By Mark Davies BBC News Online political reporter

The Commons' culture, media and sport committee heard that the gambling industry's current funding of the Gamcare charity was "pitiful".

Gambling review

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And the MPs were warned that the scale of the gambling problem in the UK could be as serious as that of heroin addiction.

The committee is examining the government's proposals to reform gambling laws, with many regulations set to be scrapped or relaxed.

On Tuesday, MPs heard evidence from Gamcare, the charity set up to promote responsible attitudes to gambling and to provide counselling for those with gambling problems.

The Bishop of Blackburn, Alan Chesters, who has made fact-finding trips to Las Vegas and the Biloxi hotel casino resort in Mississippi, also gave evidence.

'Victims'

The bishop's diocese includes Blackpool, where there are proposals to open hotel casinos once legislation to reform gambling laws has been passed.

It is vital that proper provision with adequate funding is made...by way of prevention of addiction and the proper care for the addicts

Alan Chesters, Bishop of Blackburn

He told the committee he was encouraged by the potential to aid the regeneration of Blackpool through the reforms, but was concerned about potential "victims" of gambling.

In his submission to the MPs, he said: "It is vital that this is recognised and proper provision with adequate funding is made both by way of prevention of such addiction and the proper care for the addicts and their families."

He said the government was "complacent" about these issues, saying there was a need for "a much tougher approach to ensure that responsibility properly rests with those who provide the gaming facilities and not with charitable bodies, the churches or the already overloaded NHS".

Care

Gamcare director Paul Bellringer said the charity estimated that 3.5 million people either have a gambling problem or are adversely affected by it.

He said the charity had received �311,000 this year to fund its helpline and counselling services, against a government target of �3m for such services.

He added that expansion of the industry should not be allowed until increased funding is provided.

And he warned that without careful planning, the UK could experience an increase in gambling related problems such as that experienced in Australia after laws were liberalised.

He said the government should consider a statutory or voluntary levy on the gambling industry to fund support services.

Mr Bellringer said that in 2001, 9% of the calls received by the charity were from under-18s, while 27% were from 18 to 25-year-olds.

'Hidden problem'

And Professor Jim Orford of the University of Birmingham warned of "dangerous and potentially addictive" fruit machines and called on the government to end "the anomaly of under-age machine gambling to continue in Britain".

Gambling chiefs are being urged to help addicts

Professor Orford said there was no NHS provision for the problems of gambling, which he said had been "a hidden problem" perhaps on a similar scale to that of heroin abuse.

Rachel Lampard, spokeswoman for the Methodist Church, said it was vital that the industry was effectively regulated.

There was concern among some MPs that without a compulsory levy on gambling businesses to provide for support services, cash would not be made available.

Liberal Democrat John Thurso said there was "not a cat in hell's chance" of gambling chiefs paying up unless forced to do so.

'Gun to the head'

But Brigid Simmons, chief executive of Business in Sport and Leisure, said she believed there was no need for a statutory levy.

She said that if the government found that a voluntary scheme was not providing enough cash, then only then should a compulsory measure be considered.

She said the industry would increase its contributions as the reforms to the industry progressed through parliament - a position described as "a gun to the head of the government" by Labour MP Frank Doran.

Keith Smith, president of the British Amusement Catering Trades Association (BACTA), said 25 out of the 690 companies represented by the organisation made contributions towards bodies working on the social impact of gambling - a figure derided as inadequate by Labour MP Debra Shipley.

Both BACTA and the British Casino Association highlighted the creation of the Gambling Industry Charitable Trust which has raised �800,000 to help people with gambling problems and to research problem gambling.