Problem Gambling

Debate between Lord Foster of Bath and Lord Griffiths of Burry Port

Tuesday 2nd July 2019 Lords Chamber

[Lord Griffiths of Burry Port (Lab)]

My Lords, I am delighted to hear the Statement and thank the Minister for repeating it. I and others will welcome those who have made the commitments that were described in this Statement and recognise that it is indeed a step in the right direction.

I am just back from Birmingham, if I may start autobiographically, from the Methodist conference. Some 25 years ago I was the president of that conference, and I was installed in my office in Leeds town hall. It was the year that the National Lottery was launched, and I was launched into putting the Methodist position on the National Lottery almost from the time I left Leeds. I confessed to myself that it was useless to put what some noble Lords would recognise as a traditional Methodist position on gambling: it was here to stay, it was part of our culture, so where was the room for manoeuvre?

I remember going on television with my noble friend Lady Bakewell on a Sunday evening; I limited myself to two points, which I have stuck to ever since. First, the proceeds of the National Lottery should not be used to spend on programmes that were properly the responsibility of government—they would be extra, over and above. Secondly, since there was a proven percentage—I had the facts at my fingertips in those days—of those who gamble becoming problem gamblers, a levy should be imposed on the National Lottery to deal with the problem gamblers that were going to be produced by that industry. This was directed towards the National Lottery at that time, but why not impose it on all lotteries? Those were my two points 25 years ago; they remain my two points now.

The Statement is good, as far it goes, but we have to recognise that this voluntary levy is simply not producing the goods. My O-level maths, which is where I left the subject formally, in the year that King Uzziah died, suggests that the agreed percentage of the turnover of the gambling industry should produce something like £145 million a year. It produces £10 million. The voluntary agreement is not working. The Statement says that we should be prepared to recognise that what has been proposed is for now, but it will take a year to produce the necessary legislation to achieve the mandatory levy. Let us do what has to be done now, and do the legislation a year hence also. We can wait a year, but we cannot wait for things to happen until we come back and say, “Let’s do it”, because then it will be a year after that. It seems necessary for us to move inevitably towards a mandatory levy.

I know that these figures were given in the other place an hour or two ago, but they are worth repeating. SportPesa, which sponsors Everton, and Fun88, which sponsors Newcastle, gave £50 last year. Both are white labels of TGP Europe. Best Bets gave £5: I have just paid more than that for a taxi to get here. GFM Holdings Ltd gave a pound. What on earth would you get for £1 anywhere these days, even on the high street? Pounds shops are giving up on that one.

We have 430,000 gambling addicts, 50,000 of whom are children—it is just not acceptable. The mandatory levy is the step that we have to take, and I urge the Minister not to just echo his master’s voice from another place in suggesting that because it will take another year it is better to settle for what we have. It is necessary to take the first steps towards imposing a levy now, so that the National Health Service, which picks up the cost of dealing with problem gamblers, can perhaps have—even in a hypothecated way—the proceeds of such a mandatory levy to deal with the problem.

I trust that your Lordships will see this point of view, which makes a lucid and obvious case, and that the body language, if not the words, of the Minister shows that he agrees.

[Lord Foster of Bath (LD)]

My Lords, I too thank the Minister for repeating the Statement. I am a member of your Lordships’ Social and Economic Impact of the Gambling Industry Committee.

It is, however, my membership of the All-Party Parliamentary Group for Gambling Related Harm that has led me to meet the parents of a number of children who have committed suicide because of gambling. It has given me the opportunity to meet people with mental health problems who have done everything they can to exclude themselves from gambling websites but are still being bombarded with gambling advertisements and free bet offers. I have also met people who have lost thousands of pounds in a very short time because they have been using multiple credit cards.

For far too long, the gambling industry has failed to take responsibility for the harm that it is causing not only to individuals but families and communities. As the noble Lord, Lord Griffiths, pointed out, far too many of the gambling companies are failing to contribute even the 0.1% of the gross gambling yield to the voluntary levy for research, education and treatment. This Statement is of course welcome. The commitment by the so-called “big five” is welcome and I congratulate all, in all parts of the House and elsewhere, including Ministers, who have managed to shame some—but not all—of the gambling companies into taking this action.

An increase from £10 million to £60 million for research, education and treatment is of course welcome, but we should put it into context. Just some of the £60 million will be used to help the approximately 430,000 people, including children, with gambling problems, when we know that only 2% of them are getting any form of treatment. That £60 million should be compared with the £40 billion annual turnover of the gambling companies, the nearly £1 billion of government cuts to our public health budget and the annual salary of the boss of just one gambling company: today we are welcoming £60 million, while Denise Coates, the head of Bet365, earned £265 million last year.

The £60 million is welcome but, as the Secretary of State admits, there is much more to be done, and we need to ensure that this is not a cynical ploy by the gambling companies to prevent the Government introducing further regulation. The Secretary of State says that he is not yet minded to introduce a compulsory levy. If we do not have one, how will the many companies that are not party to this deal, and which do not make an adequate contribution, do so? Surely the way forward is a compulsory levy.

Further, what more does the Minister believe needs to be done to prevent problem gambling in the first instance? Does he agree, for example, that we need to do more to ensure that individuals can afford to gamble at a particular level, and that we should ban the use of credit cards for gambling? Does he agree that we need a code of practice for advertising? The industry says that it is keen to have one but has so far failed to come up with the goods. What will the Government do to make sure that we have one?

Should we not also have a system of redress for individuals? I am sure the Minister is aware that, if an individual has a problem whereby, for example, they have self-excluded but are still bombarded with advertisements and therefore lose more money because they are tempted, they can go to the Gambling Commission and report it. The commission will take evidence from them and other such individuals—it may take action against the gambling company or even fine it, as has happened in the past—but there is no redress for the individual because the commission does not act as an ombudsman. At present, all someone can do is go to the gambling company and seek redress or take expensive legal action. Does the Minister agree that we need a proper redress scheme? Today’s Statement is a small step, but it is certainly not a giant leap.

Electronic Communications and Wireless Telegraphy (Amendment etc.) (EU Exit) Regulations 2019

Debate between Lord Foster of Bath and Lord Griffiths of Burry Port

Thursday 7th February 2019 Lords Chamber

[Lord Foster of Bath]

I absolutely accept that; my point is that we need to look at the attitude of the Government towards their relationship with bodies such as BEREC. If, even without a no-deal situation—that is, even within the withdrawal agreement, where it is hoped there will be a deal—the Government are supporting a mechanism that they have written themselves, which makes it difficult for Ofcom to be involved in BEREC, then we should have some real concern.

I have drawn attention—I will not repeat the detail in your Lordships’ House now—to how Article 128 makes it difficult for Ofcom to be involved in BEREC. During the debate on the Trade Bill, the Minister concerned gave a very different interpretation of that situation. He made it clear that he thinks it will be perfectly possible for Ofcom to be involved. I challenged that Minister, the noble Lord, Lord Bates, on whether he agreed with my interpretation or with that of his noble friend. I was somewhat surprised by the answer he gave. He said:

“The noble Lord, Lord Foster of Bath, made an interesting point about the reputation of Ofcom, which of course we all recognise as a world-leading authority. He then offered me a pretty difficult choice of choosing between his persuasive speech and the words uttered in Committee by my colleague in government, my noble friend Lord Ashton of Hyde. Given that I speak from the Government Benches, I am afraid that I must side with my noble friend Lord Ashton in this regard”.—[Official Report, 30/1/19; col. 1156.]


So two Ministers now have disagreed with my interpretation of whether we will be able to participate closely with BEREC. I end with a simple question for the Minister today: will he give a clear assurance that, in the event of no deal, it will be the Government’s intention to take all necessary steps to ensure the maximum co-operation between Ofcom and BEREC?

[Lord Griffiths of Burry Port (Lab)]

My Lords, I rise to wish the Minister well. We had a good debate in Grand Committee. We shared very frankly a number of views. There were questions relating to what kind of consultation had taken place; others were raised persistently and clearly by the noble Lord, Lord Foster of Bath, and he has continued to pose them this morning. I was reassured by the letter that we received, which took up and dealt with a number of the questions that we had been struggling with.

Once again, as I said from the Dispatch Box yesterday, I am trying to make a clear distinction between what needs to happen to the statutory instrument laid before us—I am sure the matters arising from it have now been adequately aired—and the questions that will go on worrying us after this instrument has been passed; as we move into the next phase, we will be debating substantive issues that certainly have not been answered in a debate of this kind. For the purpose of dealing with the piece of business directly before us, I am happy to give our accord from these Benches, but not if that should be supposed to cancel, diminish or sideline the issues that have been raised from the other Benches.

Gaming Machines and Social Responsibility

Debate between Lord Foster of Bath and Lord Griffiths of Burry Port

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.