PARLIAMENTARY DEBATE
Gambling and Lotteries - 8 December 2020 (Commons/Commons Chamber)
Debate Detail
The Gambling Act has been the basis of virtually all gambling regulation in the UK since 2005, but a huge amount has changed since then. The internet and the prevalence of smartphones have transformed the way we work, play, shop and gamble. We can now gamble anywhere at any time. It is time to take stock of the significant changes of the last 15 years and to pull our legal and regulatory framework into the digital age, so today we are launching the first part of our comprehensive review of the Gambling Act. It will be a wide-ranging and evidence-led look at the industry, and it will consider the many issues that have been raised by parliamentarians and many other stakeholders. We want to listen, gather the evidence and think deeply about what we need for the next decade and beyond.
Nearly half the adult population gambles each month and, for the majority of people, gambling is a fun and carefree leisure activity. It is also a sector that supports 100,000 jobs and pays nearly £3 billion a year in taxes. However, we know that, in some cases, gambling can cause significant damage to people’s lives, including mental health problems, relationship breakdown, debt and, in extreme cases, suicide. We must ensure that our regulatory and legislative framework delivers on a core aim of the 2005 Act: the protection of children and vulnerable people in a fair, open and crime-free gambling economy.
This review will seek to strike a careful balance between giving individuals the freedom to choose how they spend their own money, while protecting vulnerable people and their families from gambling-related harm. We will look at whether we should introduce new protections on online products and consumer accounts, including stake and prize limits, and how we can ensure that children and young people are protected. We will also consider gambling advertising, including sports sponsorship, while taking into account the extremely difficult financial situation that many sports organisations and broadcasters find themselves in as a result of covid. We will look at redress arrangements for consumers where, for example, an operator has failed to step in to help a problem gambler. We will consider barriers to effective research on the causes and impact of problem gambling, and we will consider whether the Gambling Commission is keeping pace with the licensed sector and can effectively deal with unlicensed operators. We will also ensure that we have a fair playing field for online and offline gambling.
Many of those areas were highlighted in a thought-provoking report by the House of Lords Select Committee. That report and others have helped to inform our thinking and our desire to ensure that the review is wide in scope, and we are publishing our response to the Lords report alongside the review. I also know that Members across the House have seen evidence from their constituents about the harm that gambling can do to individuals and their families. We want to hear from the people whose lives have been affected by gambling, as well as from academics and the gambling industry, so that we have the evidence to deliver real and lasting change. We are therefore starting the review with a call for evidence, which will run for 16 weeks and is now available on the gov.uk website.
While this review is an opportunity to consider changes for the future, we are also taking action now to protect people from gambling harm. The Gambling Commission will continue to build on recent progress to strengthen protections as the industry regulator. Our ban on gambling with credit cards came into force in April, and new tighter rules on VIP schemes were implemented at the end of October. Further work is also in progress on the design of online slot games, as well as on how operators identify and intervene to protect customers who may be at risk, including through affordability checks. We have also just closed a call for evidence on loot boxes, and the Department of Health and Social Care will keep working to improve and expand treatment for problem gambling.
A key priority is ensuring that we have the right protections for children and young people and, again, that cannot wait. To that end, we are also today publishing a response to the consultation on the minimum age to play national lottery games. Since its launch in 1994, the national lottery has been a tremendous success, raising more than £42 billion for good causes. Since 1994, its games portfolio has evolved significantly, while consumers have shifted towards online play and instant win games such as scratchcards. While evidence shows that most 16 and 17-year-olds do not experience gambling-related harm from playing the national lottery, some recent studies point to a possible correlation between national lottery play at 16 and 17 and problem gambling in later life. Moreover, few other countries allow 16 and 17-year-olds to purchase their national lottery products.
Protecting young people from the risk of gambling-related harm is of paramount importance. We have therefore decided to increase the minimum age of the sale of all national lottery games to the age of 18. We are keen to make this change at pace while being acutely aware of the need to give retailers and the operator time to ensure a smooth transition. The legislative change will therefore come into force in October 2021, but we have asked that, where it can be done sooner, it is—for example, online. So under current plans, national lottery sales to 16 and 17-year-olds will stop online in April 2021.
The review we are starting today will be an opportunity to look at the wider rules on children and gambling, and to make sure they are suitably protected across all forms of gambling. I know many colleagues will welcome the launch of this review today and will be pleased to see us living up to our commitments in the 2019 manifesto. We intend to be broad, thorough and evidence led, so that we can ensure our gambling laws are fit for purpose in the 2020s and beyond. I commend this statement to the House.
This is only the beginning of the process to get the reforms that we need on gambling, so it is disappointing that the Government have taken more than a year to launch this review, during which time we know there are still people who may be suffering. Gambling addiction is highly serious, and we know that we have not got the right support in place. So the delay has a cost, which is why we need to move forward together and swiftly now. What we need is fit-for-purpose regulation which can keep up with the changing nature of gambling online, both on the smartphones that we all carry and in the environment around us all the time. We believe that the law in this area should be approached from a public health perspective to protect the vulnerable and particularly children and young people—I think the Minister would accept that—but to allow others who choose to do so to gamble safely. The Minister mentioned that UK gambling legislation is some 15 years old and it is hard to quantify the technological change that we have all experienced during that time. If somebody had told me in 2005 precisely what the phone in my pocket would have the capacity to do by this point, even I would have been shocked. We need to bring the legislation up to date. There is not a moment to lose.
Millions of people enjoy gambling in a safe way, but, as I have said, given the speed of change, vulnerable people should be protected. Age verification must be taken seriously.
The pace of technological change has wider ramifications. Apps, games and online advertising within apps have shown the dangers when we are not able to future-proof legislation. Will the Minister confirm that the review will address not just problems that we know of now, but that we will use the opportunity to try to anticipate future changes? That will not always be possible, but we should at least attempt to do so.
In the review, we would like the Government to adopt the following approach, particularly in considering the legislation that we need. We know from the pandemic that public health must come first, and that is my first question to the Minister. Will he confirm that we will be taking a public health approach in the review?
Secondly, of course people are free to choose what they wish to do in a free country, but will the Minister confirm that the Government take their responsibility to protect people from harm seriously and that the review will attempt to quantify that harm so that we can target the right measures effectively to reduce it over time?
Thirdly, the legislation must be evidence-based. I do not think anyone in this House is any longer a sceptic about experts, but just to make sure, could the Minister confirm that public health experts will be able to contribute fully and transparently, so that people will be able to understand the evidence that the Government rest on?
Fourthly, all towns across the country should be able to enjoy the benefit of having a sports club at the heart of their community. Many rugby league clubs, football clubs and other sports have long-standing relationships with gambling companies. Will the Minister take those relationships into consideration? We are expecting another review—a fan-led review of football—and I do not think it makes a lot of sense to commence the gambling review without that football review alongside it. Where the issues interconnect, we can handle them both together. Will the Minister bring forward the fan-led review of football to start without further delay?
Finally, on consumer protection, companies operating for financial gain should not be able to exploit anybody, particularly the young and vulnerable, so will he make sure that consumers have better rights in this area? Will people have access to their own data—I am thinking of where people are targeted online with adverts and so on? Will the review also look at the unlicensed operators, who are one of the most worrying aspects in this area?
We welcome the review. We want to see it happen in a way that is collaborative across both sides of the House and among all stakeholders in the country, because that is the best way to make sure that it is a success. Many people in this country enjoy gambling. Everybody has the right to spend their own money enjoying themselves. However, where a harm is clear, the Government have a duty and responsibility to tackle it.
On timing, it is important to recognise that we do not wait for the periodic reviews. We are not waiting for necessary future legislation. We have acted and will continue to act as and when necessary. Just this year, for example, we banned the use of gambling with credit cards. We have made further restrictions on VIP schemes. There is the mandatory participation in GAMSTOP, for example, and the announcement today about the changes with the national lottery is testament to the fact that the Government are willing and able to take action. There was also action just last year on fixed-odds betting terminals.
In terms of future-proofing, no Government can guarantee to future proof, but certainly the intent is for the scope to be broad and wide, recognising, for example, changes in technology and what that could mean for using information intelligently to identify potential problem gamblers, as well as looking at the scope of the Gambling Commission itself.
In terms of evidence, we are looking for evidence from all sources, including all those that the hon. Lady suggested—from health and from academics. We welcome the participation of anybody willing and able to participate in this review with evidence.
The hon. Lady made an important point on sport. As sports Minister—we both cover sport—I know the challenges that the sporting sector faces, so we need to make sure that any changes are proportionate. Indeed, as she knows, we intend formally to kick off the football governance review as soon as possible. Informally, it has already begun. Other areas such as redress and the black market will absolutely form part of the review.
The loot-box issue is being addressed. We have issued a call for evidence, which concluded on 22 November, and we will introduce recommendations shortly. On the lottery changes, as I say, we have had conversations with key stakeholders. We want to move as soon as possible. The target date of 1 October is the latest date for changes. We want to bring the online changes forward as soon as possible, but there are notifications, technology changes and logistical considerations, as well as training considerations. It is not the kind of thing that can occur overnight, but we have had productive conversations with the operators to make sure that we can implement the measures as soon as possible.
In the time allotted to me, may I thank the Minister for making it clear that the evidence-led inquiry will include those who have been harmed and the families of those who have lost someone to suicide as a result of gambling addiction? Lived experience is crucial to inform the review. However, I am concerned that the Minister has caveated his concerns about advertising with the financial difficulties faced by sports organisations and broadcasters. The reduction of harm must be front and centre in the review, and must not be undermined by the eye-watering financial demands of premier league football teams.
On the national lottery, there is no excuse for delaying the enforcement of the increased age limitation offline for 10 months. May I ask that the timescale is revisited or at least justified? I did not read anything in the statement about the voluntary levy. We need a statutory levy that funds research, education and support. That money should be paid to the UK and devolved Parliaments before being channelled to the appropriate service providers. Research into gambling harm must not be funded by voluntary contributions from the industry that causes the harm.
Finally, many people, including members of the all-party parliamentary group on gambling-related harm, will scrutinise the outcome of the review. May I offer a friendly warning to the Minister? We will not be fobbed off with a partial review, and we will not accept second best.
May I press my hon. Friend on one particular point? He knows about the abuse of VIP schemes and about the behaviour of the gambling companies, which have been appalling in the way they have used people. Is it not now time, instead of looking only at the powers of the Gambling Commission, to get rid of the Gambling Commission altogether and institute a body as powerful as, say, Ofcom or all the other bodies that monitor and regulate these industries? Now is the time to make bold moves, to make sure we get proper control and that the abuses and the addiction end.
I also urge my hon. Friend to reflect on the Public Accounts Committee’s report around an ombudsman service. Some points that we raised were recommendations from the Public Accounts Committee, particularly around redress for people who have suffered real harm, and are really worth noting. I hope he will take note of those considerations.
“do not know what impact they are having on problem gambling, or what measures would demonstrate whether regulation is working”,
will the Minister use the opportunity of the review to assess whether the Gambling Commission itself is fit for purpose, or needs to be replaced by a new body to provide the real leadership needed on the issue of gambling regulation?
One of Maria Fyfe’s enduring legacies is the Community Central Hall on Maryhill Road, which is an incredibly important focal point, providing a wide range of services for local residents. Over the years—many years—it has benefited from lottery funding. What steps will the Minister take to ensure, especially in these difficult times and in the context of the announcement that he has made today, that such organisations are able to continue to get the funding they need, whether through the lottery or perhaps other, more sustainable sources?
In terms of the lottery and the changes we are announcing today, the estimate is that the impact of 16 and 17-year-olds’ not being able to play the lottery will likely be something in the region of a £6 million potential loss to good causes. That is out of a total distribution of around £1.8 billion, so it is a relatively small amount.
I would like to say thank you to all those who have played the lottery and continued to play the lottery this year. Lottery revenue, and therefore distributions to good causes, has stayed up remarkably well, partly because it has been made very clear that much of the money has gone to institutions, bodies and groups in desperate need during coronavirus. I encourage people to continue to play the lottery safely, in the full knowledge that the money is well spent and well targeted.
Virtual participation in proceedings concluded (Order, 4 June).
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