Zetters is planning to reinvent itself as an international online financial spread-betting operation after a decline in its core football pools business.

The company is understood to have applied to the financial services authority for regulatory clearance to compete with bookies IG Index and City Index by offering punters the chance to bet on a range of stock market prices. Chief executive Tony Wollenberg said Zetters was also talking to potential partners in the US and Far East about tapping "vast" overseas gaming markets.

He hopes that making Zetters available through the internet, digital television and handheld web access devices will attract people who do not use betting shops.

Bets placed on share price changes, interest rate moves and index levels are among the fastest-growing areas of the bookmaking industry. That has led IG Index to seek a £115m flotation next month.

However, Mr Wollenberg warned that Zetters might relocate to an offshore tax haven if the government refused to reduce the betting levy.

The declining popularity of football pools was reflected in full-year results to March 31. Turnover fell by £5m to £10.42m, pre-tax profit slipped from £1.54m to £1.14m.

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