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The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stuart Andrew)
It is a pleasure to serve under your chairmanship, Sir Christopher. I thank the hon. Member for Inverclyde (Ronnie Cowan) for securing this important debate. His SNP colleague, the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), complained that his hon. Friend is pinching part of his constituency; as someone whose entire constituency is to be abolished, I certainly have some sympathy.
In all seriousness, it is important that we are having this debate, which raises the issue at a crucial moment in the Government’s commitment to tackling gambling harms. I thank all those who have contributed for their thoughtful comments. It has been valuable for me to hear the range of perspectives. Indeed, in my time as the gambling Minister I have welcomed the constructive engagement we have had, because I am keen to hear from all sides. I recognise that many people gamble safely, but equally I am always mindful of the families—I think we have all met them—who have gone through some of the most unimaginable pain.
The Government recognise the concerns that many have raised about the presence and impact of gambling advertising in general, and particularly in sport. Gambling advertising clearly remains an issue of vibrant debate, and rightly so. Colleagues have raised it with me directly and in the media since I took on the gambling brief just over a year ago. The debate on advertising encapsulates the balance we are aiming to strike on gambling regulation. We are looking at regulating an innovative and responsible gambling industry on the one hand, and at the duty of the Government to protect children and the wider public from gambling-related harm on the other.
As colleagues have mentioned, developments in technology have undoubtedly led to rapid changes in the gambling landscape. The smartphone era comes with risks and opportunities, so we need to strike the balance between freedom and protection. That is why we committed to a root-and-branch review of gambling legislation. We took an exhaustive look at the best available evidence, including on advertising, as part of our Gambling Act review. The White Paper that we published in April last year captures our vision for the sector, with a robust package of reforms aiming to mitigate the risks of gambling-related harm and seize the opportunities to prevent it as early as possible.
It has been said that we sidestepped the issue of advertising. I think that is slightly unfair. The evidence-led action on advertising forms an important part of that vision. The liberalisation of gambling advertising was one of the major changes introduced in the Gambling Act 2005, and we have undoubtedly witnessed the continual growth of gambling marketing since then. However, it is important to note that we have not seen an increase in gambling participation rates or population gambling harm rates over the same timeframe. Those have remained broadly the same. None the less, I recognise that a parallel change has been the increasingly visible integration of gambling advertising with sport. That is especially relevant to me as the Minister responsible for sport, alongside civil society.
In our Gambling Act review, we considered evidence that gambling brands provided 12% of sport sponsorship revenue. Gambling brands are most strongly present in top-tier football, as has been mentioned, where eight out of 20 premier league teams this season have front-of-shirt gambling sponsors. In fact, gambling sponsors contribute around £45 million a year across the English Football League’s three leagues, and a significantly higher proportion of revenue in the Scottish football leagues, as the hon. Member for Inverclyde mentioned. Gambling sponsorship also represents a significant source of income for sports other than football, with around £80 million in sponsorship revenue.
We know that sponsorship by gambling firms can have a level of impact on gambling behaviour. The Gambling Commission’s consumer journey research shows that seeing sponsorship is a “passive influence” on gambling behaviour, although it is far less influential than winning a significant amount of money or hearing about someone else’s big win. The evidence to date therefore shows that while gambling advertising around sport is widely noticed, it has a background effect when it comes to having an impact on gambling behaviour.
Paul Blomfield
I accept that the Minister is making an argument with integrity, but if advertising has such a marginal impact, why does he think the gambling industry spends so much on it?
Stuart Andrew
We have had this discussion before. One of the reasons that our White Paper has landed as well as it could do in a challenging policy area is that it has been developed through use of the very best evidence. I will come on to that point later, because I think there is further work to be done in this field.
The industry’s whistle-to-whistle ban has cut the number of pre-9 pm betting adverts to around a quarter of their previous level, as the hon. Member for Barnsley East (Stephanie Peacock) mentioned, and further cut the average number of sports betting adverts seen by children to just 0.3 per week. None the less, we also know that gambling sponsorship is one of the main ways children are exposed to gambling, and that gambling marketing can have a disproportionate impact on those already experiencing gambling harm. That is why the advertising rules have been strengthened since October 2022. Content that has a strong appeal for children, such as that involving top-flight footballers, and that creates a sense of urgency to gamble is banned from appearing in gambling adverts. This measure further protects children and vulnerable adults.
Following on from the gambling White Paper, we are in the process of implementing a comprehensive suite of protections, ranging from action on advertising, products and the way that gambling is provided to prevent gambling-related harms. In line with existing gambling advertising rules, as has already been mentioned, the Premier League’s decision to ban front-of-shirt sponsorship by gambling firms will commence by the end of the 2025-26 season.
I can also confirm that a cross-sport code of conduct for gambling sponsorship has been agreed by a number of the country’s major sports governing bodies, from the Premier League and the English Football League to the British Horseracing Authority, the England and Wales Cricket Board and others. Indeed, the Rugby Football League sought to build in the code’s provisions as part of its renewed agreement with Betfred. This landmark code fulfils a key commitment from the White Paper ahead of schedule, and will bind all domestic sports governing bodies to four core principles. First, all sports will ensure socially responsible promotion. Education and awareness will form a key part of all sports’ marketing activities, including in stadiums.
Ronnie Cowan
The Minister has just acknowledged the need to build education support. Will he acknowledge the fact of the potential damage that has been done by this product in the first place? The gambling industry cannot have it both ways; these companies are causing the damage and at the same time painting themselves as the good guys because they are helping to support people out of addiction. They cannot own both organisations.
Stuart Andrew
As I said, I will come on to further research that I feel we need to do, but I want also to emphasise that we are trying to do a considerable amount of work here as part of the wider White Paper reforms. In essence, we are trying to deal with 15 years of digital progress, which is quite significant.
At this point, I want to pay tribute to all the team over at the Department for Culture, Media and Sport. They are working extremely hard to meet the commitment we made to get the majority of the code done by the summer of this year, recognising that its implementation will have the greatest impact on tackling gambling harm.
The second core principle is the protection of children and vulnerable people. Sponsorship has to be designed to limit reach to children and those at risk of gambling harm, and this will see adult replica kits, as was mentioned, available without the front-of-shirt gambling logo.
The third principle is one of reinvestment into sport. The commercial income raised from gambling sponsorship will provide grassroots services that genuinely serve fans and communities.
Finally, the code will ensure that gambling sponsorship maintains sport integrity. Sponsorship arrangements will build in appropriate requirements that they do not compromise the integrity of sporting competitions nor harm the welfare of participants. Together, those principles will establish a robust minimum standard for gambling sports sponsorship across all sports.
Of course, commercial arrangements and fan-bases differ across the industry, and that is why individual sports governing bodies will also introduce bespoke arrangements to fulfil these principles in a way that is tailored to maximise their impact. Some sports, including football, intend to have their arrangements in place as early as this year ahead of the next season. Ultimately, this will guarantee that, where gambling sponsorship does appear, it is done in a responsible way and that fans, especially children, are better protected.
There is no single intervention that effectively prevents gambling-related harm, and that is why we have taken an evidence-led approach to implement a package of reforms targeted at different levels, including advertising. We absolutely recognise that advertising can have a disproportionate impact on those experiencing gambling harms. Technological advances and developments and the increasing dominance of online gambling have necessitated a doubling of efforts from us as a Government. We and the Gambling Commission are now taking targeted action to ban harmful practices and to ensure that advertising remains socially responsible wherever it appears.
The commission has recently consulted on strengthened protections to ensure that free bets and bonuses are constructed in a way that does not encourage excessive or harmful gambling, and that is in conjunction with new rules to give consumers more control over the direct gambling marketing they wish to receive. Together, the measures will empower customers and prohibit harmful marketing practices to further prevent the risk of gambling harms. The commission will set out its response to the consultation in due course.
Our holistic approach also includes action on the products themselves. We recently announced the introduction of stake limits in online slot games, as was mentioned, where we have seen evidence of elevated levels of harmful gambling. But we are also pursuing broader protections, such as financial risk checks and further strengthening restrictions on game design. I am clear that effective and innovative collaboration to get the right mix of interventions for the population as a whole and those with specific needs is required to tackle this issue.
Evidence has been a key theme in this debate, and I want to end in recognising that further work is needed in this area. A concerted effort to build the evidence base to ensure policy and regulation are able to deal with the emerging issues is paramount, and the Gambling Commission’s important work on the gambling survey for Great Britain aligns with this priority. The survey will in time provide us with a better picture of gambling behaviour and the nature of gambling-related harm.
However, developing quality evidence is also a key priority for the Government’s statutory levy. Increased and ring-fenced funding will be directed towards high-quality, independent research into gambling and gambling-related harms, including on advertising. As my right hon. Friend the Secretary of State made clear at the launch of the White Paper, if new evidence suggests that we need to go further, we will look at this again.
I again thank the hon. Member for Inverclyde for securing this important debate and all the Members who made valuable contributions. I am committed to tackling gambling-related harms and I am confident that the action we are taking will have a real impact in reducing those harms across the country. The new levy will provide us with even more evidence. As I have already committed, if further action is needed we will look at it again.