The new service, called www.bet247.co.uk, lets users gamble on sport, the pools, the National Lottery and Littlewood's own lottery service. BT Cellnet customers can also place bets using a mobile phone for no extra charge.
Littlewoods has decided to carry the tax burden in an effort to set itself apart from other online gambling sites. Non-UK companies -- exempt from British tax laws -- can already offer tax-free betting online.
Littlewoods is calling "for a major change in the tax regulations in this months Budget, which would allow the company to be more competitive internationally."