Reuters
Tuesday, June 16, 1998; 12:56 p.m. EDT

LONDON (Reuters) - Over $10 billion will be gambled online by 2002 as operators take advantage of the huge audience reach and cost savings of the Internet, market analyst Datamonitor said Tuesday.

''Casinos, lotteries and sports books dominate the new market, allowing customers with an Internet connection and a credit card to gamble literally anywhere in the world,'' Datamonitor said.

Online gambling revenues in 1998 are expected to be $535 million, rising to $955 million in 1999 and $2.3 billion by 2000.

''Online gambling turnovers have the potential to dwarf those of other interactive services, tapping into an existing traditional gambling market valued at over $700 billion in Europe and the U.S. alone,'' Datamonitor said.

Datamonitor said concerns about the legality of gambling online in the United States would help Europe gain market share and drive up its revenues to $3 billion by 2002.

The majority of online gamblers are U.S. citizens, but most services are operating from places such as the Caribbean, Europe, Australia and South Africa.