A watchdog has said proposed new Holyrood powers to stop the spread of high-stakes betting terminals are "too little too late".

The Campaign for Fairer Gambling warned plans to give the Scottish Parliament the ability to limit the number of so-called puggies in new bookmaker shops would have no impact.

The group - deeply critical of what it calls the "crack cocaine of gambling" - wants to see an effort to cut back on the nearly 4000 fixed-odds betting terminals or FOBTs installed in bookmakers across Scotland.

Fairer Gambling was speaking after the UK Government outlined plans to turn promised new powers of the Smith Commission - including restrictions on FOBTs - in to legislation.

The Labour Party, which introduced high-stakes puggies but has since regretted the decision, has said it would use the new powers.

However, Adrian Parkinson of the Campaign for Fairer Gambling, said: "This really is too little too late for Scotland.

"The proliferation of betting shops is already being dealt with under proposed planning changes, so the likelihood of large numbers of new betting shop applications is minimal.

"Westminster has not empowered Scotland to reduce the number of FOBTs, or reduce the stake on these addictive machines.

"It has instead created a protected monopoly for betting operators, which has added value to those shops currently licensed, as they will continue to operate up to four FOBTs per premises."

Both SNP and Labour politicians have campaigned against FOBTs. Mr Parkinson said, however, that only cutting the maximum stake on the machines from £100 to £2 would have a real impact.

SNP MSP Stuart McMillan said: "Being able to change the number of FOBTs in new premises does not tackle the current issue of the number of betting shops and FOBTs on our High Streets.

"Any bookmaker buying a premises which currently has a licence will also not be bound by any changes made."

Scottish Labour Shadow Social Justice Secretary Ken Macintosh said: "The spread of FOBTs is a very real concern in our high streets. These are highly addictive machines where people can lose a lot of money, fast.

"The Smith Agreement gives Scotland no excuse for not tackling this problem. A weekend lottery ticket or a night at the bingo are a normal occurrence for lots of Scots but FOBTs are a rigged game.

"That is why Scottish Labour will use the new powers coming to the Scottish Parliament to introduce legislation to ban the spread of FOBTs as well as set up a gambling commission to look at the impact of gambling in Scotland in our poorest communities."

Last year it emerged that Glasgow has more bookmakers per capita than any other city in Britain. Each shop can have up to four FOBTs; very few have fewer than four.

Labour and SNP politicians have both warned that this has let to the clustering of such businesses in Scotland's poorest communities, often close to payday loan shops.

The Association of British Bookmakers denies that its members target poorer neighbourhoods, insisting that shop locations reflect traditional demand for gambling.