Lotteries Regulation
Debate between Mims Davies and Ronnie Cowan(5 years, 4 months ago)
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Mims Davies
I thank my right hon. Friend for his comments. There has not been compelling evidence that the majority of the sector requires a £1 million prize limit to drive growth, so we have sought today to seek a balance to enable society lotteries to grow, while preserving the distinct space in which the national lottery operates, with the key feature of life-changing prizes. The Gambling Commission will be monitoring the impact of increasing the prize limit to £500,000, so we do not rule out further increases in the future, if we have a clear evidence base on the impact of the current changes.
Ronnie Cowan (Inverclyde) (SNP)
I thank the Minister for advance sight of the statement. I welcome the ongoing improvements in UK gambling legislation, which the Department has been bringing forward, and I appreciate and welcome the consultation to increase the age for playing the national lottery to 18.
I do not think the Government should be differentiating between Lotto and scratchcards—it should be 18 for all. I am concerned that the Government felt the need to put this comment in the statement:
“My initial view, based on the evidence reviewed so far, is that such a split could be the best approach.”
We are approaching a gambling epidemic in the UK, and the grooming of young adults in the gambling arena should be stopped, and stopped now.
The Gambling Commission was mentioned a number of times in the statement. I have concerns that extra administration will consume its budget, which should be tackling gambling-related harm. Last year, the national lottery paid its chief executive officer £100,000 more than it donated to gambling charities, and I take the opportunity to remind the Secretary of State once again that my preferred option is a mandatory levy.
Recent years have seen an increase in Camelot’s profits against a backdrop of a decline in lottery funding for good causes. However that is to be addressed, we should never forget that we are using gambling to raise funds for charities, and that charities exist because the Government have let down particular areas of our society. Many of the charities being supported should be Government-funded in the first place. Will the Government please reconsider their age-limit review, and will they guarantee the percentage of gross profits to be allocated to good causes?
Mims Davies
I thank the hon. Gentleman for his comments and his hard work on protecting the vulnerable when it comes to gambling. I absolutely share the view that we should be protecting everybody from elements of harm. The risk from the national lottery is low. I understand that he feels differently about the levy, but the Department’s responsible approach of working with the industry is bearing fruit, as we have seen with the £100 million announced recently. The consultation on the age limit applies to all national lottery products, and I will welcome his and others’ response.
Oral Answers to Questions
Debate between Mims Davies and Ronnie Cowan(5 years, 6 months ago)
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Ronnie Cowan (Inverclyde) (SNP)
The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Mims Davies)
I am pleased to say that the NHS is expanding specialist support for gambling addiction in its long-term plan. Public Health England is reviewing evidence, and GambleAware will publish a needs analysis this autumn. Building evidence is key to future funding decisions. We want the industry to be responsible in all ways, which includes funding support for people experiencing harm.
Ronnie Cowan
According to the Gambling Commission, the gross gambling yield of Great Britain’s gambling industry is £14.4 billion, yet the amount donated through the levy for gambling-related harm was less than £10 million. A statutory levy of 1% would equate to £140 million. I know that such a levy is being considered, but what alternatives exist to raise a guaranteed amount over a period?
Mims Davies
GambleAware was fully funded last year. As the hon. Gentleman said, it almost reached the £10 million target, and another £7 million was brought in through financial penalties. We expect targets to be increased in the future and welcome commitments by operators to substantially increase the amounts they give. However, as I said at the Gambling Commission strategy launch, if the voluntary system cannot meet current or, more importantly, future needs, we will look at alternatives. Everything is on the table, including a mandatory levy.