Gambling industry watchers believe that a year after the abolition of betting tax the UK is to become the biggest gambling arena in the world. Revenues from bookmakers have soared since the tax on bets was abolished.

Online gambling businesses claim the changes are good for both internet and land-based operators. Plus international gamblers perceive UK gambling sites to be regulated and trustworthy. This has lead to an increasing number of online betting companies moving back to the UK from offshore locations to take advantage.

The world's largest web-based betting company Sportingbet moved its operations from Alderney to the UK in August 2002.

"The UK is setting out its stall to become the gambling capital of the world" says Sportingbet Chairman Mark Blandford. "The UK is setting out its stall to become the gambling capital of the world". Moving the company's base to the UK had provided it with "an open route to market" and the ability to form more alliances with other betting groups. Gambling analysts have suggest a consolidation among gambling companies is the best way to survive. Mr Blandford said the abolition of betting duty and the more relaxed approach to gambling in the UK had made his company more attractive as a partner.

It is not just the online betting market which is burgeoning. Traditional bookmakers have seen a sharp uplift in profits since the betting tax was removed, and are pushing for a new image. Less old men wearing flat caps and more friendly to women.

Major betting group such as Hilton owned Ladbrokes report a 22% rise in profits in summer 2002. While William Hill, the UK bookmaker which is listed on the stock market state profits had jumped 32% in 2001, with a 77% rise in online turnover.

A study from Nottingham Trent university suggests betting turnover will continue to "rocket". The increased activity is being heralded as just the beginning.