According to the Report, the concept of on-line gambling is not restricted to gambling over the internet, but also includes other media that use a telephone connection such as interactive televisions and mobile phones.
The main obstacle to on-line gambling under current UK legislation is a requirement that gambling must only take place within a designated gaming room and in the presence of the gambler. This means that on-line gambling sites may not be set up in the UK, although this does not prevent UK residents from gambling on-line via sites based overseas.
The Report considers the situation in the US and Australia, where measures have already been taken to control on-line gambling. It concludes that by regulating on-line gambling sites based in the UK punters will be assured of fair play, receiving winnings and the integrity of web sites dealing with their personal data.
In order to ensure on-line gaming sites in the UK can be more easily regulated, the Report strongly suggests that the Gambling Commission should only grant licences where the site is operated by a UK registered company, using a server located in the UK and a site registered under a UK web address.
Following the publication of the Report, a consultation period has begun that will end on 31st October 2001. The government expects to produce a report on these findings in early 2002.