Culture secretary Tessa Jowell has called for a radical overhaul of Britain's gambling laws.

On Wednesday she unveiled details of the government's long-awaited gambling bill.

The new legislation will pave the way for casinos of no less than 5,000 square feet, offering a limited number of fruit machines with jackpots of up to £1 million.

The last major changes to Britain's gambling laws date back to when the late Roy Jenkins was home secretary in the 1960s.

A new gambling commission will be established, with powers to levy fines on casinos and pubs that contravene their licences.

New measures will be put in place to prosecute those found allowing children to gamble on their premises.

The authority will also have access to criminal records of licence-holders.

Only three per cent of people currently visit Britain's 120 casinos.

But it is predicted that this could increase to 10 per cent with deregulation of the industry.

At present Britons gamble more than £40 billion a year, a third of which is spent on National Lottery tickets.

The proposals have attracted criticism with Gamblers' Anonymous predicting that the number of problem gamblers could rise from the present figure of 375,000 to 500,000.

To combat gambling addiction the culture secretary will also take powers to guarantee the current annual voluntary levy of £3 million spent by casinos on research into addiction.

"Our gambling laws date back to the 1960s," she said.

"Since then attitudes to gambling have changed and the law has failed to keep pace with rapid technological change. Gambling is now a diverse, vibrant and innovative industry and a popular leisure activity enjoyed in many forms by millions of people. The law needs to reflect that.

"But we need to make sure that modernisation achieves, above all, new protections for children and vulnerable adults from the risks intrinsic to gambling. We must make sure crime is kept out and that gambling is conducted in ways that are fair to the consumer.

"In particular, we must take the strongest steps to protect children and vulnerable adults from being harmed or exploited by gambling. I believe this bill does that."

The move has the backing of the Gaming Board for Great Britain.

"Our gambling laws are out of date and the Board has been advocating an overhaul for some time," said chairman Peter Dean.

"We support the thrust of the reforms proposed by the government. I believe these strike a proper balance between increasing consumer choice for adults, affording greater protection for young people and the minority who have problems with their gambling.

"This will ensure that those who provide commercial gambling observe high standards of probity and social responsibility."