(5 years, 4 months ago)
Lords ChamberMy noble friend is right to raise the issue of VIP schemes. Our understanding is that since the commission challenged the industry on this, the number of customers in VIP schemes has fallen by 70%, and the rules governing the schemes formally came into force at the end of October. We will continue to monitor them and, if further action is needed, the Gambling Commission is ready to take it.
My Lords, the Gambling Commission is, as always, playing catch-up. Does the Minister agree that it needs to be proactive? Will the Government introduce legislation under which all gambling products, prior to their launch, would be assessed for their capacity to cause social harm?
The Gambling Commission has been very active, particularly in the last year with the risks around Covid and lockdown. We are currently looking at funding, and there is a consultation out on an uplift to Gambling Commission fees, to make sure that it can keep pace with the industry.
(5 years, 5 months ago)
Lords ChamberOur number one priority in the Gambling Act review, which I appreciate is broader than the noble Viscount’s question, is the protection of children and their access to gambling. The call for evidence on loot boxes closed at the end of November. We received tens of thousands of responses, and we will publish our response to that early this year. I will need to confirm the position on skins and write to the noble Viscount.
My Lords, an effective review of gambling legislation requires consideration of social costs, which are undoubtedly substantial. Does the Minister agree that the review would need to include at least the costs of the effects on immediate family, relationship breakdowns, domestic violence, depression, attempted suicides, crime, cost to the criminal justice system, loss of employment, job searches, health treatment, bankruptcies and productivity?
I absolutely agree that we need to understand the social costs, but the more important issue is that we reduce the scale of problem gambling, because however well we measure the social costs, we will not capture the impact on human beings and their families.
(5 years, 5 months ago)
Lords ChamberThe purpose of the review is to keep the balance. Of course we acknowledge that the vast majority of people who go out and place a bet—whether once a week, twice a year, or however often it might be—may get great fun and pleasure from it, and it can be a form of social contact. However, we also know that there are people who pay a great price and suffer as a result. We are seeking to find a balance, so the evidence in relation to mental health in both directions will be taken seriously.
My Lords, gambling companies such as 888, Bet365, Betfair, Flutter, Ladbrokes, Paddy Power, Sky Bet and William Hill have used complex corporate structures in Guernsey, Alderney, Gibraltar, the Isle of Man, Ireland and Bulgaria to avoid UK corporate taxes. Indeed, in 2018, HMRC finally defeated Ladbrokes on its £71 million tax-avoidance scheme. Does the Minister agree that gambling companies avoiding UK corporate taxes should automatically lose their licence to operate here?
Companies that avoid taxation illegally, whether they are gambling companies or any other companies, should be held to account for that. However, as the noble Lord is aware, gambling companies contribute about £3 billion to the Exchequer through the levy.
(5 years, 6 months ago)
Lords ChamberI reassure the noble Lord that progress is being made on advertising. We are calling for evidence on gambling advertising but obviously, we cannot prejudge the findings. The Advertising Standards Authority’s strict rules on gambling advertising apply across the UK.
My Lords, I welcome the review, but have concerns about the process. The overreliance on written evidence will inevitably favour gambling companies and marginalise their victims. I urge the Government to establish a truth commission or Leveson-type inquiry, so that victims of the industry and their families can speak and corporate executives who have failed to honour their promises can be examined under oath.
The noble Lord raises an important point: that the voices of those who have been harmed by gambling should be heard. My right honourable friend the Secretary of State’s first meeting on this issue was with a group of experts with lived experience of gambling harm. I encourage the noble Lord to submit evidence to this review.