With reports of a fourfold profit increase from the Scandinavian-facing online operator Unibet Group Plc and a 7% rise in gaming revenue from 888 Holdings, the moves in the United States to ban online gambling that caused fortunes to fall seem to be less than effective in the longer term. Even the US group known as Americas Watchdog has said that the 2006 Unlawful Internet Gambling Enforcement Act has had little effect on online casinos.

Following its own investigation the consumer advocacy group declared that it was business as usual and that US online gamblers probably numbered millions of all ages, genders and races. It also suggested that lobbying for amendments to the Act should start, stating that there would be three positive effects from online casino licensing – a regulated gaming environment for consumers; tax dollars and better law enforcement for other criminal activities; and the effective closure of off-shore gaming websites.

Online gambling is increasing and many countries have realised that prohibition is unlikely to work. Regulation and taxation is seen as a better way to manage the activity and ensure that customers are protected. Online casino games, poker and sports betting are all showing increases, and gaming on mobile phones is also growing. The UK charity GamCare is appealing for mobile phone operators that supply online gaming to register as gambling companies and fund helplines.

Further growth in online gambling is expected, with the market in Europe set to increase by up to 30% in the next year. Many online gaming companies, particularly the ones with stock exchange listings, have turned their attention away from the huge US market and are looking for new customers in Europe and Asia. For the online gamblers in the US there are still plenty of off-shore companies happy to take their bets. (E-02.14.07)

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