A new report from business journal, Screen Digest, has forecast that the interactive television (iTV), betting, gaming and lottery market for Europe will generate a total of around £2.8bn per year by 2007.

This will potentially provide operators with a gross margin, once winnings are paid out, of £484m.

The UK, Screen Digest predicts, will emerge as the largest single contributor to the European total, generating over £1.77bn in turnover by 2007 and boasting a gross margin for operators of £264m.

France will be the second largest single market, with the bulk of revenues coming from sports betting, although lottery revenues will also be strong source of revenue.

Author of the report, Arash Amel, said: “Whilst many types of iTV service, such as interactive games, advertising and enhanced television applications have proved popular, very few have been lucrative. “To this end, iTV betting, gaming and lotteries offer operators some hope – as well as providing traditional betting and gaming service providers access to a whole new demographic of fresh high yield gamblers.” Details: www.screendigest.com