Fears rise of British betting crisis as ministers push on with new casinos

Fears are rising that Britain is in the grip of an out-of-control gambling spree. As the shortlist of local authorities vying to host one of 17 new casinos was revealed yesterday - including at least one "super-casino" - campaigners warned that the liberalisation of betting laws could lead to an explosion in problem gambling and family misery.

Yet despite the mounting concern, the amount the nation spends on betting has increased sevenfold since Gordon Brown cut betting tax in 2001, with £50bn spent last year alone.

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Bookmakers, meanwhile, are preparing for a bumper summer of betting on sport and reality television shows.

Big Brother is one of the fastest-growing gambling markets and about £1.3bn is likely to be wagered on the World Cup alone. The football tournament in Germany next month is expected to generate more gambling money than any previous event.

One charity, Gamcare, reported this week a 40 per cent rise in the number of people seeking help for problem gambling. Among the reasons is the advance of new technology. The internet has made it easier to place a bet than ever before. Increasing amounts of disposable income have also helped fuel the unprecedented growth.

Experts say online poker, betting exchanges and the emergence of spread-betting are encouraging many people, especially women, to gamble for the first time. One result has been a boom in internet gambling start-ups. Betfair, the betting exchange operator founded only six years ago and which controls the lion's share of the online market, is now valued at £1.5bn.

The National Lottery has become the UK's most successful brand. It reported its highest-ever sales this month. The game is said now to be played by 70 per cent of the population each week. Campaigners say television programmes such as Noel Edmonds' afternoon show Deal Or No Deal and Who Wants To Be a Millionaire? reflect society's growing passion for gambling.

But the issue of the new casinos is galvanising opposition. The casino industry is seen as one ripe for growth by operators, who want to give the industry a makeover and encourage new customers with restaurants, hotels and other facilities. At present only 3 per cent of the population regularly visit casinos, but their expenditure accounts for nearly 10 per cent of total bets.

The Salvation Army is in the forefront of opposition and called on the Casino Advisory Panel, which is overseeing the process of selection on behalf of the Government, to implement urgent measures to limit the social impact of new venues.

The Gambling Act 2006 will allow eight "small", eight "large" and one "regional" or "super-casino", but some industry sources believe the final number of super-casinos could be anything between five and 12 as Tessa Jowell, the Secretary of State for Culture, bows to the demands of local authorities desperate for the regeneration and employment potential offered by the roll-out. Supporters say new casinos will bring millions of pounds and thousands of jobs into deprived areas.

Under the new legislation even the smallest of the new complexes will be much larger than those now operating. The biggest will allow a maximum of 1,250 unlimited jackpot fruit machines where payouts can exceed £1m. Blackpool, the Millennium Dome, and Manchester are favourites to win the super-casino licence, although they are joined on the shortlist by the new Wembley Stadium, Cardiff, Glasgow, Newcastle upon Tyne and Sheffield.

A further 31 local authorities are still in the running to host the remaining 16 venues. Ms Jowell insisted yesterday that the new gambling legislation was the "most protective in the world". She added that the Government must "modernise and update" the gaming laws which have been unaltered by Parliament since 1968. "The new gambling legislation gives me a number of reserve powers in the event that problem gambling does begin in a way that causes concern," she told Radio 4's Today programme.

Vic Poke, chief secretary of the Salvation Army, said there needed to be more immediate safeguards. "The onus is on local authorities and operators to ensure they have taken all necessary steps to identify and address the social consequences of a regional casino in their community," he said.

An NOP poll for the Salvation Army revealed that more than half of those surveyed did not want a new casino near to where they lived, and nine out of 10 felt there was no need for extra venues. A spokesman for the Methodist Church, also calling for tighter regulation, said: "There are about 370,000 problem gamblers in the UK and we don't want to see anything that increases that number."

According to Mark Griffiths, professor of gambling studies at Nottingham Trent University, pressure to expand gambling in the UK has come not from the public but the industry. Attempts to return to the past could prove problematic for the Government, he warned. "Gambling is a voluntary form of taxation although people don't see it as such. By expanding gambling the Government can bring in more money. There has been no great public push to liberalise it. It has all come from the gaming industry and the Government. But if you tried to reverse it there would be uproar," he said.

Jonathan Sellers, 35, greenkeeper: 'I was betting on anything I could'

Jonathan Sellers' gambling problem started in the most humdrum circumstances. "It was raining and I was waiting at the bus stop next to an arcade. I didn't want to get wet and I thought a pound wouldn't matter," he remembers. But for the 35-year-old green keeper from Brighouse, West Yorkshire, his impulsive decision was to have highly destructive ramifications. Gambling was to dominate his life for the next nine years. During this time he believes he gambled away up to £150,000. "It progressed very quickly so that I was betting on anything I could. But as it got worse and worse it started to make me very depressed. My temper got very bad and I began getting angry at the slightest thing. I ended up kicking furniture and throwing things around."

There were wins. He recalls on one occasion scooping more than £3,000 at a poker table. But he blew the lot, often in minutes. Crisis point came at Christmas six years ago. Leaving work with £450 in wages and bonus he lost the lot in just 10 minutes. "I had no money left for presents - it was all gone." Deep in despair Mr Sellers attempted suicide by throwing himself in front of a bus. Luckily he lived. With help from family and friends and the Salvation Army he has given up gambling.

Dave Ulliot, card player: 'I'm a nasty bastard'

Poker has been good for Dave Ulliot. The former jeweller and pawnbroker from Hull is now known to millions of card players around the world as The Devilfish. He earned the sobriquet after beating the legendary Men "The Master" Ngyuyen who compared him to the Chinese culinary delicacy of that name, which unless properly prepared can kill. He now sports the name on two ostentatious gold rings. "I play the game pretty aggressively. I am a nasty bastard," says Ulliot. Since turning professional he has racked up $3.5m in tournaments, making him the richest British player ever. Fame came in 1999 when he won the first Late Night Poker Grand Final, by which time he was playing full-time in Las Vegas.

Gambling Nation

£50bn Amount spent on gambling in the UK last year

370,000 Number of problem gamblers in the UK

700,000 Anticipated number of problem gamblers within five YEARS

1 Number of super-casinos planned by government

1,250 Number of unlimited jackpot slot machines at super-casino

23,000% Rise in online betting exchange revenues since 2001

£80 Equivalent spent for each man, woman and child

41.3% Rise in people seeking help for gambling problems last year

154 Number of new lottery millionaires last year

£300m Amount of local investment generated by super-casino

3% Proportion of UK population that goes to casinos

17 Number of new casinos planned

700% Amount the average spend has increased over the past five years

£11bn Amount spent each year on gaming machines

£1.5bn Amount the lottery will contribute to the London Olympics

2,500 Number of new jobs created by super-casino

£1.3bn Betting on the World Cup