BRIGHT FUTURE FOR MOBILE GAMBLING SAYS STUDY

The report by Juniper estimates that by 2009, mobile gambling services will generate revenues of more than $19.3 billion, nearly one-third of all mobile entertainment revenues. And that's a conservative estimate. "Given the ubiquity of mobile handsets, and the desire of many [gambling] providers to exploit this, then potentially the resulting sales could be substantially higher," the report says.

Java-enabled graphics, colour-filled screens, technology that invoices on the monthly phone bill, and 3G networking combine to provide a service that is gaining momentum and acceptance.

The report says: "More than 90 percent of the population in the UK and US have at some time played a lottery in its traditional paper form. Coupling this huge market with the immediacy and penetration of the mobile phone is a logical and lucrative proposition."

Sports betting, already popular, is set to surge on the mobile platform. "It may offer the opportunity not only to allow players to place a bet about the outcome of a particular event, but also to dynamically bet through their handset as to the outcome of particular events within the game."

Its success depends on the availability of GPRS or 3G for most mobile users, but at the rate this technology is advancing, this seems likely, the report says.

The online casino sector of mobile gambling may remain a small niche market for the forseeable future as only 14 percent of UK adults partake in casino gaming (including slot machines). While complex graphics will allow consumers to play games such as poker, roulette, craps and black jack, either for fun or for money, "regulatory proscriptions are likely to hinder or prevent the launch of casino-style services in many countries".

The UK gambling bill, which is due for debate in the House Lords next week, has divided industry experts. The Department for Culture, Media and Sport (DCMS) says reform is essential: "Almost all relevant British gambling legislation predates the internet. Nobody had such a powerful communications system in mind when that legislation was being enacted."

Most of the bill, the government says, regulates remote gambling - on mobile telephones, the internet and interactive television - which specialists suggest 800,000 adults per month use.

"Our controls on commercial gambling are being undermined by technology," a DCMS spokesperson says. Once the bill is made law, the Gambling Commission will award remote service providers with licences only after certain conditions are met.

These will include secure billing, and credit and age checks. "For the first time it will be a criminal offence to allow a child to play [remote gambling]," says the spokesperson.

Most resp[onsible gambling organisations are taking the advent of mobile gaming very seriously, and some are in the process of drawing up guidelines for operators, with discussions taking place on how to prevent under-age gambling. One suggestion is the use of number blocks, and advising parents to keep an eye on phone bills.

With mobile gambling set to become even more profitable than online gambling, analysts are urging the industry to play their cards right. "The market for these services is potentially vast," the report says. "It is now up to the service providers to seize the opportunity."