Lotteries Regulation

Lord Addington Excerpts

Tuesday 16th July 2019 Lords Chamber

[Lord Collins of Highbury]

I thank the Minister for repeating the Statement made in the other place. On this side, we welcome the Statement but somewhat regret that the Government have taken seven years to make up their mind about to deal with the society lottery sector. Although society lotteries were in existence at the time that the National Lottery was established, I do not believe anyone expected then that they would continue to thrive without having some effect on the National Lottery.

The Statement makes mention of the extraordinary sums that have been made available to good causes through lotteries—something we should all celebrate. This country embraced both the National Lottery and the society lotteries. It is right that the Government review regulations from time to time to make sure, as the Minister said, that they achieve a balance between enabling the sustainable growth of society lotteries and protecting the unique position of our UK-wide National Lottery.

I have three questions for the Minister. First, the Statement made it clear that there is concern about the proportion of funding going to good causes, the level of executive pay and other transparency issues. It suggested that the Gambling Commission may need to look closely at this, to the point where legislation may be required. Does this mean that the Government are concerned about the efficacy of the present regulations, does it apply to all society lotteries, and can a bit more be said about the timescale for this process? I am concerned that, if something is going wrong, we should act relatively quickly.

Secondly, can the Minister say a bit more about the timescale for the regulations bringing in the new annual sales limits and prize funds? When there was a change to the lottery limits in 2009, the implementation was immediate, but we are hearing that these changes might not happen until 2020. It is not clear what evidence is being sought on the ambition to move to £100 million per annum. Can he say more about that and about what sorts of timescales will be involved?

Thirdly and finally, on the age limit for National Lottery products, is there any need for consultation? Surely we all accept that to gamble you need to be 18; you cannot walk into a casino below that age. I do not think further consultation on this is necessary. There should be one rule: if you want to gamble, you need to be an adult and the minimum age for gambling products should be 18. It is as simple as that.

[Lord Addington (LD)]

My Lords, on these Benches we welcome the Statement and much of the direction of travel on this. It may not be the way that we would do it, but it is certainly not something on which we would want to make a huge stand. What I particularly like about the Statement is that it emphasises again and again the fact that we have a National Lottery that does certain things and has underpinned certain types of activity in our society which simply would not have happened without it.

John Major has said on several occasions how important he thinks it is; he brought it in because the dread hand of the Treasury would not otherwise have allowed us the types of sporting heritage, assistance for the arts, et cetera, that we have had. It was a realpolitik response to what was going on, and it should be preserved. I like the definition that these are two separate things: the National Lottery and the society lotteries.

When it comes to the details of, for instance, the age limitation, I am afraid much of my gut reaction is with the noble Lord, Lord Collins. I cannot see any real argument against raising the limit in relation to the instant scratchcard. There is that instant little buzz—although it is a long time since I have done it—that anyone who has bought one will recognise: “I just missed that; maybe I will have a second go”. That is not something we should be giving to a 16-year-old. If we keep the age limit at 16 for the National Lottery, the wait for a draw is sometimes several hours; by raising the age limit to 18, we would be removing that. I hope the change comes in.

The framework for the society lotteries could probably be described as “steady as they go”. Will the Minister give an assurance that things will be speeded up after the long wait we have had? Will there be greater clarification on when we can expect everything to come again, just to emphasise the development and the structure of what is going to happen in the future? I know he has mentioned it before, but a little more clarification would help. Will he also give a little more reassurance about the fact that we will make sure that the National Lottery and the society lotteries are kept apart, doing different things for different functions?

[Lord Ashton of Hyde]

I thank both noble Lords for their comments. Certainly, I completely agree from this side of the House with the noble Lord’s remarks about the noble Lord, Lord Judd. I hope he is back here soon.

The noble Lord, Lord Collins, asked three questions. As far as transparency is concerned, it is not that there is worry about the regulatory regime at the moment. Society lotteries have been regulated by the Gambling Commission for more than 50 years and we think they have been a success. There are not many larger society lotteries, but we need to keep an eye on them. If we increase their limits, we need to make sure that there is transparency. It is only right that we should review that and look at some of these problems. That does not imply that we are worried that there is a problem at the moment. The Gambling Commission will review the evidence on this.

The noble Lord also asked when these limits will be implemented. The plan is that there will be secondary legislation in the autumn, subject to parliamentary time—I always have to say that. The plan is to have the statutory instrument in the autumn, and then the implementation will take place when the Gambling Commission has to change the licence requirements in April, so we expect this to be in 2020. We want to get on with this, so we aim to do the legislative part when we come back in the autumn.

On the minimum age for the lottery, on the one hand, we are celebrating the fact that for 25 years the National Lottery has been a tremendous success—it has raised £40 billion for good causes; on the other hand, if we want to change it, or prepare for changes in the new licence competition, we need to get evidence on this. That is why we are asking for a consultation to change what has been a successful lottery. We recognise that there are different dangers associated with instant gratification games, such as scratchcards, and the lotto, which is the least harmful form of gambling, according to the evidence. It is reasonable to ask for consultation on that. Both noble Lords mentioned under-16s.

The noble Lord, Lord Addington, was very clear and asked me to emphasise that we will keep the National Lottery and the society lotteries separate. We do not want to do anything to harm the National Lottery. Just over 90% of the money that goes to good causes is from the National Lottery, and just over £300 million, or 9.2%, is from society lotteries, so they are very different beasts. One reason we did not raise the limit to the level that some people wanted was because we wanted to make sure that the National Lottery, which is a monopoly lottery—that is the most efficient method for getting money to good causes—continued to be the mechanism that gives the large, life-changing payouts, and that society lotteries, which most people play to support good causes, continue in that vein.