The replica slots are available in toyshops and supermarkets, and encourage children to feed fake money into the machines.

As soon as The Daily Telegraph alerted Gaming and Racing Minister Grant McBride to the toy yesterday, he said he would have the appropriate department review the toy's sale.

While his office was not responsible for toy poker machines, only real ones, he said he would refer the matter to the Fair Trading department.

"We would encourage parents to choose toys carefully in the lead up to Christmas," he said.

The machines feature the word jackpot and include plastic tokens, pull down handle, wheels and flashing lights – identical to those used by adults in pubs and clubs.

Mother Carmelle Coleman said yesterday she would not encourage her young children to play with the toys. "I think it would give them ideas when they see the money come out the bottom," she said. "I don't think it's a great idea for kids."

Mini blackjack tables and croupier kits are also on prominent display.

With gambling addiction rife in the community, the sale of toy poker machines alarmed parent and welfare groups who want them banned.

Gerard Byrne, who co-ordinates the Salvation Army's Sydney Problem Gambling Centre, said the number of people reporting gambling as a primary problem was on the rise.

"We see the devastation that gambling creates in peoples lives. We are concerned these toys might be a soft introduction to gambling," he said.

The Australian Bureau of Statistics' latest figures revealed that Australians put an astounding $8.7 billion through poker machines in 2004-2005.

Psychologists warned the playing of such games at a young age ran the risk of children developing addictive behaviour.

Australian Catholic University developmental psychologist Dr Barbara David said evidence suggested people had a predisposition to addictive behaviour.

"You are playing russian roulette by introducing kids to anything that has the potential to be addictive," Dr David said.