A case could be made for this. It might be argued, for instance, that, so far, British residents do not seem to be seeking to make extensive use of offshore gambling alternatives and there is little to suggest that those who are doing so are having any problems which raise real issues of concern. Further, the other options are difficult and will require primary legislation.

However the Board does not believe that this remains a sustainable long-term option and is not aware of anyone who seriously suggests it is. As shown above, the current legislation is inconsistent in its application, for instance by permitting some types of Internet gambling sites to be established here but not others and by permitting residents here to game on Internet casinos abroad whilst preventing British licensed operators establishing sites here. The global Internet gambling market already appears substantial and few doubt that it will grow, perhaps massively. The British population has a propensity to gamble and is likely to be keen to utilize opportunities provided by the Internet. While British operators continue to be forbidden to establish sites here, those who game will turn to offshore sites with resulting losses of revenue and tax. There will be no means of ensuring that such sites are being operated properly and fairly, with adequate protection for players. In short, there is the prospect of proliferation of uncontrolled, unregulated and untaxed gaming by people in their homes here. That is clearly not desirable.

The question is whether the need for action is urgent and this was one of the matters on which the Board invited further comment in its letter of 26 January 2000 (Annex C). Industry respondents argued strongly that it is. The gist of their argument can be summarized as follows. Gambling on the Internet is developing rapidly. British companies are being denied unnecessarily an opportunity to share in this growing market. Instead, British gamblers are being driven to use offshore operators with no guarantees or proper protection. If the market develops and matures without British involvement, it will be too late to recover and make an impact. Inevitably, British companies will look for overseas opportunities themselves (and, as indicated above, this is starting to happen) and once established abroad they will not return later. In >>