PARLIAMENTARY DEBATE
Gaming Machines - 17 May 2018 (Commons/Commons Chamber)
Debate Detail
In October 2016, the Government announced a review of gaming machines and social responsibility measures to ensure that we have the right balance between a sector that can grow and contribute to the economy and one that is socially responsible and doing all it should to protect consumers and communities from harm. Underlying that objective was a deep focus on reducing gambling-related harm, protecting the vulnerable and ensuring that those experiencing problems are getting the help they need. Following a call for evidence, we set out a package of measures in a consultation that was published in October last year. The package included social responsibility measures to minimise the risk of gambling-related harm, covering gambling advertising, online gambling, gaming machines and research, education and treatment.
The consultation ran from 31 October 2017 to 23 January 2018. We received over 7,000 survey responses from a wide range of interested parties and more than 240 submissions of supplementary information and evidence from the public, industry, local authorities, parliamentarians, academics, charities and faith groups. We welcome the responses to the consultation and, in preparing our conclusions, we have reflected on the evidence, concerns and issues that have been raised. We considered the responses alongside advice that we have received from the Gambling Commission and the Responsible Gambling Strategy Board, and we have set out measures on gaming machines, as well as action across online, advertising, research, education and treatment and, more widely, the public health agenda in regard to gambling.
Before I set out the detail of the package of measures, let me say that we acknowledge that millions of people enjoy gambling responsibly and that we are committed to supporting a healthy gambling industry that generates employment and investment. However, over the course of the review I have met many people who have experienced gambling addiction and those who support them, including relatives of those who have sadly lost their loved-ones to suicide as a result of the impact of gambling. In addition, I have visited the incredible treatment services that are there to support addicts. We are clear that gambling can involve a serious risk of harm to individual players, as well as to their families and to the communities they live in, and we must ensure they are protected.
The Government are satisfied with the overall framework of gambling regulation but, as part of our action to build a fairer society and a stronger economy, we believe that when new evidence comes to light, we need to act to target any gambling products or activities that cause concern. It is important to acknowledge that, although gambling-related harm is about more than one product or gambling activity, there is a clear case for the Government to make targeted interventions to tackle the riskiest products, with the objective of reducing harm.
One product in particular, B2 gaming machines or fixed odds betting terminals—FOBTs—generated enormous interest throughout the review process. At consultation, we set out the evidence for why we believe targeted intervention is required on B2 gaming machines, and we set out the options for stake reduction. Although overall problem gambling rates have remained unchanged since the Gambling Act 2005, it is clear that consistently high rates of problem gambling remain among players of these machines. Despite action by industry and the regulator, a high proportion of those seeking treatment for gambling addiction identify the machines as their main form of gambling.
According to the latest available data, across Great Britain 11.5% of players of gaming machines in bookmakers are found to be problem gamblers, and a further 32% are considered at risk of harm. In England, 13.6% of players of FOBTs are problem gamblers—the highest rate for any gambling activity. We are concerned that such factors are further amplified by the relationship between the location of B2 gaming machines and areas of high deprivation, with players tending to live in areas with greater levels of income deprivation than the population average. We also know that those who are unemployed are more likely to most often stake £100 than any other socioeconomic group.
Following our analysis of all the evidence and advice we received, we have come to the conclusion that only by reducing the maximum stake from £100 to £2 will we substantially impact on harm to the player and to wider communities. A £2 maximum stake will reduce the ability to suffer high session losses, our best proxy for harm, while also targeting the greatest proportion of problem gamblers. It will mitigate risk for the most vulnerable players, for whom even moderate losses might be harmful. In particular, we note from gaming machine data that, of the 170,000 sessions on B2 roulette machines that ended with losses to the player of over £1,000, none involved average stakes of £2 or below, but losses of that scale still persist at stakes of £5 and £10.
The response to our consultation has been overwhelmingly in support of a significant reduction in B2 stakes. The majority of respondents to the consultation submitted opinions in favour of a £2 limit, indicating strong public approval for this step. I am grateful for the cross-party work on this issue, and I pay particular tribute to the hon. Member for Swansea East (Carolyn Harris) and my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), the latter having been a very strong supporter of change when he was in government.
Elsewhere in the industry, we are, for the time being, maintaining the status quo across all other gaming machine stakes, prizes and allocations. We have, however, agreed to an uplift for stakes and prizes on prize gaming, which we consider to be sufficiently low risk.
We are aware that the factors that influence the extent of harm to a given player are wider than any one product, and include factors around the player, the product and the environment. The response therefore also sets out action on: increasing player protection measures on other gaming machines on the high street; increasing protections around online gambling, including stronger age verification rules and proposals to require operators to set limits on a consumer’s spending until affordability checks have been conducted; doing more on research, education and treatment of problem gambling, including a review by Public Health England of the evidence relating to the public health harms of gambling; enhancing protections around gambling advertising, including a major multimillion pound advertising campaign led by GambleAware on responsible gambling, to be launched later this year; and filling the gaps in evidence on advertising and harm, with substantial new research commissioned by GambleAware on the effects of gambling advertising and marketing on children, young people and vulnerable groups.
Looking ahead, we will also be considering the issue of 16-year-olds playing national lottery products as part of the next licence competition for the national lottery. We aim to gather evidence on this issue with sufficient time to consider it fully ahead of the next licence competition. Changes to the B2 stake will be effected through regulations in Parliament. The move will need parliamentary approval and, in recognition of the potential impact of this change for betting shops, we will also engage with the gambling industry to ensure it is given sufficient time for implementation.
In conclusion, we want a healthy gambling industry that contributes to the economy, but also one that does all it can to protect players and their families, as well as the wider communities, from harm. We will work with the industry on the impact of these changes and are confident that this innovative sector will step up and help achieve the necessary balance. I commend this statement to the House.
At the outset, let me warmly congratulate the Minister on her decision today. I am not going to be mealy-mouthed about it: we are absolutely delighted that the Government have decided to deliver a Labour party manifesto pledge. Today, we have had this on FOBTs and yesterday we had the railways taken back into public ownership—it is just a shame we could not make it three with the Leveson inquiry earlier in the week. I genuinely believe this is a great moment; it is the right decision and I applaud the Minister for making it. Having been in government, I know how tricky it is to reach a consensus on these complex regulatory issues, and she deserves recognition from those in all parts of the House for getting this through. We should also recognise that this is a victory for the many people in this House who have led this campaign, particularly my friend, colleague and fellow deputy leader, my hon. Friend the Member for Swansea East (Carolyn Harris), who has fought tirelessly for this, alongside other Members, including the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), whom I also regard as a friend.
During this process, we have seen how some parts of the gambling industry have stood in defiance of Ministers, civil servants, parliamentarians, clinicians and other professionals, and have sought to delay at every turn common-sense decisions that would have given comfort to those who have been afflicted by these machines. There is a lesson in this: if the UK is to retain its reputation for innovative, light-touch regulation and responsible gambling, the wider industry needs to start taking its responsibilities and obligations to players seriously. Any Government, whatever their political hue, will be deeply concerned about the situation we find ourselves in: we have 430,000 gambling addicts; 2 million vulnerable players at risk of developing an addiction; and 25,000 young people who gamble every week. It is incumbent on the industry now to show the Government and Parliament its progress on how it shoulders these responsibilities and uses its £13.8 billion a year yield to deal with harms created by gambling. Across the industry we have global leaders in innovative online gambling products who are seeking solutions to these issues through investment and technology. However, too many household name companies have belligerently denied the facts in front of their noses, so our message today is clear: clean up your act or a future Labour Government will do it for you.
In that spirt of unity and cross-party co-operation, I would like to make a few suggestions to the Minister, if I may—[Interruption.] I say that genuinely; there is no need to laugh. We understand there are concerns about revenue reduction, and the Minister has suggested she will increase remote gaming duty to cover this. Would it not be more appropriate to close the loophole that allows British online gambling companies based in Gibraltar to avoid paying tax? Secondly, the Government have chosen not to implement a statutory levy for research, education and treatment at this point, but there was a significant call for that, including from some gambling industry leaders. So will she think again on it, in order to guarantee that resources are available for treatment? Thirdly, we all want addicts to access the most appropriate treatment, so will the Government please start to collect proper data in that area? I have asked a number of questions to Ministers about how many addicts are receiving treatment on the NHS and how much treatment costs the NHS, but we have been told time and time again that the Departments do not hold or collect that data. I am sure we all agree that if we are to understand and better treat this problem, we need better data.
Fourthly, some of the largest companies affected by this decision have argued for restrictions on betting advertising for football in particular. Given that that is also the No. 1 concern expressed by parents, it seems to me that the Government have been hasty in ignoring it.
Finally, our view is that the 2005 Act is no longer fit for purpose. We need a new gambling Act that is fit for the digital age. How draconian that new Act might be is dependent on how the industry chooses to engage with Parliament. We call on the innovative and responsible new leaders of the gambling industry to show us that they take their obligations seriously, and to work with us to alleviate problem gambling.
In conclusion, cutting the maximum stake on FOBTs is a big step in the right direction, but it is just one part of the puzzle. In praising Ministers, I urge the Government to use the new spirit of consensus to introduce a new gambling Act, fit for the purposes of the digital age.
The hon. Gentleman raised several key points, starting with the closing of loopholes for operators in Gibraltar. My right hon. Friend the Secretary of State reminds me that it was his private Member’s Bill on offshore gambling that started the process that led to our changing the legislation to require Gibraltar-based operators to pay their gambling taxes to the Exchequer, so I feel we have already dealt with that issue. While I am referring to the Secretary of State, may I acknowledge his work to progress the response to the review? His support on this issue has been phenomenal and I am incredibly grateful for the work he has done.
We have taken the decision not to introduce a statutory levy at this point. The hon. Gentleman will be aware of the comments I have made at various events, when I have referred to this situation as the last-chance saloon. We hope that the work we are doing to reduce FOBT stakes will reduce the vulnerability and the harm, but that is not to say that we do not need to improve treatment services. We are working incredibly hard with the Department of Health and Social Care and Public Health England to gather together the evidence that the hon. Gentleman cites, so that we can get the right treatment services in the right places. We recognise, as do colleagues in the Department of Health and Social Care, that treatment services are currently limited, and have perhaps been the Cinderella service in the addictions sphere. We are working on that and have had some great advice from across the clinical spectrum on what we need to do.
On advertising, I fully understand the hon. Gentleman’s concerns, and those of others who have raised the issue. Since the publication of the review we have made excellent progress on strengthening the rules on gambling advertising, including the publication by the Committee of Advertising Practice of tough new guidance on how to protect the vulnerable. From June, a responsible gambling message will appear on-screen throughout all TV gambling adverts, not just at the end, and the Gambling Commission has already consulted on expanding the sanctions for breaching the advertising code. There is much more to come, including the advertising campaign to which I referred, as well as the work to look into how we can protect children that will be done later this year. We are also going to have some research on the effect of marketing and advertising on children and young people. Although we may not have made that tough decision now, it is certainly not a closed issue.
I welcome the announcement by the Government to reduce the maximum unit stake on FOBTs to £2 per spin. This is something that I have strongly campaigned for in my role as vice-chair of the all-party group on FOBTs, alongside other MPs, such as the extremely hard-working chair of the all-party group, the hon. Member for Swansea East (Carolyn Harris), and the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith).
I praise the Minister for her action on this issue and her acknowledgement of what harm these machines do. I do not believe that we would have achieved this outcome without her continued efforts in persuading her colleagues of the need for action on gambling-related harm.
Gambling-related harm is an issue that rightly continues to receive more attention. It is vital that the Government continue to listen to the many people, such as Dr Henrietta Bowden-Jones, and the organisations that are highlighting how gambling is becoming more prevalent, especially among young people. According to the Gambling Commission’s statistics, more than half a million children are gambling every week. Therefore, I am glad to hear the Minister say that gambling-related harm is about more than any one product or gambling activity and that the Government intend to enhance protection around gambling advertising, including a major multi-million pound advertising campaign. I welcome the fact that this campaign promotes responsible gambling.
I acknowledge the comments that the Minister made earlier in response to the Opposition that education to prevent gambling-related harm has to be funded. I believe that to fund such education, to promote social responsibility and to safeguard vulnerable groups, the Government should introduce a statutory levy on bookmakers to fund GambleAware and its activities to tackle gambling-related harm.
I welcome today’s announcement and hope that common sense and cross-party collaboration can continue in this area. I ask the Minister to work with the Scottish Government on any legislation that may already be devolved, or may be more appropriate to be devolved, to ensure the success of this proposal. Hopefully, this can be a platform to implement more legislation to help those affected by gambling and those who may become problem gamblers.
As I said earlier, we have ruled out a statutory levy at this point, but not forever. We have seen from the voluntary levy a 16% increase in the amount of money going into research, education and treatment, and we hope that from the measures that we introduce today, we will reduce the harm and that we will therefore see a significant rebalancing of the income from the levy with the treatment and the services.
On the hon. Gentleman’s final point, I had the pleasure of speaking with the Minister from the Scottish Government, and I have assured her that we are very happy to work closely together in respect of the devolved legislation that may or may not be required.
While we recognise that there may well be an impact on jobs, we will work closely with colleagues across Government and with partner organisations to ensure that we support members of staff. We are seeing a shift in the way that gambling is done, and there has been significant consolidation within the industry. This industry is changing, regardless of today’s announcement, but we want to ensure that we support the safety of staff.
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