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The US crackdown on online gambling is a “new prohibition”, which is likely to fuel a rise in fraud and exploitation, said Ms Jowell, the UK culture secretary.

“Broadly speaking we have three choices: you can prohibit, like the US, do nothing or regulate, like we have”. said Jowell.

She added: “America should have learnt the lessons of prohibition. The Volstead Act [which brought in prohibition in 1919] was meant to stop alcohol from causing harm, but in practice it forced otherwise law-abiding customers into the hands of the bootleggers. If it goes wrong the risk of exploitation and fraud will increase dramatically.”

Ms Jowell will be hosting a summit on online gambling next week, with politicians from 30 countries discussing how to achieve international regulations.

Bottom line is, once again, regulation works better than prohibition.