My Lords, the promotion and upholding of integrity is one of the key functions of all sports governing bodies and event organisers. The whole concept of sport is based on what is described as fair competition between participants under agreed rules. A vital principle for any sport is that all its participants are competing to win and that its officials are honest, and are seen to be so.
This amendment deals with a situation which could not have been forecast when the Gambling Act 2005 passed through this House and into law. At that time, the idea that people would somehow be able to vote without ever being close to or involved in a game was not thought of as likely to happen, and we certainly did not see, or have evidence to suggest that we had seen, any ideas that people involved in the betting industry—not the industry as a whole—might seek to use means to try to fix matches. The situation that emerged out of the 2005 Act is not one that we could have predicted; times have moved on. Therefore, we need to think hard about how to protect sports integrity as we move forward. Those who seek to influence the outcome or progress of sports events to secure rewards through betting undermine the very principles that I have been talking about. Worse than that, any suspicion that that is happening is almost as bad as the event itself happening. So some action needs to be taken.
The Government have been working with the Gambling Commission—and I give them credit for this—on how best to ensure that information flow is made available to those with responsibilities in this area. As a result, there is a series of regulations that operate, particularly licence condition 15.1, which ensures that information about practices that might be redolent of an event that has been fixed are brought quickly to the attention of the sports governing bodies and authorities so that action, if necessary, can be taken.
During the passage of the Bill in another place, my colleague in the Commons, Mr Clive Efford, spotted a gap in the overall approach being taken here, which is that the responsibility for spread betting is and continues to be with the FCA, which does not have the licence conditions—including licence condition 15.1—that apply to those organisations registered through the Gambling Commission itself. However, in the period since then there have been meetings and discussions, and I am very pleased that we have now got to a situation where, in respect of those bodies that are involved in regulating sports events, which include spread betting operated under the auspices of the FCA, the effect will be that licence condition 15.1 will apply, so that all information can be channelled to those who require it in a way that will allow them quickly to take action if required. This is terrific—and, if I am going to hear that from the other side, we will welcome it. It may influence how we take forward this amendment.
However, in closing I make one point. The situation that we will find ourselves in if what I hope is the case comes through is that those in scope to the Gambling Commission will have the effect of licence condition 15.1 applied to them. But if there were a situation in which a spread betting organisation were to start taking bets on gambling activity but was not in scope to the Gambling Commission, the information flows would be interrupted. Can the Minister reflect on that point and give us some information, if he has it, on that issue? Subject to hearing more about that, I am very happy to move this amendment and look forward to hearing what the Minister has to say in response.
My Lords, this amendment returns us to an issue that has already received considerable scrutiny. As we have heard, it is vital that national sports governing bodies receive information and intelligence about any untoward betting patterns as a matter of urgency so that they have the greatest opportunity to prevent corrupt activities and behaviour. Spread betting needs to be regulated just as effectively as fixed odds betting. Yesterday, the Minister informed noble Lords that the Gambling Commission is to extend the remit of its licensing code 15.1 to include spread betting in its information reporting requirements, as is placed on those who have a fixed odds betting licence. I commend this remit, because it will address most of the issues that sports bodies have raised. Presently, the two companies that offer spread betting also offer fixed betting and thus have Gambling Commission licences. Could my noble friend tell me when the Gambling Commission will introduce this new licensing code?
I am also pleased that in recent weeks the FCA has finally agreed to take responsibility on this issue, no doubt following pressure generated by noble Lords— I say, immodestly. It has come forward with proposals for its own industry guidance for spread betting companies that take bets on sport. This guidance will be broadly similar to that issued by the Gambling Commission, but there are two main areas where it will be deficient in comparison and concerns remain.
The first is that the guidance will not be made public. I find that somewhat curious. Surely, regulatory requirements set by public bodies should be open, transparent and accountable. How is the sports sector to have confidence in a regulation if it does not know what it says? How can it be used as educational material or act as a deterrent in the sporting world if we cannot show people the actual guidance? Can the Minister give an assurance that a way will be found to make sure that this guidance is made publicly available to those in the sports sector?
Secondly, the industry guidance issued by the FCA will not require as a statutory requirement that the spread betting company must share any information that it has, not just with the FCA but, most importantly, with sports governing bodies. Sports bodies understandably have ongoing concerns about the quality of information that they might eventually receive and the speed at which it will be made available. I gather that the reason for this is that the FCA says that its own statutes do not allow it to instruct spread betting companies to share information directly with sports governing bodies. That would be a major anomaly and a threat to sports integrity, should a spread betting firm operate without having a fixed betting arm. That means that it would not fall under the regime being proposed by the Gambling Commission. Can the Minister tell me what action the Government are taking to ensure that any future spread betting company that is established and does not have a fixed betting operator licence will still be subject to the same requirements that the Gambling Commission is introducing?
The easiest way in which to guarantee a level regulatory playing field between traditional and spread betting companies would be to transfer responsibility for sports spread betting from the FCA to the Gambling Commission, as the amendment would seek to do. I understand that there are powers contained in a Treasury-regulated activities order that would enable the transfer of sports spread betting from the FCA to the Gambling Commission, which may be a more suitable route to address the issue than in this Bill. Could the Minister give a commitment that that option will be further explored as a matter of urgency, and that, should there be any development of standalone spread betting companies setting up, we could expect to see the application of a transfer of sports spread betting from the FCA to the Gambling Commission using that Treasury-regulated activities order? That would ensure that sports integrity continues to be upheld.