Research by the Gambling Commission showed that bookmakers made £1.55 billion in profits from the terminals between April 2012 and March 2013, almost 50% higher than four years ago.
It also showed that more than 600,000 children were caught in betting shops last year, while betting shops have seen their take from fixed-odds machines rise from 33.9% of turnover to 49.4% since the start of the recession in 2008.
MPs will vote today on whether to reduce stakes and prizes on the machines.
A review by the Department for Culture, Media and Sport last month said it was "not clear how great an impact a reduction would have on gambling-related harm", despite accepting the dangers.
But Labour MPs will vote to throw out the review when efforts are made in the Commons to make it law, the Mail said.
MP Tom Watson said fixed-odds machines were "a menace to every high street".
He said: "The Government has it in their power to act. We hope to persuade them this is now an urgent matter.
"David Cameron has voiced his concern about the damaging affects of these high-stakes machines. MPs have the opportunity to send a clear signal that they expect ministers to take a precautionary approach by lowering the stake values from £100 to £2 on this category of machines."
The Campaign for Fairer Gambling and the Stop the FOBTs (Fixed-Odds Betting Terminals) Campaign will echo the call for a cut in maximum stakes to £2 at an event in Parliament.
Adrian Parkinson, a spokesman for Stop the FOBTs Campaign, said: "The explosion of FOBT gambling on high streets is building huge social problems in the most deprived areas. It's down to MPs through today's vote to block the government and deal with these addictive machines."
A Department for Culture, Media and Sport source said: "The last Labour government introduced FOBTs and neither criticised them not curbed their use for eight years. Their approach is entirely hypocritical and opportunistic.
"This government is undertaking the most comprehensive study into machine use ever seen in the UK. If there is evidence of harm, we will act."