Gambling Industry

Lord Foster of Bath Excerpts

Tuesday 27th November 2018 Lords Chamber

[Lord Ashton of Hyde]

The question is why you would want to introduce a mandatory levy. At the moment, GambleAware gets more than the money it asks for. It says it needs £10 million a year, and it is getting an extra £5 million from penalty payments, so it is getting more than it asks for. As I said, if we find that there is a need for more money and the voluntary system is not producing it, we will consider other options.

[Lord Foster of Bath (LD)]

My Lords, I think the House will be somewhat surprised that the noble Lord is suggesting that more money is not needed. There are 430,000 problem gamblers in this country, and currently only 2% of them are getting help. Does the Minister not find it odd that we have a compulsory horse-based levy that brings in £70 million to help horses, and we have a voluntary levy that brings in £10 million to help people?

[Lord Ashton of Hyde]

It is a mistake to say that the racing levy is there to help horses, although a small proportion of it is for veterinary reasons. It is there to help the racing industry and the people who work in it. By the way, a lot of people complain about that levy too. We have asked the industry to contribute, voluntarily, to research, education and treatment. We have said that if it does not produce enough, we will look at other options. Just because the industry has a large gross gambling yield—not profit but yield, which is different and before payment of expenses—that does not mean that we should, for the sake of it, increase the levy and have a compulsory one.

Gambling: Fixed-odds Betting Terminals

Lord Foster of Bath Excerpts

Tuesday 10th July 2018 Lords Chamber

[Lord Ashton of Hyde]

My Lords, I am not clear to what decision the noble Lord refers. When we made the announcement that the revenue forgone from FOBTs would be made up by remote gaining duty, we said that the Chancellor would introduce that at the relevant Budget. We want it to be revenue neutral and so the remote gaming duty has to be in place to make up for the forgone revenues. We said that at the time. We are implementing this as quickly as we can. A process has to be gone through and we are keen to get on with it.

[Lord Foster of Bath (LD)]

There is wide-scale support in your Lordships’ House for the view that, in order to minimise the misery and disruption caused to individuals, families and communities by the £100 stake, it should be reduced to £2 as quickly as possible. What estimate has the Minister’s department made of the speed with which that could, with good will, be introduced? Can he explain why it is not being introduced so quickly? More importantly, who do we hold to account for the further misery that will be caused by the delay?

[Lord Ashton of Hyde]

Perhaps I should explain the process that has to be gone through, some of which is not in the hands of DCMS. As I said, the remote gaming duty increases have to be passed and come into effect; the SI has to be laid, which will be done in the autumn; and the SI debate, in which this House will rightly be involved because it is an affirmative procedure, will have to take place. That is not in the hands of DCMS but of the business managers, and there are severe pressures on SI business because of Brexit. When we have done that, there will be engagement with stakeholders and mitigation plans in relation to the employment that will be lost. Some of that is concurrent and some of it is consecutive—but we have made the decision and we are very keen to get on with it.

Electronic Communications (Universal Service) (Broadband) Order 2018

Lord Foster of Bath Excerpts

Tuesday 5th June 2018 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I shall start with a brief quote from the Guardian in August 2017:

“Britain is a broadband laggard with an average speed ranking it 31st in the world trailing most of Europe, Thailand and New Zealand. A new report has found that across the UK … it takes about an hour to download a … Hollywood film … The average speed in the UK is less than a third that of Singapore, which tops the global league table measuring broadband in 189 countries, where it takes an average of 18 minutes to download a [similar] film … The UK falls well short of the average speeds enjoyed by European countries … The report found that overall the UK lags behind 19 European countries, 17 of them in the European Union”.


Our conversations in this House about broadband usually take the form of a question or short debate on why reception and coverage received by individual Members of your Lordship’s House in such and such a place are so bad; others join in. Notspots are mentioned. Rural areas where 3G and 4G mobile coverage are to be found get discussed in little groups gathering around this Chamber as if they were places with Michelin-starred restaurants and secrets to be shared only discreetly and with close friends. Occasionally we might hear people drop in scary words like “latency” and “contention ratios”. This is followed by a reassuring statement from the Minister that things are going well, investment is pouring in, and that coverage is in excess of the target and is fast approaching 100%. However, if one listens carefully, the Minister never explains 100% of what, and that is a question I want to come back to. I confidently expect that this debate will be no different.

I have no substantive issues to raise on the order before us, and indeed I want to compliment the team at DCMS for the high quality of the paperwork that has been provided, in particular the Explanatory Memorandum. What I want to do is try to set out why the government approach to this issue was wrong in the Digital Economy Act 2017 and is wrong now, and to beg them to use the powers they have in that Act to try to push forward urgently towards what we have referred to in earlier debates as the “two-gig economy”.

Therefore, my starting point is an amendment to the Digital Economy Bill that we won on Report in February 2017. The early election that year meant that we did not get to ping-pong on the Bill and the amendment fell in the Commons. I like to think that our substantial win in the Division Lobby would have got us further down this track, had it been a normal year. As my noble friend Lord Mendelsohn, who moved the amendment, pointed out at the time, our amendments were about making sure that the universal service obligation being introduced met the Government’s published objectives, as set out strongly in the Ofcom technical advice to the Government at the time. It still seems incredible that the Government have come forward with the slowest of the available options. The only option that meets all the requirements was Ofcom’s scenario 3, with download speeds of 30 Mbps and upload speeds of 6 Mbps, compared to what is being proposed in the USO: 10 Mbps download speeds and 1 Mbps upload speeds, which is what we proposed.

At this stage, it is worth commenting that, in my view, responses to the government consultation showed support for higher speeds than what made it into the USO. Possibly reflecting that, I think it fair to point out that the Minister’s introduction to the report on the consultation said:

“I want to be clear that setting the minimum speed at at least 10 mbps is not the limit of our ambition. To support our vision of full fibre connectivity, in the 2016 Autumn Statement, the Government announced a £1.1bn package of measures to support investment in digital infrastructure, aimed at ensuring the UK has the digital connectivity it needs for the future, including full fibre networks and 5G”.


That is pretty good. I think we can all go along with that. Of course, it fits very nicely with the thrust of our amendment, which was to set a very high aspirational target for the USO— but a tough, unachievable floor for the ordinary day-to-day work—require the rollout of the USO to start in rural areas and prioritise small and medium-sized enterprises. We found all those ideas in Germany, whose Government had recently legislated successfully for precisely that approach.

In framing our amendment, we asked ourselves who could possibly argue against setting an aspirational target for broadband connection speeds of 2 Gbps or more, or object to the cost-effective minimum standard of 30 Mbps download speeds. We thought that the Government would welcome us specifying that rollout must be rural and SME-focused. Indeed, we spiced up the amendment even further by adding a requirement on the Secretary of State to ensure fair competition—“This is the Labour Party talking. We want fair competition and we want it now”—and calling for universal service obligations for mobile coverage. We thought that we were playing bingo and had won the full house, but we were wrong.

Looking back at the debate on the amendment, the key points that come out are as follows. The Ofcom report to which I referred is clear that the Government’s preferred USO speed of 10 Mbps will not be sufficient. It argues that even if it is possible and data usage might not require any more—a point that it says is unlikely, even when the technology gains in compression and transmission techniques are taken into account—other issues such as contention rates and latency would render 10 Mbps unfit for usage in a very short time. The best that the Ofcom report can muster in defence of a 10 Mbps download speed is that if it were adopted, it would have to be reviewed almost immediately.

Other countries have shown what happens to innovation and productivity if due care and attention is not placed on the needs of SMEs or on ensuring the widest geographical reach possible. The issue here is linked to the vacuous reliance on coverage in a geographical sense, rather than in terms of the ability of the infrastructure to provide it, now and in the future, if it is to grow and develop. Coverage of 95%—even 98%—may be where we are at geographically or in terms of the number of properties reached, but it does not feel like that to anyone trying to use the internet to start up a business in rural parts of the UK. We need a measure for this in terms of whether one can use one’s equipment wherever they are in the United Kingdom.

Last week, I was climbing in the Scottish Highlands. We could not get coverage in the glens, not unexpectedly, but once I was at the top of Sgurr Fhuaran—I will just mention that it is 1,057 metres high—I found that I was on 4G. I sent messages and photographs. I emailed my friends, as well as the many fans and admirers of my brilliant climbing skills. In fact, I have them here in my pocket if noble Lords wish to see them. It was so good that I could have tweeted about it. But these are activities which I cannot do at my home only 25 miles away from this place. I cannot even have a smart meter, of which I have heard so much, because the connectivity in Little Missenden, where I live, is so bad. Do not get me started on the connectivity in this place.

What on earth is the point of ignoring, in a USO, mobile telephony? The Government wanted to resist that from the start, even though it has been dealt with in a different way. It may be in the various directives, but it makes no sense. That is a point I want to develop.

We are at the cusp of another revolution in technology. If you have lived through and enjoyed 2G, 2.5G, 3G, and even if you are experiencing 4G, you may understand better than I do what is going to happen when we get to 5G. I gather it is not just an upgrade. This is a new, real-time communications technology which will fit seamlessly with wi-fi, providing the infrastructure is upgraded. It is the technology that will make the internet of things viable and allow us to use many other newer technologies not yet thought of. With the capacity and response times achievable with 5G, it can only happen if we install fibre now and that must mean fibre to the premises.

Driving back from Scotland on Saturday, with aching limbs and a slow puncture, I was listening to digital Radio 4. That prompts another thought for the Minister: when are we going to have digital switchover on radio? While I was waiting for my car to be repaired, I had a chance to catch up with a programme called “The Bottom Line” with Evan Davis. He and his guests were discussing what 5G will do to our current use of the internet and, in turn, to our economy. I will not repeat all the points that were made, but it was a very rich and good discussion about what we should be doing to prepare for 5G. It is available on iPlayer and well worth listening to. The point repeated by the panel time and again is that we are well behind the rest of Europe in terms of delivering fibre to the premises. FTTP must be of a new standard, because without that, we will fall even further behind the rest of the world.

FTTP has been recommended by the infrastructure commission to be part of the universal service obligation. Fibre reflects the current and likely future patterns of consumer and citizen behaviour and the increasing use of mobiles as the growing means, particularly in the younger demographics, of accessing all sorts of digital and other services, often in parallel in real time.

My main regret is that we were not successful in getting our amendment to the Digital Economy Bill into the Act. The Act gives the Minister the power to review the USO, so my plea is that he does not regret the situation that we are in and begins to review the USO immediately. Surely the architecture of the USO has to be consistent with the Government’s productivity plan, industrial strategy and the national infrastructure plan. The argument is that without some ambition, the USO itself may become a constraint on all these important challenges.

The Government seem to be caught by the failure of the market structure which they are working with. The USO’s construction has necessarily been shaped with the imperfections of the market structure that has succeeded in getting us on the journey, but is inadequate to address current or future technology. The department needs to use the powers in the Bill to up its game. I beg to move.

[Lord Foster of Bath (LD)]

My Lords, may I begin by congratulating the noble Lord, Lord Stevenson, on securing an opportunity for us to discuss the Government’s universal service obligation proposals? I very much enjoyed his characterisation of the many debates that we have had on this issue and related issues in this House. I suspect that the noble Lord has, as I do, a good idea of what is in the Minister’s folder and what we are likely to hear at the end of this debate.

I certainly agree with the noble Lord that we should be supporting the principle of a broadband universal service obligation, and I agree with him entirely that the USO lacks ambition. Indeed, by the Government’s own admission, the USO is simply a safety net and frankly, not a very good one at that. I have looked at many Ofcom documents and I cannot find a single one in which they express real enthusiasm for a USO of just 10 Mbps. The lack of ambition shown in the USO is common to much of the Government’s whole approach to broadband rollout.

I want to begin by declaring two interests. First, I live in the wilds of rural Suffolk in a home as yet untouched by superfast broadband, and not even by fast broadband. At the weekend, I used the excellent Ofcom app to check my broadband speed and discovered that I have a download speed of just about 3 Mbps and my upload speed is precisely one-third of 1 Mbps. I hope your Lordships will forgive the pun, but I will be champing at the megabit to take advantage of the USO when it comes along.

Gaming Machines and Social Responsibility

Lord Foster of Bath Excerpts

Thursday 17th May 2018 Lords Chamber

[Lord Griffiths of Burry Port (Lab)]

My Lords, it is a great pleasure to be able to begin a response to that Statement, which we thank the Minister for repeating, with a welcome from these Benches. In the Welsh language, we have a little tag, “Chwarae teg”—which means, “Fair play, you have done a good job by there”.

We of course welcome the announcement, which is the culmination of cross-party campaigning. Others were mentioned in the Statement, but we add Carolyn Harris, chair of the cross-party APPG and the Minister, Tracey Crouch, who led the review. They should be commended personally in this way. It is of course a victory for all those people whose lives have been blighted by these toxic machines, and these measures should be enacted as soon as possible. A period of delay for consultation is of course understandable, but we hope that it will not be longer than it needs to be.

Last year, there were more than 230,000 individual sessions in which a user lost more than £1,000. That was referred to in the Statement. These machines have increased the risk of problem gambling. It was referred to in one interview on the radio as the “crack cocaine” or “category A” of addictive gambling activity. It is indeed very addictive and very damaging. The evidence shows that this measure will reduce harm for those experiencing it and eliminate the most addictive roulette content, which will significantly reduce the problem gambling associated with these machines.

Having said that by way of commendation, we have of course to mention our caveats and express our aspirations for ongoing work in this area. We are disappointed, for example, that the Government have not yet introduced a mandatory research and treatment levy. Currently, gambling companies make voluntary contributions to the charity GambleAware to help pay for education, research and treatment of gambling addiction, but we would consider replacing this with a compulsory system. The Statement mentions the continuing education, research and treatment that the Government intend to activate, and the levy would help to pay for all that.

The Government need to set a few challenges for the industry, too: we should not encourage complacency. I ask the Minister to reassure us, for example, that the use of contactless cards to admit people to certain gambling games will be looked at with a critical eye. Mention was made in the Statement of online gambling. We continue to be very worried about its effect on those who use it. It has increased at an exponential pace, and we hope that that, too, will be looked at critically.

Then there is the question of children gambling. A large number have shown themselves to be open to using outlets for gambling, and 57,000 children turn out to be problem gamblers: 57,000 children categorised in that way is surely cause for concern.

On the business news yesterday, I heard that the decision of the Supreme Court in the United States of America to deregulate gambling in the area of sport has brought a spark to the eye of our gambling companies, which now see opportunities to expand their business in those directions. So, while losing a bit of money here, they will not be without innovative possibilities to increase their income elsewhere.

We congratulate the Government once again but look forward to hearing satisfying responses to our continuing concerns about this activity.

[Lord Foster of Bath (LD)]

My Lords, in the other place in 2010 I proposed that the stake for a fixed-odds betting terminal be reduced to £2, and in 2015 my noble friend Lord Clement-Jones introduced a Private Member’s Bill in your Lordships’ House proposing the same. We knew then that FOBTs were blighting the lives of thousands of gamblers and their families, and that the betting shops blighting our high streets were getting something like 70% of their profits from these terminals, which were a catalyst for anti-social behaviour and serious crime. So we on these Benches very much welcome the Statement that has been made today.

However, as the Minister acknowledged in the Statement, this has been a cross-party campaign to get changes, and I, too, pay tribute to Carolyn Harris and all members of the All-Party Parliamentary Group on Fixed Odds Betting Terminals. Outwith politics, there have been many, including the churches—and I pay a particular tribute to the right reverend Prelate the Bishop of St Albans for the work that he has done —and many within the gambling industry itself who have also been campaigning for this change to take place. Many tributes have been paid to the late Baroness Tessa Jowell, and I support all them all. I will make one further one, because it was the noble Baroness who, as Secretary of State in 2005, introduced the legislation that allowed the establishment of fixed-odds betting terminals. It is to her enormous credit that she showed bravery and courage when, two years ago, she publicly acknowledged that she and her Government at the time had got it wrong. She would be the first to say that the decision today is the right decision for the families and individuals who have been affected, and for society—but I am sure that she would have gone further and said that there is still more to be done in relation to online gambling and the advertising of gambling.

I have three quick questions to the Minister. The first is that the Statement makes it clear that this move will need parliamentary approval and that there is still to be further consultation with the gambling industry to ensure that it is given “sufficient time for implementation”. I think that all of us are anxious for this change to take place as rapidly as possible. Can the Minister give us an indication of the timeframe that he envisages before we see a £2 maximum limit?

Many concerns have been expressed about the number of betting shops on our high streets. Although changes were made in 2015, will the Minister acknowledge that the planned changes to the National Planning Policy Framework would give an opportunity to enhance the powers that local authorities have to be able to take action if problems emerge in future following this change?

Finally, I welcome very much that Public Health England is to conduct an evidence review into the health aspects of gambling-related harm. We are all keen to ensure that enough money is made available by the industry to pay for research into, education around and treatment of gambling problems. Will the Minister tell your Lordships’ House whether the time has not come to change the current voluntary levy to a compulsory one? As I have said in your Lordships’ House before, it is very strange that the compulsory levy for horseracing raises 10 times more to support horses than the voluntary levy currently raises to support people. The time has come to change that.

[Lord Ashton of Hyde]

My Lords, I am very grateful to the two Front Benches for their comments. They are welcome to this announcement. It is a great pleasure to be congratulated for a change, and I genuinely am very grateful for that. I absolutely take noble Lords’ point that it was a cross-party effort to change this. As the noble Lord, Lord Foster, said, he has been around a long time and he has been at this particular subject for some time—I am glad that he is glad that what he wanted has finally come to pass. I, too, pay tribute to Carolyn Harris and the work of the cross-party APPG, and I am sure I shall have a chance to acknowledge other contributions later. I will also pass on the noble Lord’s mention of Tracey Crouch. She has taken this on as a personal crusade in many ways, so I will pass on those views.

As is only to be expected, a number of other points were raised, some possibly with disappointment, as were some questions. Both noble Lords mentioned the levy. This has been an ongoing discussion point. The reason we have not introduced a compulsory statutory levy at the moment is that we want the industry, Gamble Aware and the commission to build and improve on the voluntary system. We want them to do this voluntarily and with enthusiasm; we want them to be socially responsible and we expect them to make a lot of progress on this. This announcement today shows that if they do not, and if they are not socially responsible, we will be prepared to legislate. I am absolutely clear, as the Secretary of State has been, that if we do not get the right level of contribution and enthusiasm from the industry, we will consider legislation.

The noble Lord, Lord Griffiths, talked about children gambling and we absolutely understand the issues about children, the possible effect of online gambling on them and the normalisation of gambling, which is an issue to be aware of. Strict controls are, of course, already in place to prevent children gambling online or in individual premises. These are enforced by the Gambling Commission, which is actively looking at increasing the protections online. We have outlined in the response today some of the extra things that we are doing to protect children. The fact is that most gambling by children at the moment is legal—such as betting in playgrounds and so on. We are absolutely aware of the problems, and I can assure noble Lords that we will monitor this. The additional features that we have announced today will help, but this is not the end of the story; we will continue to monitor these things.

The noble Lord, Lord Foster, talked about implementation. We want to get on with this. We have waited long enough and we have sat and listened to a lot of representations from a lot of people. We have made this decision and we want to get on with it. However, this has to go through Parliament, and I hope noble Lords will give it their support when it arrives here. We want, equally, to engage with the gambling industry, because—quite possibly this is the only bad thing about today—there will be some job losses. There are mitigating factors in this: we have a very full employment situation, the possible job losses are spread around the country and there are measures to help, but there will be some involuntary redundancies as a result of this. Interestingly, however, the gambling operators’ own figures showed that there would be about 3,200 job losses by 2020, even if we had not changed the stake at all, because the mood of the public is changing on this. I cannot set out an exact timetable today, but obviously we want to carry on with implementation and do it as quickly as we can.

The noble Lord, Lord Griffiths, asked about contactless cards. We made clear at the consultation stage that we had concerns about the introduction of contactless payment on gaming machines, but there appears to be continued industry-wide support for the introduction of contactless payments. This gives the potential for corresponding player protection measures that could be introduced alongside this form of payment, because of the data that can be received from them.

The noble Lord, Lord Foster, asked about the powers of local authorities. Of course we understand the concerns about the number of betting shops on the high street. Although the numbers have been stable over the past year, they are actually in decline, and I think the effect of what we have announced today will mean that there will be less to be concerned about. We will have to see what the impact is and whether it is quite as bad as the industry says—we will have to see, as the figures are not absolutely clear. We will have to monitor that, and I can assure the noble Lord that we will do so.

I say again that I am very grateful for the welcome that noble Lords have given. Lastly, I agree entirely with the noble Lord, Lord Foster, about the bravery of Baroness Jowell, not only in facing her death but in being able to say that they had got it wrong. To his credit, Tom Watson for the Labour Party said the same this morning.

Gambling Advertising

Lord Foster of Bath Excerpts

Thursday 3rd May 2018 Lords Chamber

[Lord Ashton of Hyde]

It is interesting that my noble friend says that there has been a huge increase. In fact, problem gambling has remained stable over time. We have limited the amount that can be put in advertising. We had a review in 2014 and protections were strengthened. We consulted on extra measures in our gambling review, the results of which will be published shortly. We understand the issues. We want to have gambling effectively regulated on a voluntary basis—which, incidentally, is much more flexible to deal with changes such as online gambling than a statutory basis.

[Lord Foster of Bath (LD)]

My Lords, notwithstanding the limited evidence, does not common sense tell us that increased gambling advertising is intended to increase the number of people gambling and therefore the likelihood of more people having gambling problems? Does the Minister accept that the time has now come for a compulsory levy to support research, education and treatment in relation to gambling problems rather than the current voluntary levy? Does he not find it odd that nearly 10 times more money is raised to support racehorses through the compulsory betting levy than is raised to support people through the voluntary levy?

[Lord Ashton of Hyde]

The important thing is what is effective. I know that many people have strong opinions on gambling, as they do on smoking and alcohol. The fact is that the evidence does not support some of the claims made. The Binde report said that the impact of advertising on problem gambling rates is likely to be,

“neither negligible nor considerable, but rather relatively small”.

On the noble Lord’s point regarding a compulsory levy, we have said many times that if the gambling industry does not provide the requisite amount to support measures to deal with problem gambling, we will consider a mandatory levy.

Creative Industries: Skills Shortage

Lord Foster of Bath Excerpts

Wednesday 2nd May 2018 Lords Chamber

[Lord Ashton of Hyde]

We are only too well aware of the importance of foreign talent, who sometimes come to this country for relatively limited periods of time to work in the creative industries. The noble Viscount is absolutely right that a lot of the jobs in the creative industries are for a limited period. We are working with the Migration Advisory Committee to look at issues surrounding immigration. Again, as part of the joined-up government we referred to, we are talking to the Home Office to make sure the sector’s requirements are known.

[Lord Foster of Bath (LD)]

My Lords, there is much to welcome in the sector deal, but meeting the training skills for the anticipated 600,000 extra jobs means that the apprenticeship levy scheme must be fit for purpose for the creative industries. Is the Minister aware that the Skills Minister has already acknowledged that the scheme is causing particular concerns and problems within the sector, which wants greater flexibility? The sector deal promises simply to monitor the scheme. Your Lordships’ Communications Committee has asked for a comprehensive review. Will the Minister assure your Lordships’ House that we will get that comprehensive review?

[Lord Ashton of Hyde]

I believe that the Department for Education is looking at how the apprenticeship levy is working and bedding down. We understand that there are particular issues for the creative industries. That is why the sector deal includes support to help quickly develop 20 new apprenticeship standards. We will work with the Institute for Apprenticeships to prioritise those standards for the creative industries. I can confirm that, as part of the sector deal, an employer representative from the creative industries will sit on the Department for Education’s apprenticeship stakeholder board. I cannot commit the Department for Education, but it is certainly looking at the particular problems that pertain to the creative industries.

Online Gambling

Lord Foster of Bath Excerpts

Thursday 23rd November 2017 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I congratulate the noble Lord, Lord Browne, on securing this important debate and on the work that he has done in ensuring at least progress towards the establishment of the multi-operator self-exclusion scheme for online gambling.

Listening to the debate, I have been struck by four things. First, I was struck by the call by the noble Lord, Lord Chadlington, for more independent, transparent, quality research on which to base public policy on this issue. Secondly, we have heard far too many horrific examples of the problems caused by problem gambling—from, among others, the noble Lord, Lord Browne, himself, the noble Lord, Lord Morrow, who drew attention to the impact on families, and the noble Lord, Lord Alton, who reminded us, as did the noble Lord, Lord Wigley, of the impact that can be had on entire communities. Of course, we had that very powerful description by the noble Baroness, Lady Richardson, of the circumstances that can lead to such misery. Thirdly, I have been struck by the unanimity in your Lordships’ House on the very many ways forward that have been talked about that could help to improve the situation, from preventing a two-tier MOSES to moving towards a statutory levy. Fourthly, I have been struck by the concern in your Lordships’ House about children and young people. The noble Baroness, Lady Masham, gave a description of the young person mesmerised by online gambling, and the noble Lord, Lord Chadlington, talked about the need for protection of children and young people—an issue that has been so powerfully raised by my noble friend Lady Benjamin, who pointed out that it is completely unacceptable that online gambling apps are made available to children with pretend currencies. Since the Gambling Commission cannot act because its remit pertains only to gambling that involves real money, I hope that the Minister will see if there are ways in which the Government can take action on this.

I served on the committee in the other place that considered the 2005 gambling legislation. We spent much time on super-casinos, which thankfully never materialised, and on the maximum allowable value of teddy-bear prizes in amusement arcades. We did not spend enough time on online gambling or on category B2 machines—or FOBTs, as they are more commonly known. For many years, I have argued that the maximum stake for FOBTs should be £2. Like the noble Lords, Lord Browne, Lord Morrow and Lord Alton, the noble Baroness, Lady Richardson, and others, I hope that a £2 maximum stake will be the outcome of the current review. The stories of the misery caused by FOBTs are numerous and so I hope that we will also be able to reduce the spin rates, so that fewer games can be played per hour, reduce the number of machines in each betting shop, require increased staffing levels, and strengthen local council powers to tackle the blight of clusters of betting shops on our high streets. I hope that the Minister will be able to tell us that such measures are being seriously considered.

If FOBTs are the crack cocaine of gambling, it is online where we see the wild west of gambling. Online, there are no limits, no time when sites are closed, no supervision, easy access and constant availability. It is no wonder that the highest prevalence of gambling problems comes from the online sector, with its 44% share of the gambling market, 21 million active accounts and huge growth in associated advertising and marketing strategies, such as the so-called “free bets”. I hope that the Minister will take note and consider acting on the concerns of the noble Lord, Lord Wigley, about gambling advertising, not least that linked to sport.

The 2005 gambling regulations are, frankly, wholly inadequate to deal with the current situation caused by the technological explosion since then. I acknowledge that some improvements have been made in respect of advertising and the regulation of offshore gambling sites, but more certainly needs to be done by policymakers and, as the chairman of the Gambling Commission said on Tuesday, by the industry itself. There are a number of measures that have been raised in your Lordships’ House that I entirely support: the rapid introduction of the too-long delayed online multi-operator self-exclusion scheme—to be called GAMSTOP and run by the Remote Gambling Association. As many others in your Lordships’ House have said, I hope that the Minister will assure the House that the scheme will be carefully monitored, that there will be a review within three years and that it will be backed by a major ongoing advertising campaign. There would be little point in introducing such a scheme if online gamblers are unaware of its existence.

Crucially, I hope that the Minister can tell us what sanctions will be applied to any licensed operator who does not offer GAMSTOP. Does the Minister also agree with the point made by so many people that, once the online MOSES is in operation, the single-site exclusion schemes that currently exist should all be dropped so that we do not have a two-tier system? I also hope that he will agree with the need to work towards a single MOSES scheme that covers all forms of gambling.

I welcome the other measures that have been raised. The noble Baroness, Lady Howe, talked very passionately about the need to have effective monitoring of transaction blocking mechanisms, and she is absolutely right. Others have talked about the importance of behavioural change prompts, loss limits and bank transfer time limits. I know that if my bank manager agreed to loan me money to go gambling, I suspect that it would rightly be frowned upon, so can the Minister explain why we let people generate huge online debts by allowing financial services to lend them money to gamble through credit cards? Will he at least agree to look into this?

Like others, I do not believe that the current level of funding for research, education and treatment to help problem gamblers and to limit problem gambling in the first place is adequate—£8 million is simply not enough. The 2005 Act gave the Secretary of State the power to introduce a statutory levy for such purposes, but effective industry lobbying persuaded the Government to accept a voluntary approach. However, it is simply not delivering anywhere near the level of funding required to meet the demands placed on GambleAware—demands that all the evidence suggests will increase. The industry fell 20% short of the target last year. Seven months into the current financial year, the industry was 60% short. Such were GambleAware’s concerns about cash flow that in August it notified the Gambling Commission that the services it funds were at risk. No wonder the trustees of GambleAware have criticised the industry’s willingness to address the problem. I am pleased that they intend to name and shame those parts of the industry that do not contribute their share, but I am particularly pleased that they are also lobbying for a ring-fenced statutory levy. It is worth noting that the chair of the Gambling Commission believes that a statutory levy would be a fair way to address the weaknesses of the current system.

After all, a statutory levy is not a new concept for the gambling industry. We have had one for horseracing since 1961, and next year it is estimated that it will generate £90 million. This means that the gambling industry will statutorily donate 10 times more to look after horses than it voluntarily gives to look after people. Staggeringly, the voluntary levy for greyhounds raises almost as much—at £7.5 million—as the voluntary levy to support people, so far more is raised for horses and greyhounds than for people. It is tempting to think that the industry believes in the maxim, “four legs good, two legs bad”.

The time has come for us to take decisive action to ensure, as the noble Baroness put it, that the polluter pays equitably and fully for the cost of gambling-related harm by introducing a statutory levy, and at a higher level than the current 0.1% of gross yield. Requiring no primary legislation, it is an easy win for the Government. It should have been included in yesterday’s Budget. Done quickly, it could still be their own early Christmas present but also one for all those afflicted by problem gambling and their families, who may not have much to look forward to this Christmas because the budget for presents is now sitting in the profits of the gambling industry.

This has been a wide-ranging, well-informed and interesting debate, and I look forward to the Minister’s response.