Gambling Levy: Online Gambling and Greyhound Racing
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The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Mims Davies)
I congratulate my hon. Friend the Member for Tiverton and Honiton (Neil Parish) on securing this debate and on giving us a chance to speak about the breadth of areas he mentioned. It is absolutely right that we do so, because greyhound racing employs over 7,000 people in the UK, with over 2 million people attending races each year. It contributes an estimated £55 million to the Exchequer.
I welcome the opportunity to discuss the Department’s positive work, including by my predecessor and my officials, to ensure that we have supported greyhound racing, that we increase bookmaker contributions and, vitally, that the welfare of our greyhounds is protected and indeed improved. We recognise the challenges that the sport has faced over the past few years. There has been a decline in racecourse attendance, and betting has progressively moved online, resulting in a drop in contributions from gambling operators to the British Greyhound Racing Fund.
The hon. Gentleman’s words are gratefully received, and in January we announced progress on additional voluntary funding—a commitment to the welfare of greyhounds. It is worth an estimated additional £3 million this year, increasing the expected income to around £10 million annually. This commitment will significantly improve the welfare of thousands of greyhounds, both on and off the track, and it will further support retired or injured greyhounds, ensuring they can enjoy a full and active life—as we heard—both inside the sport and in retirement. Although we recognise that it is a positive step in securing additional contributions from the five largest online betting operators, I am aware—the hon. Gentleman has also made the point—that we want more money for welfare. I therefore urge bookmakers that have not signed up to the agreement to do so to meet their welfare obligations to the sport and the animals.
Neil Parish
The most difficult part is that, to a degree, we can name and shame companies that are not contributing, but those that are offshore and well away from the UK probably do not worry too much about their reputation. How do we get at them to ensure they contribute? More people are moving to offshore online betting.
Mims Davies
On welfare and levies on gambling, my Department has to ensure that bookmakers are at the table. Where profits are in this country, we should seek to ensure that they go back for the good of the sport or to support other areas where there are vulnerabilities. I take his point and will write to him.
The Department has a responsibility to ensure that all bookmakers meet their obligation. I will be meeting the Remote Gambling Association next month, when this will be on our agenda. I also recently met the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Macclesfield (David Rutley), who has responsibility for animal welfare, to discuss our respective Departments’ funding and welfare concerns, and to ensure that it continues to be an important issue across Government. I also met the Greyhound Board of Great Britain, alongside the RSPCA and the Dogs Trust, to discuss everything the industry has to think about on greyhound welfare. I have made it clear that welfare should be at the heart of the sport, as my hon. Friend said, and that standards should be as good as they can be, so that the sport will remain an attractive spectacle and continue to thrive by having people enjoy it. I will continue that work with Department for Environment, Food and Rural Affairs, so that industry representatives and everyone involved ensure that greyhound welfare is absolutely safeguarded. Any greyhound put to sleep due to medical treatment being too expensive or a poor prognosis is one too many, and we must stop it.
The publication of GBGB’s “Greyhound Commitment” is welcome and marks a sea change for the greyhound racing industry. It is driving up welfare commitments and standards, which is what we want, and has led to an increase in voluntary funding. Alongside the publication of the injury and retirement figures in 2018, the “Greyhound Commitment” makes it clear that we are making progress on this journey. It also shows that there is much more to do, and I want to ensure that we continue our commitment to drive these changes.
Over the next three years, GBGB has committed to halving the number of greyhounds that are regrettably put to sleep due to their not having a home or for economic reasons. The ultimate aim is to bring the figure down to zero within five years, which is absolutely right and an expectation that I thoroughly support. Hon. Members all want greyhounds to find new homes and enjoy a healthy retirement when they leave the sport. There are positive signs of the industry stepping up to the challenge that my hon. Friend laid down in the 2016 Environment, Food and Rural Affairs Committee report on greyhound racing, to build capacity and strengthen welfare in the system rather than just waiting for legislation and indeed enforcement.
On the voluntary commitment, bookmakers and the industry can play an important part in ensuring that there is enough funding for the greyhounds and integrity in the sport. Of course, this is only one source of income for the sport. More than half of the industry’s income, totalling around £119 million, comes from existing commercial agreements and racegoers. It is important that the industry looks at ways of increasing commercial income, so that more support can be used to benefit welfare and raise standards. As my hon. Friend said, we cannot do that without greyhounds being at the heart of the matter. Putting the welfare of animals at the heart of the sport, and supporting that with funds from existing commercial income, can only sustain and support the industry further. Greyhound welfare is an objective that we must all share to guarantee the long-term future of the sport.
Online betting on greyhound racing has increased in recent years, and the industry should continue to seek opportunities to generate more commercial revenue through online streaming and media platforms. That is another avenue through which we can support the industry directly.
The Government do not currently plan to introduce a statutory levy. My hon. Friend mentioned that state aid is one reason why a levy is problematic. Things may change post-Brexit, but we expect progress even without introducing a levy.
Neil Parish
I accept what the Minister says, but I am a great believer in needing quite a big stick to bring people into line now and again. I would have thought that the idea of bringing in a levy in future would concentrate minds in the industry. If it delivered the 1% to 1.5%, we would perhaps not need the statutory levy, but sometimes the stick needs to be available.
Mims Davies
My hon. Friend tempts me. I have never said, for any other aspect of gambling, that levies are off the table. At this point, the Government do not currently have plans to introduce a levy but, as I said, that does not stop us from working with all available tools to ensure that the sport has a successful future.
The Department for Digital, Culture, Media and Sport has committed to securing new funding from online operators, which was worth around £3 million to the sport in January of this year. As I said, that raises the total income to around £10 million annually, which ensures that we can work with GBGB on its long-term strategy for welfare, and shows the cross-Government commitment to doing what we can with the tools that are currently on the table to ensure that the industry is up to scratch. I take this opportunity to remind all operators to ensure that they are contributing and that we maximise commercial income from the sport so that we can deliver on our welfare commitments.
I thank my hon. Friend for raising the issue of the welfare of greyhounds. We need to make sure that we have a stronger industry in which the greyhound is at the heart of the sport. As we heard from the hon. Member for Strangford (Jim Shannon), there is a passion for making sure that that is the case. I remain confident about the new funding commitment announced in January. We will help the sport to ensure that welfare standards are met and maintained.
Like my hon. Friend, I urge all non-paying bookmakers to contribute to the fund so that we can sustain the sport’s future. I commit to working with DEFRA and with bookmakers to make welfare the priority, and to keeping everything under review, making clear that bookmakers should continue to meet their obligations to the sport. I have been delighted to speak about the progress that we have made so far this year. We will always keep everything under review.
Question put and agreed to.