The Government has confirmed it will cap the size of stakes gamblers can make on so-called fixed odds betting terminals (FOBTs), reducing them from £100 now to between £50 and £2.

A 12-week consultation has been launched today to "ensure stronger protections around online gambling", alongside a package of measure intended to promote responsible gambling.

The Government review of the betting industry had been delayed because of the General Election.

The industry has been bracing itself for a tougher stance after all of the main opposition parties including Labour, the Liberal Democrats and the Democratic Unionist Party - which now gives the Conservatives their majority in Parliament - campaigned to cut stakes to £2.

The Department for Culture, Media and Sport said it was now consulting on whether the limit players can stake in one go should be £50, £30, £20 or £2.

The gambling industry has argued that a £50 limit in betting shops already exists to a degree because gamblers who want to put more than this on one spin on a FOBT have to register this with staff, who can deny this request.

The DCMS also announced that industry players would collaborate on a two-year responsible gambling advertising campaign, while the Committees of Advertising Practice would draw up new guidelines for the sector.