We rely on the income from these machines to keep the rest of the business going. The summer season will be crucial because we can’t survive as things are."