UK sports minister resigns in protest at gambling reform "delay"

(Adds Crouch's confirmation of resignation)

LONDON, Nov 1 (Reuters) - British sports minister Tracey Crouch resigned from government on Thursday, accusing it of delaying a proposed reform of gambling regulations.

The government is to cut the maximum stake on fixed-odds betting terminals (FOBTs) from 100 pounds ($130) to just two pounds, but announced this week the reduction would not take effect until next October.

The move came after ministers opted to try to tackle problem gambling on the machines and rejected claims that such a big reduction could cost thousands of jobs.

The reduction had been announced by Crouch, 43. The BBC said she had expected the change would be brought in from next April.

She (Munich: SOQ.MU - news) tweeted her resignation letter to Prime Minister Theresa May, in which she said: "It is with great sadness I have resigned from one of the best jobs in Government. I believe this delay is unjustifiable."

There was no immediate comment from May's Downing Street office. The departure of the junior minister is unlikely to have any impact on the fierce divisions over Brexit among May's ruling Conservatives.

The opposition Labour Party said Crouch had taken a principled stance over the decision to delay cutting the maximum stake.

"She poured her heart and soul into a significant review of these destructive machines, faced down a systematic lobbying attempt by the gambling industry and took the right decision for those suffering from problem gambling, their families and communities," said Labour's culture spokesman Tom Watson.

Earlier, the government said the reform had not been delayed and that its implementation was timed to coincide with other tax increases to ensure that there was no public finance shortfall. It also said the industry needed time to adjust.

"There is no delay in bringing this in. We have never confirmed a date until this week. We've listened to stakeholders ... who wanted it to happen before April 2020, and that's what we're doing," Prime Minister Theresa May's spokesman said. (Reporting by Michael Holden and Stephen Addison; editing by Andrew Roche)