Gambling Levy Regulations 2025

Debate between Baroness Twycross and Lord Kirkhope of Harrogate

Wednesday 12th February 2025 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

My Lords, I shall speak also to the Gambling Act 2005 (Operating Licence Conditions) (Amendment) Regulations 2024. Both sets of regulations were laid before the House in draft on 12 and 10 December 2024 respectively.

Two decades have passed since the Gambling Act 2005 was introduced. Leading gambling firms operating in this country are now some of the world’s most successful companies. With cutting-edge technological capabilities and deep insight into customer behaviour, the gambling industry and gambling behaviours have undergone monumental change, from the smartphone to the huge increase in online gambling. Our manifesto set out a commitment to

“reducing gambling-related harm … strengthening protections”

for those at risk. We know that harmful gambling can have massive financial, emotional and mental health impacts on individuals, families and communities across our country.

The 2023 gambling White Paper laid the foundations for what is before us today as we introduce draft regulations for stake limits on online slots and a statutory gambling levy to fund research, prevention and treatment. The Gambling Act 2005 (Operating Licence Conditions) (Amendment) Regulations 2024 introduce statutory maximum stake limits on online slots games of £5 per game cycle for adults aged 25 and over, and £2 per game cycle for young adults aged 18 to 24.

Online slots are the highest-risk gambling product. They have the highest rate of binge play and the highest average losses of any online product, and are associated with long playing sessions and high levels of use by people experiencing gambling harm. Online slots are also the fastest-growing gambling product. In the past five years, this yield has grown by 61% and growth is not slowing down. However, there are currently no statutory stake limits for online slot games, unlike their land-based counterparts. As the popularity of slots grows, so does the risk for vulnerable people. Now is the time to act and stem the growing tide of unaffordable losses for people most at risk of gambling harm.

We have designed these stake limits to target those most at risk of harm while ensuring that the impact on operators is proportionate. The lower staking limit for younger adults is an important intervention, as our research showed that younger people may be at an elevated risk of gambling harm. The industry’s trade body, the Betting and Gaming Council, welcomed the decision to introduce stake limits. If these regulations are agreed, there will be a transitional period to ensure that gambling operators have sufficient time to implement the changes.

Today, we are also proposing draft regulations for a statutory gambling levy. From April, all licensed operators will be required to pay an annual levy to the Gambling Commission. The rates at which licensed operators pay the levy are set down in the legislation and licensees are at risk of losing their licence if they do not pay. The levy represents a watershed moment: a significant uplift in the investment dedicated to this area; greater government oversight; and a renewed commitment to further understanding, tackling and treating gambling harms.

The significant contributions that the gambling industry has made to support research, prevention and treatment since the introduction of the Gambling Act 2005 have been crucial. This has allowed an expansion of the support and treatment options available for those in need. I am clear that the third sector will continue to play a key role in the future of research, prevention and treatment, but we now need a sustainable and equitable funding system so that all licensed gambling operators are paying their fair share. The levy provides us with an opportunity and the resources to put in place the right projects and services, clear objectives and robust governance.

To create a world-leading funding and commissioning system, we are mobilising existing expertise and infra- structure. Working with UK Research and Innovation, NHS England, appropriate bodies in Scotland and Wales, the Gambling Commission and the third sector, we are transforming the current system to deliver better access, outcomes and services for people across our country. To ensure that there is sufficient trust, expertise and authority in the use of the levy funding for prevention, I confirmed to the House this morning that we will appoint the Office for Health Improvement and Disparities in the Department of Health and Social Care to take on the role as lead commissioning body in this area for England, alongside appropriate bodies in Scotland and Wales.

Prevention remains a crucial part of the government’s efforts to tackle gambling-related harm. An effective prevention plan seeks to identify the right mix of interventions to be applied at both the population and individual level. That is why the Government are increasing dedicated investment, allocating 30% of levy funding to the prevention stream, alongside the significant funding allocated for research and treatment. Ring-fenced investment in this area will help to encourage innovation and support a strengthened, integrated and co-ordinated approach to prevention in Britain. Working closely with appropriate bodies in Scotland and Wales, OHID will develop a comprehensive approach to prevention and early intervention, supporting improvement across the respective nations.

I want to recognise the leading role that GambleAware has played. Its work to raise awareness of gambling harm and provide support for those in need has been invaluable. We want to build on the successes of the current system while improving and expanding the system to better serve those at risk. Until now, financial contributions from operators have been the only source of funding for the sector. This funding has established the National Gambling Support Network, overseen by GambleAware, which has helped people in need across the country. However, the levy will mean that there is sustainable, ring-fenced and trusted funding for the first time. This will be used across Great Britain for vital treatment, better understanding of the causes of harm and early intervention to support greater awareness and reduce stigma.

My decision on prevention is about building the future system on the strongest foundations. Through the levy, we are investing £100 million of public money to tackle gambling harm and it is right that key commissioning decisions on research, prevention and treatment are made by statutory bodies to ensure that funding is spent appropriately. This is why we are appointing OHID alongside UKRI and NHS England.

Robust government oversight will ensure that levy funding is getting to where it is needed most. The Government will set clear objectives for the system to maximise value for money. We will establish a levy board as the mechanism for the Government to closely monitor spending and the overall effectiveness of the levy. We want to be led by the evidence of what works across the system and so, alongside the levy board, we will organise an advisory group.

We are confident that we have designed the levy in an effective and proportionate way. It has been a priority to strike the right balance between managing impacts on licensees and ensuring that operators are paying their fair share. I recognise that some gambling businesses are facing a tough fiscal environment. These regulations reduce levy rates for a number of licensees compared with the rates proposed in the previous Government’s consultation. Both the Tote and on-course bookmakers will also pay the levy at rates much lower than other land-based operators such as casinos and bookmakers. Online operators will be required to pay significantly more.

These regulations represent the beginning of a new phase for gambling harm reduction, one where people in our country are better protected and aware of the risks of harmful gambling. The levy is a crucial first step to delivering this and I look forward to discussing it further in the debate today. I beg to move.

[Lord Kirkhope of Harrogate (Con)]

My Lords, first, I confirm that I have not been promoted and nor am I even a Whip who is able to take over in certain circumstances. I am not sure whether a colleague of mine will be here to answer this debate from the opposition point of view.

I would just like to say a few words because I know others wish to speak who are far more up to date in many ways than I am. I was the Minister in the Home Office responsible for gambling—or controlling gambling, I should say, perhaps—back in the mid-1990s. I welcome in general anything that improves the services available to those who have addiction or who are likely to be vulnerable to gambling, but I always took the view when I was Minister that we could develop these matters in a simple, one-by-one regulation way rather than in a great way. I was therefore very disappointed when the Labour Government came in in 1997 to see that they took a very strong and comprehensive approach towards gambling, which I never thought was appropriate.

I have worried ever since about its effect. I spoke in the House on an Oral Question earlier this week and said how disturbed I was at the level of gambling in front of all of us, particularly young people, today, both in television advertising, which I would not accept was sensible or proper, and, as we all know, in the burgeoning amount of advertising in sport, such as at sports grounds and in sponsorship. There has been a dramatic increase in the amount of gambling in this country, which has been deleterious and unacceptable. Therefore, I welcome anything that is going to help. I want to ask a couple of questions, if I may, on this.

First, the use of the levy—directional and focused—seems to be correct, but we need a little more flesh on the bones regarding the delivery of support. We have talked about organisations. A number of organisations, some known to the Government and some in the charity sector and so on, are there to look after people who have fallen for gambling in the wrong way and are looking after their addictions and so on. Will the dispensation of the money raised on this levy be wide enough and comprehensive enough to cover all the areas in which people are vulnerable and suffering? I am not sure that that is the case, so I hope that the Minister will give us some reassurances. I must say that I am not happy with that element.

Secondly, is the administering of the levy sufficiently watertight, or are there ways in which it can be avoided? The list of specifics where the levy will be applicable is fairly comprehensive, but I still feel that we need to be clear that this is an obligatory levy that cannot be avoided by various means that might be used.

Finally, am I wrong to assume that the Government will not be doing much else about gambling advertising? I would like to know because, as I have pointed out and as other people have raised with me on many occasions, this level of advertising is unacceptable, but we never seem to deal with it—indeed, it burgeons even more.

National Lottery: Contribution to Good Causes

Debate between Baroness Twycross and Lord Kirkhope of Harrogate

Monday 10th February 2025 Lords Chamber

[Baroness Twycross (Lab)]

Allwyn is introducing further measures compared to the previous licence. The noble Lord will be aware that while some players do experience gambling harm, that experienced by National Lottery players is the lowest of all gambling products. Allwyn is also implementing further protections. As was noted, this includes introducing a maximum of 10 scratchcards per transaction, as of last October, and an extensive mystery shopper programme to test retailers’ enforcement of the age-verification measures. We are clear that protecting participants is an overriding statutory duty of the Government and the Gambling Commission. It is embedded within the fourth licence, with a significantly strengthened requirement on the operator to protect people exposed to the National Lottery as well as those directly participating in it, which goes further than under previous licences.

[Lord Kirkhope of Harrogate (Con)]

My Lords, when I was Minister for Gambling in the Conservative Government, we turned our backs very much against the idea of increasing gambling advertising, particularly on television and at sports facilities during games. I put it to the Minister that matters have got completely out of hand, and that there is far too much of this visual advertising of gambling, which is doing much damage to a lot of people, particularly the younger people in our country.

[Baroness Twycross (Lab)]

The noble Lord raises a good point about the need to protect children from gambling advertising. As he will be aware, operators are prohibited from targeting advertising at children. The Advertising Standards Authority strengthened the rules in 2022 to ban content of strong appeal to children from gambling ads. The wider issue of advertising involves the Gambling Commission introducing new requirements for operators to allow customers to have greater control over any direct marketing they receive. I have personally set the industry a clear task to raise standards further in this area.

European Union

Debate between Baroness Twycross and Lord Kirkhope of Harrogate

Monday 7th October 2024 Lords Chamber

[Baroness Twycross (Lab)]

It is important to recognise that the mood music is hugely important and has been very much welcomed by the EU. The meeting that the Prime Minister held will be followed by further summits and meetings. As I am sure the noble Baroness understands, this is a precursor to making sure we get things moving.

[Lord Kirkhope of Harrogate (Con)]

My Lords, the Minister has spoken about the importance of Ministers meeting. The Parliamentary Partnership Assembly did a lot of good work in the previous Parliament to give a relationship between the United Kingdom Parliaments and the European Parliament. Can the Minister confirm that this assembly will be reconstituted in the near future, as it has proved very useful in the past?

[Baroness Twycross (Lab)]

To keep my answer as succinct as my noble friend the Chief Whip suggested: yes.

Ticket Sales: Dynamic Pricing

Debate between Baroness Twycross and Lord Kirkhope of Harrogate

Wednesday 11th September 2024 Lords Chamber

[Baroness Twycross (Lab)]

Dynamic pricing is not illegal. Businesses must follow consumer protection law when they engage with their consumers using dynamic pricing.

[Lord Kirkhope of Harrogate (Con)]

My Lords, a number of us have been very disappointed at being unable to obtain tickets for Oasis concerts, yet we are concerned that a number of members of the Front Bench of the Government elsewhere have appeared on television claiming that they have obtained tickets. Can the Minister kindly confirm that no special provisions were in place to give those people an advantage over mere mortals like ourselves?

[Baroness Twycross (Lab)]

I cannot speak for Front-Benchers to whom I have not spoken, but I know that a number of my noble friends on the Government Benches in this House spent, as I said, a ridiculous amount of time trying to get tickets on the day and failed miserably.

Global IT Outage

Debate between Baroness Twycross and Lord Kirkhope of Harrogate

Thursday 25th July 2024 Lords Chamber

[Baroness Twycross (Lab)]

I will discuss my noble friend’s point with colleagues and will write back to him as soon as possible.

[Lord Kirkhope of Harrogate (Con)]

My Lords, a member of my family returning to the United States in the last few days has been very inconvenienced by what occurred. I ask the Minister to adequately look at the question of redress in any legislation that we now pursue in relation to data protection generally, and to AI for that matter. It is a vital component of the GDPR. I therefore ask her to look carefully at this and make sure that adequate redress is available across all these matters.

[Baroness Twycross (Lab)]

The Government are reviewing what happened and will implement any lessons learned as a matter of urgency. We appreciate the significant inconvenience caused to those affected, but it is a matter for individual operators. The consumer rules cover specific compensation entitlement. From my view, the essential point arising from the issues caused by CrowdStrike is the need to strengthen our resilience, which is what this Government intend to do.