Advertising by offshore bookmakers on Teletext was declared unlawful by three British Court of Appeal judges today.
Britain's Customs and Excise department had challenged a ruling by High Court judge Mr Justice Lightman in July last year that bookmakers who operate outside the UK to avoid betting duty were not subject to the advertisement controls of the Betting and Gaming Act.
Section 9 of the Act prohibits advertisements or other documents being broadcast in the UK by offshore bookies.
It was intended to prevent offshore bookmakers, who do not have to pay duty, from soliciting bets from punters within the UK and to protect domestic bookies from unfair competition.
Mr Justice Lightman ruled that the wording of the Act limited the type of adverts to those "in documentary form" and Teletext transmissions were outside this scope.
Today the Vice Chancellor, Sir Richard Scott, Lord Justice Chadwick and Lord Justice Buxton ruled that Parliament did intend to include these types of adverts.
If the Act was understood as not including them, then "its purpose of protecting the revenue and protecting domestic bookmakers from unfair competition by offshore bookmakers will be seriously undermined", said Sir Richard.
The judges allowed an appeal by Customs and Excise against the ruling involving bookmakers Victor Chandler International which was planning to prepare the advertising material on computers at its Gibraltar premises and update Teletext pages remotely from there.
"I can see no difference at all between advertisements inserted in a newspaper or periodical, advertisements recorded on a film and projected on a cinema screen, advertisements recorded on a film and broadcast for viewing on television screens and advertisements stored in electrocnic form and broadcast for viewing on television screens," said Sir Richard.
Barry Faulkner, secretary of the Betting Office Licensees Association, played down the decision as a "hollow victory" for British bookmakers.
He said: "I'm afraid it is rather a case of closing the stable door after the horse has bolted."
"Offshore bookmakers have been able to advertise since last May and the loss of Teletext is but a scratch on the hide of the beast.
"By now, many people already have offshore accounts and word-of-mouth will continue their spread. Indeed, this decision will result in even more coverage and publicity.
"I'm afraid that nothing has really changed."
