The UK Government has announced stakes and prizes for UK Category C machines should increase following continued lobbying from the UK industry.
Prizes would double from £35 to £70 and the maximum stake would rise from 50 pence to £1.
It is hoped that this relaxation in legislation will provide a boost to the industry and generate an extra 20 per cent in revenue.
It is also thought the Treasury will benefit from an additional £27m a year in VAT.
Minister were originally going to raise the maximum stake to 60 pence and the prize limit to £60 but this was not seen by the UK industry as enough to reinvigorate the market in the present economic climate.
In response to claims that the change would increase problem gambling, the Gambling Commission said: "A £1 stake would not increase problem gambing providing that appropriate controls were put in place."
There are currently around 80,000 machines in operation in pubs with an estimated turnover of £10.3bn, of which £8.2bn is paid out in prizes.
It is thought the new limits will come into force no later than the beginning of the Easter holiday season 2009.
