Seaside amusement arcades have been thrown a lifeline following fears that Government moves to restrict children's use of coin machines could put them out of business.

Ministers have pledged to review plans in the Gambling Bill to place age and prize restrictions on the use of the lowest category amusements, such as crane grab machines.

It followed a cross-party rebellion among MPs from seaside towns around the country including Bognor and Littlehampton's Nick Gibb, who described the plans as a "sword of Damocles" hanging over arcade owners.

Mr Gibb told the Commons: "According to a survey carried out by the British Amusement Catering Trades Association, 90 per cent of its members who run arcades in seaside towns will restrict their investment if this goes ahead."

Culture Minister Richard Caborn said there would be a review of the proposal which would report before the Gambling Bill goes before the Lords late next month.

Mr Gibb attacked measures to reduce the value of prizes available in the machines, classed as Category D, from £8 to £5.

This idea has brought protests that arcade owners would not be able to attract youngsters with prizes that appeal to them. Mr Gibb said: "This rings true with the experiences conveyed to me by my constituents who run Harbour Park in Littlehampton.

"It also rings true with the British Amusement Catering Trades Association survey, which showed that 88 per cent of such businesses believe that if stakes and prizes are reduced, the impact on them will be hugely negative."

Fruit machines for children only allow a £5 cash jackpot or £8 in tokens while adult machines can have a £25 jackpot.

Gary Smart, the managing director of Harbour Park, said the industry would be damaged if prize values were reduced and adult gambling areas were outlawed.

He said: "You have two licences in arcades like Harbour Park or the Palace Pier.

"A Section 34 licence allows children to come in and play and a section 34I allows an adult area, as long as it is fenced off. This is called grandfather rights.

"The Government are not saying we will have grandfather rights when the Bill comes out. They are a major element of what we have to offer. Grandfather rights are something we have enjoyed with no perceived problems."

Mr Smart said dropping the prize value from £8 to £5 would make crane machines less attractive and no longer viable.

He said: "Cranes and pushing machines, which are mostly set on 2p a play, are quite innocuous.

"We have to have prizes that make the game worth playing. Reducing the prize value seriously erodes that."

Sussex's Tories joined calls for the number of "super-casinos", which have been the most controversial area of the Gambling Bill, to be limited to four.

After criticism the Government was leaving the way clear for the development of a Las Vegas-style gaming industry in the UK, Culture Secretary Tessa Jowell has pledged to cap the number of proposed large regional casinos to 25.

But the Tories called on Monday for a lower number.

The move was defeated by 235 to 148, with Brighton MPs Des Turner and David Lepper supporting the Government's existing quota.

Thursday January 27, 2005