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Britain Leading Online Betting May 8, 2003

Who will win the race to dominate the global betting industry, and take billions in prizes? On current form, the hot favourite is Britain, thanks to a mixture of history, enterprise and legislation. Global gambling is on the rise chiefly because of technology, which makes it possible to place bets cheaply over long distances.

That allows people in countries where betting and gambling are either corrupt (as in many east Asian countries) or crippled by legislation (as in America) to move their business to friendlier environments. Britain's first big advantage is a good reputation abroad. Place a bet in a betting shop, and you have someone solid to complain to if something goes wrong.

By abolishing betting tax in October 2001, the government has brought almost all British-owned off-shore betting businesses back to this country: turnover has risen from £8 billion ($13 billion) to £15 billion, of which a big chunkup to a third on big eventsis already wagered from abroad.

Britain already has around three-quarters of the cross-border betting market. The government estimates, perhaps conservatively, that cross-border gambling will grow to £10 billion by 2005.

The big question now is what to do about customers in countries, chiefly America, where cross-border gambling is illegal. The government's consultation paper says that decisions on how far to abide by other countries' laws should be left to individual businesses, who will decide whether they want to take the risk of legal action and other sanctions.

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