Gambling (Licensing and Advertising) Bill
Debate between Baroness Howe of Idlicote and Lord Browne of Belmont
Lord Browne of Belmont (DUP)
My Lords, I have always been very concerned that the Bill seeks to regulate online gambling providers based outside the United Kingdom through advertising. It proposes that providers across the world should be told that if they obtain a UK Gambling Commission licence, they will be able to advertise in the United Kingdom. I have argued that it is better to secure compliance through proper enforcement—the stick of financial transaction-blocking rather than the carrot of the offer of being able to advertise in the United Kingdom.
To date, I have contended for that primarily on the basis that, for reasons that I will not repeat now, the offer of advertising is not a robust enforcement mechanism, rather than on the basis of the impact of this approach on the scale of gambling advertising. My reason has been that I assumed that increased gambling advertising was something to which the coalition Government were deeply committed because of the nature of this Bill.
The Bill radically changes the law regarding advertising. At present, it is legal for providers based only in the European Economic Area and white-listed jurisdictions to advertise in the United Kingdom. The Gambling Bill, however, changes this radically, proposing that any provider based in any jurisdiction in the world should be able to advertise in the United Kingdom so long as they obtain a UK Gambling Commission licence. This means that we will move from a place where providers in just 31 jurisdictions outside the UK can advertise in the UK to a place where providers in any of the 196 or so jurisdictions in the world can advertise if they obtain a Gambling Commission licence. This widens the jurisdictional scope for advertising online gambling in the UK by more than sixfold. That is a radical change, a change which I thought was as a result of the fact that the coalition Government not only want better regulation, in the sense that they want more companies to get Gambling Commission licences, but also want, or at least are relaxed about getting, much more advertising for online gambling. I thought that they could not have allowed such a Bill to go to Parliament if that was not the case.
Imagine my shock when on 2 March 2014, I read in the Sunday Times the Secretary of State for Culture, Media and Sport, state:
“I also think we need to look again at the regulation of gambling advertising across the UK. In particular, I ask myself if the seemingly constant gambling adverts on television are appropriate. Ofcom figures show a 600% increase in television gambling advertising between 2006 and 2012. This concerns me and I think many people feel uneasy about the high levels. For this reason I have asked the Advertising Standards Authority to review the codes for gambling advertising to see whether change is needed. The outcome of the review could see significant changes in the way gambling is advertised in Britain, ensuring children and the vulnerable are better protected”.
While I am pleased and delighted by that statement, I am at a loss to know how the Secretary of State can make this assertion on the one hand, yet on the other be taking through Parliament a Bill that widens the scope for online gambling providers to advertise in the United Kingdom from 31 jurisdictions to providers in every jurisdiction in the world, so long as they obtain a UK Gambling Commission licence. The Secretary of State is rightly concerned about a 600% increase in television gambling advertising between 2006 and 2012 but she should also be very concerned about the 600% increase in jurisdictions hosting online gambling providers that she says should be able to advertise in the UK if they get a Gambling Commission licence.
I know that at this point some may be tempted to say, “Don’t worry, all these providers will only get the opportunity to advertise because they also come under our regulation”. The implication is that regulated advertising is okay. However, the scale of advertising to which the Secretary of State referred, like the 600% increase in television advertising, is legal and regulated but that does not make it unproblematic. Britain’s primary problem is not the scale of illegal, unregulated advertising but rather, as the Secretary of State’s comments make plain, the scale of legal, regulated advertising which this Bill proposes further to increase.
Today, as the Secretary of State rightly pointed out, we have a problem about the scale of gambling advertising following the 2005 Act. Yet the truth is that we are about to sanction the 2014 Act, which will, if you are concerned about the scale of advertising, make matters much worse, dramatically widening the scope for regulated gambling advertising. It seems to me that the only logical response to the concerns expressed by the Secretary of State about the scale of regulated gambling advertising in the United Kingdom is to narrow the scope for such advertising, not dramatically widen it as this Bill does. In that context, rather than sanctioning Clause 2, arguably the more sensible thing to do would be to delete it. I have, however, opted for a much more modest approach of delaying its implementation.
My amendment states that an,
“order under subsection (5) relating to the commencement of section 2 may not be made until the Secretary of State has reported to Parliament on the outcome of any reviews into advertising of gambling in Britain that they have commissioned in the six months before the day on which this Act is passed”.
Given the significant contradiction—a kinder phraseology would be tension—in the Government’s position and the scale of public concern about what they are proposing, the very least that the Government should do is to delay commencing Section 2 until after the Government have reported to Parliament on the four initiatives that the Minister outlined in his response to Amendment 3 tabled by the noble Baroness, Lady Jones, on Report on 4 March.
In that context, I have two questions for the Minister. First, there seems to be some confusion about the timings of the reports to which the Minister and the Secretary of State committed themselves last week. Will the Minister clarify the timetable? I hope that he can tell us that all reports will be made to Parliament within six months. Secondly, and much more importantly, what assurances can he give Parliament about the future of advertising regulations, especially under the Bill? His response to this question is important.
If we are to be generous to the Government, the only way that they can introduce the Bill and for its advertising implications not to contradict the thrust of what the Secretary of State said about the scale of regulated gambling advertising on 2 March—especially the 600% increase in TV advertising—would be to do the following: first, significantly to tighten up regulation of the gambling advertising that is currently permitted before the Bill takes effect, such that the scale of advertising is significantly reduced; and, secondly, for the regulations governing the operators that will, courtesy of the Bill before us today, be allowed to advertise in the United Kingdom from abroad to be applied very tightly from day one.
If the current level of advertising is significantly reduced, there may be space for a small increase in advertising from online providers from abroad without that increasing the scale of gambling advertising. This strategy of significantly tightening current advertising and then allowing new advertising through the Bill only on a limited basis is the only possible way in which the Secretary of State’s expression of concern about the scale of gambling advertising—I note again the 600% increase in TV advertising—can possibly be reconciled with the Bill.
To that end, I very much hope that the Minister will provide the strongest possible assurance that the Government intend to embrace the amendment. In this regard, I note with great concern that Section 328 of the Gambling Act 2005 allows the Secretary of State to make regulations controlling the advertising of gambling, but the Explanatory Notes to the current Bill say that no regulations have been made under Section 328 to regulate advertising. I suggest that that needs to change. What does the Secretary of State intend to do with her order-making powers?
Mindful of the importance of the Secretary of State’s expression of concern about the scale of regulated gambling advertising and the fact that the Bill dramatically widens the scope for such advertising throughout the United Kingdom, it is only proper that the advertising provisions in the Bill do not come into effect until the advertising review process has been completed and the findings presented to Parliament. I beg to move.
Baroness Howe of Idlicote
My Lords, I fully associate myself with the comments made by the noble Lord, Lord Browne of Belmont. I shall not repeat what he said, but merely underline that he is absolutely right to highlight the contradiction between the impact of the Bill on advertising and the statement of the Secretary of State expressing concerns about the current level of advertising, even before this law has taken effect. It is vital that we insist that Parliament should be given time to respond to the gambling advertising review promised on Report—it is, I would stress, a response to the Secretary of State’s concern about the current scope for gambling advertising which this Bill will dramatically widen—before Clause 2 of this Bill is commenced.
The truth is that because of this Bill the Government hope that we will sanction online gambling providers right across the world, including countries such as China, Korea, Brazil and Argentina, which for the first time will be able to advertise in the UK if they get a Gambling Commission licence. This seems, as the noble Lord, Lord Browne, has said, a strange way of responding to the significant and legitimate concerns expressed by the Secretary of State on 2 March. There are other ways of regulating that do not mean that any increase in regulation must result in an increase in advertising, as financial transaction blocking demonstrates so very plainly.
I look forward to what the Minister has to say because, as I failed to point out when I spoke earlier, he has definitely been a listening Minister and has tried his best to meet our concerns. However, I am sad to say it does not look as if this issue has been met.