The Government is to cut the maximum stake on fixed-odds betting terminals (FOBTs) - known as the crack cocaine of gambling - from £100 to between £50 and £2.
The high-stake, high-speed electronic casino games are said to be dangerously addictive and currently allow a stake of up to £100 every 20 seconds, allowing a player to theoretically gamble away £18,000 an hour.
The announcement is part of a package of measures announced in the Government's gambling review.
Culture minister Tracey Crouch said: "It is vital that we strike the right balance between socially-responsible growth and protecting the most vulnerable, including children, from gambling-related harm."
Raising standards of player protection for online gambling, a responsible gambling campaign and new advertising guidelines are among a raft of suggestions designed to help minimise the risk to vulnerable people and children.
Strengthening the code on responsible gambling advertising and responsible gambling initiatives are also being considered.
A 12-week consultation is being launched on the proposals, which are aimed at reducing the potential for large losses on the machines.
The Government has also asked the Gambling Commission for more information about how better tracking and monitoring of play on FOBTs might be used to protect players. They have also asked to see if the spin speed on games such as roulette should be looked at.