Current laws allow internet casinos to promote their brands but forbid them from offering inducements to gamble. Ms Jowell said adverts in newspapers, on London Underground platforms and on taxis had flouted these regulations.
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Unlike traditional casinos, many Online Casinos are based offshore and are not subject to UK laws. However, the culture secretary said she planned to target the advertisers and publishers in the UK who work with them.
"It's clear that some adverts are breaking the law," Ms Jowell said. "I am not willing to turn a blind eye to this and have agreed with the Gambling Commission that we should crack down on advertisers and publishers who knowingly break the law."
News of the proposed government action comes at a sensitive time for online casino operators, with concern over the prospects for growth in the industry denting confidence among some investors.
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