Gambling websites that use adverts inducing customers to gamble face prosecution, the UK's Secretary of State for Culture Media and Sport, Tessa Jowell, warned yesterday, promising a crackdown on illegal advertising.

Until the Gambling Act 2005 comes fully into force, online casinos and poker rooms are not permitted to operate within the UK. Many operate lawfully from offshore locations, and they are allowed to advertise their services in the UK – so long as the adverts do not offer any incentive, inducement or encouragement to gamble.

But there has been an increase in illegal advertising by online gambling operators, and the Government has decided to take action.

Speaking at the British Casino Association AGM yesterday, the Secretary of State warned that she was not prepared to turn a blind eye and had “agreed with the Gambling Commission that we should crack down on advertisers and publishers who knowingly break the law."

She added, "We will issue them with new guidance and I am putting them on notice that we won't hesitate to ask the Crown Prosecution Service to act."

Offenders could face fines of £5,000 and up to two years in prison if found guilty.

Online gambling – and gambling in general – is set for a shake up in September 2007, when the Gambling Act comes fully into force.

The new law is designed to protect children and vulnerable people in the face of a sharp rise in gambling at internet casinos and on roulette machines in bookmakers.

The Act provides the Secretary of State with powers to restrict future gambling advertising should self-regulation by the advertising industry prove insufficient. It also created a new regulator – the Gambling Commission – which will police casinos, bingo halls, gambling websites and bookmakers. Backed up by new powers it will ensure gambling is socially responsible, fair and crime free.

The Gambling Commission was formally launched on 1st October.

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