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Online gambling has more than doubled in the last five years, an independent research review has found.
There are now nearly one million regular online gamblers in Britain, making up almost a third of the 3.3 million internet gamblers throughout Europe.
The review, published by the Government, was commissioned ahead of the first international online gambling summit held today.
It reveals that online gambling has fast become a multi-billion pound industry, with Europe's regular gamblers staking around £3.5bn a year, an average of £1,000 per person.
There are now 2,300 internet gambling sites across the world, with a large number concentrated in a few key nations - Antigua has the most, with 537 sites, whilst Costa Rica has 474.
Here in Britain there are 70 online betting sites, although none is dedicated to gaming - defined as casino games such as poker, blackjack or roulette.
And these sites are not just used by men. Women are becoming increasingly important to the online gaming industry - during the World Cup this summer, around 30% of those visiting key UK-based betting sites were female, the research revealed.
Culture Secretary Tessa Jowell said the research proved there is a need to secure international support for agreed standards of regulation of online gambling.
She said: "Of course, we also want online gambling companies to come onshore. We will welcome them here because we believe that by allowing those who want to gamble to do so over the counter, not under the counter, is the best way to protect children and vulnerable people and keep out crime.
"But we won't take part in a regulatory race to the bottom. On the contrary, if companies do come to the UK it will be because 'regulated in the Great Britain' will mean a website is subject to the most stringent controls and social-responsibility requirements anywhere in the world."
The research was carried out before the recent US decision to ban the processing of payments for online gambling websites.
"It makes recommendations for greater international co-operation, including harmonised regulations to curb problem and youth gambling; co-operation with the gambling industry; and more research into the extent of participation in remote gambling.
Copyright Press Association 2006
