The gambling industry is concerned that National Lottery officials will undermine proposals to sweep aside restrictions on gaming and betting.

The industry is dismayed that the government has given the Department of Culture, Media and Sport responsibility for the reforms - taking responsibility away from the Home Office.

After initial hopes that the DCMS, with its role in tourism and leisure, would smile on changes to gambling laws the industry now fears that the department may try to protect the National Lottery from its gaming rivals.