Casino groups suffered a setback on Wednesday as the government confirmed industry fears, in response to a parliamentary committee, that it would not relax tough controls on slot machines as part of a review of 40-year-old gambling laws.

Government Response: Department for Culture, Media and Sport

Tessa Jowell, secretary of state for culture, media and sport, said: "I want to thank the committee again for their hard work. They have made good legislation even better and have built a consensus for urgent reform - helping mould a bill bold on new protections while cautious on extra choice.

"This caution means I think it's right to limit the new high prize slot machines to regional casinos. The committee's recommendation would mean nearly 130 more casinos would have these machines immediately. We have relatively low rates of problem gambling in the UK and reform needs to be taken in steady steps, not giant leaps, if we are to keep it this way.

"We urgently need a gambling bill because new gambling technology is making a mockery of our outdated laws. Without reform, new forms of gambling like internet casinos and roulette machines in bookmakers will continue to go unregulated. New protections are urgently needed and I'm confident we will be able to introduce a bill to parliament soon."

Stakeholder Response: GamCare

Peter Cox, managing director of GamCare, said: "Following the issue of the original draft Gambling Bill, the process of analysis, taking evidence and reporting back has been a very thorough one. Views have been taken from many stakeholders. As the bill is putting social responsibility at the top of the agenda and with the important condition that future gambling opportunities will be introduced in a controlled and measured way, it would be better for the bill to go through than be put on ice.

"The fact that demonstrable social responsibility will be a requisite for obtaining licences is good news for the public. At the same time, it is also vital that effective measures for education, prevention and support are established to assist those who require better understanding and help. This will mean increased financing for these essential services than has been the case in the past.