A FRESH dispute is set to break out between the government and the country’s betting and gaming companies over restrictions on television advertising.

Bookmakers are angry that the government wants to introduce a ban on any gambling-related television advertising before the 9pm watershed.

They argue that the plan is too restrictive because it would prevent them from running commercials during many sports events.

The watershed proposal came up during secret talks between the Department for Culture, Media and Sport (DCMS), the ministry responsible for the gambling act, and representatives of the leisure industry.

The round of talks was prompted after James Purnell, the culture secretary, disclosed two weeks ago in an interview with The Sunday Times that all aspects of the government’s gambling act, which is due to come into force on September 1, would be reviewed. He said this would include looking at the rules on advertising. The act makes it legal for the first time for casino operators and bookies to advertise on television.

The gambling industry has presented a code of conduct on advertising to the government but the DCMS believes that it should be stricter.

The code stipulates that it will not produce ads that show people who look under the age of 25 and that commercials will carry the website address for an organisation that helps to tackle problem gambling.

But the government wants the industry to accept the watershed.

Bookmakers think the idea is illogical given that gambling companies can sponsor sports programmes, or have their brands seen on television by buying perimeter advertising at venues or by sponsoring teams.

The DCMS declined to comment on the specifics of the talks with the gaming industry but a spokesman said: “Discussions are ongoing and nothing has been finalised.”

Gambling bosses have been angered by the government’s approach to the deregulation of the industry. They argue that plans have been watered down, and there remains uncertainty about what the regime will be like.

One executive said the industry had been used as a “political football” while another said Britain had become a “laughing stock” because of the measured way other countries had relaxed their attitudes.

Bosses also fear that a study of the prevalence of gambling – originally intended to set a benchmark for the level of gambling activity, which would then be available for comparison purposes in three years – will now be used to show a rise in problem gambling, and provide an excuse to derail large parts of the act. Fitzdares, the upmarket bookmaker backed by Ben and Zac Goldsmith, has got off to a good start. Accounts to be filed soon will show that in the 18 months since launching in January 2006, the firm made gross profits of £5m on turnover of £86m.

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