Gambling: Fixed-odds Betting Machines

Debate between Lord Bourne of Aberystwyth and Lord Lipsey

Tuesday 24th February 2015 Lords Chamber

[Lord Bourne of Aberystwyth]

I do not recognise that figure. However, prior to this debate, I read that researchers had said that we should not seek to extrapolate any arguments from the figures that they had looked at as they came from a fairly limited survey. I will look at the research further but I do not recognise the figure the noble Lord has given.

[Lord Lipsey]

Perhaps the Minister will also point out that the survey was carried out among the 10% of users of properties who have loyalty cards. By definition, you are far more likely to have a loyalty card if you are putting a lot of money into a machine than if you are putting in the odd pound or two.

[Lord Bourne of Aberystwyth]

I am very grateful to the noble Lord. It is, indeed, somewhat self-selecting in that sense: that is absolutely clear. However, I should move on within the time allocated to me.

Although local authorities are bound by law to aim to permit gambling in so far as it is reasonably consistent with the licensing objectives of preventing crime and disorder, ensuring that it is fair and open and protecting children and vulnerable people, the licensing process at present gives authorities considerable scope to attach additional conditions to licences. At present, two licences are needed to open a betting shop: an operating licence from the Gambling Commission to show that the person operating the premises is a fit and proper person, and a premises licence from the local authority. Of course the local authority has to marshal the evidence, if it has a particular planning objection, but it can do that within the existing law. I think that Barking and Dagenham, for example, is looking at that process and seeking to use it. I am not sure exactly where it has got to, but I know that that local authority, at least, is looking into it. That is something that I would encourage, because there are existing powers, as well as those that we seek to introduce.

Now I shall return, as I promised I would, to the conditions that we seek to introduce in the code, via the Gambling Commission. As I have said, they will give powers to local communities, by requiring planning applications to be submitted to local authorities for new betting shops. Putting the change-of-use regulations on a different basis will make that a more powerful tool. It will require those accessing stakes over £50 to use account-based play or to load cash over the counter, putting an end to unsupervised high-stakes play, and it will require all players of FOBTs to be presented with the choice to set time and money at the machine itself. These measures are on track to start in April, and will, I think, make a real difference. The sensible thing to do now is to see how they bed in before thinking about further action. That is a fair and reasonable approach.

I shall now seek to answer some of the specific points raised in the debate. In case I miss any, I undertake that we will look at Hansard and write to all noble Lords who have participated in the debate. First, the noble Lord, Lord Clement-Jones, suggested that planning was not the answer. It is not the whole answer—I accept that—but it is part of the answer. Intervention is also important, and that is a key part of the code.

In response to the useful and valid points made by the noble Lord, Lord Lipsey, I say that the point is to achieve a balance. We need to protect the vulnerable—that is absolutely right—but we should not seek to stop people gambling. Like some other noble Lords, I have a very rare flutter: I went to Las Vegas and never placed a bet, so I imagine I am a bookmaker’s nightmare. I can see that the noble Lord, Lord Lipsey, shares that position, so we have that in common—although his contribution seemed to turn into “Fifty Shades of Betting Shops”, and some of the time I was not quite sure where we were going. I am all in favour of permissive elements, but there are limits. I shall be coming to the noble Lord, Lord Dubs, for tips for the Grand National when we reach that part of the year, which is very close now.

Several noble Lords, including the noble Lord, Lord Strasburger, rightly raised the issue of problem gamblers. To try to put this in context, FOBTs are in decline overall, according to our most recent figures: 4% of adults played them in 2010, and that dropped to 3.4% in 2011-12. Average stake size on a FOBT machine in a bookmaker’s was £5.13; on a B2 it was £14.08. That does not mean that this is not a serious problem, or potential problem, but we need to get it into context. Most people who use these machines do not have gambling problems. The idea that they do is not borne out by the research.

This has been a useful debate, and obviously the department will study it. In case I have not made this absolutely clear, I want to nail again the point that the Government remain very vigilant on this matter, and in reviewing evidence on the effects of fixed-odds betting terminals. We want to make sure that the betting industry is well aware of that. The Rubicon has not been crossed, nor will it ever be. Nothing is final, except that the Government will work in partnership with the Gambling Commission, which is neutral. In answer to the point made by the noble Lord, Lord Strasburger, about the questionable nature of the Responsible Gambling Trust’s independence, I should explain that it is the Gambling Commission that reviews the research. I know it has an industry element to it, but its research is reviewed by the Gambling Commission, which is a statutory body. We shall study this useful debate, and during 2016 we will also study closely the evidence and the research, to see how effective the reforms being introduced this spring have been.