A NEW law which would allow more slot machines in arcades has given hope to beleaguered amusement centre owners.

In July, the Echo reported a third of arcades in Southend had folded in the past two years because of the 2005 Gambling Act, which placed limits on the number of coin machines allowed in arcades and bingo halls.

It also put customers off, as it limited stakes in some games, which reduced potential winnings.

But the new Government is planning to reverse the measures to help arcades and bingo clubs which are suffering after the recession.

Five Southend arcades, including Funland, opposite the Kursaal, and Wonderland, in Western Esplanade, have shut down recently, leaving ten others to struggle on.

Graham Rawlinson, owner of Fantasia, in Eastern Esplanade, said: “It can only be good for the industry.

“All it is doing is returning it to how it used to be.

“It’s been extremely difficult for us. I’ve just had to cut another two members of staff, because I can’t afford to keep them on. It’s really tough.”

However, Mr Rawlinson was concerned that, because of returning to the increased limit, amusement arcades could have to buy new machines which would be expensive.

Mr Rawlinson, who has had an arcade on the seafront for more than 30 years, is planning to take early retirement, but his business, which employs eight people, will continue.

Canvey seafront has three remaining arcades.

A spokesman for the Department of Culture, Media and Sport said Secretary of State, Jeremy Hunt, was close to making a public announcement about the changes.

He added: “The Govern-ment accepts these are some of the oldest tourism and leisure businesses in Britain.

“Arcades and bingo clubs employ some 37,000 people between them.

“They are important elements of many local economies, particularly in seaside towns, so we are keen to ensure they can remain competitive in these tough economic times.”