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The analyst firm estimates that, globally the internet gambling market is worth a cool £5.1 billion a year, with over 22 million players regularly visiting gambling sites.

"We estimate that the gaming sites earn £20 per player per month in the high income countries, which is fairly conservative, and around £5 per month per player from the low income territories," said John Bosnell, senior analyst at Point Topic.

"If you extrapolate from these numbers you get to over £5 billion from all countries in 2007."

Punters' money is spent across a variety of sites including those offering betting on sporting events, online casinos, spread

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betting and poker-specific sites.

Bosnell added that globally some seven per cent of the online population gambles, which in theory leaves plenty of room for the market to grow. However, this growth is being inhibited by national legislation, he noted.

"As many authorities impose strict regulation on what is regarded by many as an addiction comparable to alcoholism the market is subject to external controls that set it apart from other online value added services."

"Online gambling is illegal in China and difficult in much of the US. Potentially major markets like these are currently either out of bounds or only available for certain types of gambling, usually delivered by offshore operators. In combination with irregular changes in regulations in other countries it can be difficult to generate a reliable business model," said Bosnell.

Online gambling will continue to grow in revenue terms, Point Topic predicts. However, with regulatory uncertainties always present and leisure spend under threat in times of global financial insecurity there are certain to be sites that suffer. Growth will slow and insolvency and consolidation will be a dominant characteristic of 2008 and 2009, according to the analyst firm.