Gambling Industry: Gambling Reforms

Viscount Colville of Culross Excerpts

Tuesday 17th May 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

We called for evidence on advertising as part of our review of the Act. Many people share the noble Lord’s frustrations. Public Health England’s evidence review did not find evidence that exposure to advertising and marketing was a risk factor for harmful gambling, but we are looking at all these issues as part of our review.

[Viscount Colville of Culross (CB)]

My Lords, under UK legislation the definition of gambling is tightly drawn. It excludes increasingly popular mobile phone apps such as social casino apps, which require money to get players started and, once they are hooked, they are given tokens within the game. Does the Minister agree that extending the definition would also lead to an extension of the gambling tax?

[Lord Parkinson of Whitley Bay (Con)]

As the noble Viscount knows, we have looked also at the harms associated with online gambling. Indeed, while awaiting the White Paper and the outcome of our review, we have strengthened the rules on how online operators identify and interact with people at risk of harm. We are not delaying in taking action where that is needed.

Gambling Harm (Social and Economic Impact of the Gambling Industry Committee Report)

Viscount Colville of Culross Excerpts

Wednesday 27th April 2022 Grand Committee

[Viscount Colville of Culross (CB)]

My Lords, I add my praise for the insight and care with which the Select Committee has put together this report. It quotes the Government’s evidence that 0.7% of the adult population of this country are problem gamblers. However, much of this information is self-reported and it is inevitably an underestimation.

I find more convincing a report from HSBC, which investigated the accounts of 1.5 million of its customers to look at their actual gambling spend compared with their disposable income. It concluded that 2% of customers, classed as “Very Concerning”, spend more than 60% of their disposable income on gambling, and 8% spend more than 20% on gambling; these were classed as “Concerning”. These figures not only show the need for the banking industry to become the first responder for these vulnerable customers but emphasise many of the report’s recommendations.

I will focus my speech on the exponential growth in online gambling and the increasing gamblification of online gaming, which is affecting users as young as three. As the noble Lords, Lord Bourne and Lord Kirkham, said, we have seen a huge increase in online gambling, available 24/7 on all sorts of devices, including mobile phones. Researchers’ anxiety is that the fastest growing of these apps are not regulated by the Gambling Commission.

There has been a big increase in what are called social casino apps, which fly below the radar. These include simulated casino games, roulette and slot machines. All involve the original chips or plays being paid for with money, but the rewards are not in money but in tokens that can be used only in the game. One of the most successful is 777 Slots, which allows users to make fast, repetitive slot plays online. The players are nudged into continuing to play and put down stakes, using a software program carefully crafted to excite and engross them. The operators make massive amounts of money, of course, but the apps do not qualify as gambling because, as the Gambling Commission points out in the report, under UK legislation the definition of gambling is that the prize includes “money or money’s worth”. If it does not, it is not gambling. Surely, with the growth of these social casino apps that fall outside this definition, there is potential to cause addiction. The definition has to be changed to create an important extension to the Gambling Commission’s remit.

Nowhere is the revision of the definition of gambling more important than in the world of online gaming. Many researchers talk of the gamblification of the gaming world. In the last decade, it has changed out of all recognition. A decade ago, video games were products to be bought and taken home to be played on a console; now they are given away free as online sales platforms. They lure players into spending more and more money on buying additional benefits in the game to enhance their chances of performing better. Recent studies online show the skilful design techniques that keep players in the game, spending ever greater amounts of money.

This is also happening in the new generation of virtual reality games that are coming through the metaverse, but nothing has attracted as much attention as the loot boxes, which are so worrying because they are accessible to children, especially young males under 18. There is little information about the money being made by the operators, although Juniper Research estimates that the worldwide market is worth $30 billion annually. Young players can buy in-game features that allow them to either spend real-world money or take a stake on in-game items for the chance of winning something of unknown value.

I have read the evidence given to the committee by Dr Zendle—he is the expert on loot boxes—and I have spoken to him at length. He says that loot boxes are similar to gambling in many ways; they provide a powerful gateway for many young people to train as gamblers. They encourage spending, often excessive spending. More importantly, Dr Zendle confirms that, in all his studies, there is a link between problem gambling and spending on loot boxes. His finding is that young people who spend money on loot boxes are more than 10 times as likely to become problem gamblers as those who do not. This rings alarm bells in the report and it should among all of us.

Two Select Committees have already recommended extending the Gambling Act to cover loot boxes and bring them into scope but, in reply to this committee’s report, the Government pointed out that the call for evidence on this issue closed in November 2020. There have been over 30,000 responses. Last summer, the Minister in the other place announced that the government response would come in months. Now we are told that the response will come two years after the consultation has closed—a shockingly long time on this important issue.

I understand that the Government do not want to impose unnecessary regulation on the booming gaming industry, but there are now so many studies and reports to show that loot boxes look and feel like gambling that they should wait no longer. They should urgently ensure that they are regulated under Section 6 of the Gambling Act, as soon as possible.

I ask the Government to look at the bigger picture online as the gambling and gaming worlds collide. They need to take deeper preventive action to deal with problem gambling, particularly among the youngest users. I ask the Minister whether he could look at some of the provisions in the Online Safety Bill, which he will be shepherding through this House. Its duty of care provisions compel larger platforms to take into account the protection of users from harm, both legal and illegal, within the algorithms and software programs which moderate and disseminate content.

This should be the best model for the future of online gaming and gambling. The Gambling Commission’s remote technical standards specify that games should not include features to encourage players to chase losses, nor continue playing when they want to exit the game. Clearly the level of problem gambling in this country means that this is not working effectively. I urge the Minister to consider imposing a duty of care on operators that is baked into the design of games. That would go a long way to alleviating many people’s concerns and, more importantly, would future-proof the technology against the dramatic and unforeseen changes that are coming down the line.

British Museum: Ethiopian Sacred Altar Tablets

Viscount Colville of Culross Excerpts

Wednesday 30th March 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the items have a complicated provenance. They were indeed taken by British troops after the expedition, but some of the items in the collection were themselves stolen by Tewodros II to assemble the collection in the first place. Some of the items have been given back, including by Her Majesty the Queen in 1965 to Emperor Haile Selassie. The British Museum is looking at the complexity of this issue, talking sensitively to the Ethiopian Church and others to decide the best way of caring for them and reflecting that complex past.

[Viscount Colville of Culross (CB)]

My Lords, I declare an interest as a trustee of the Museum of the Home. Museums across Ukraine are desperately trying to save internationally important works of art from being looted by invading Russian forces. Can the Minister tell the House what the Government are doing to help them?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I had the pleasure of addressing the All-Party Parliamentary Group on the United Nations yesterday where there was a special parliamentary briefing from UNESCO on this important matter. The Government are providing initial funding through the Prince Claus Fund to help with the preservation of cultural objects in Ukraine.

Broadcasting White Paper

Viscount Colville of Culross Excerpts

Monday 14th March 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

The noble Baroness is right that there has been rapid change in the last five years. Smart speakers have become widely available and are now owned or accessed by a third of all adults, so the Government recognise the urgency of the issue. We are very conscious that connected audio devices are starting to represent a significant and growing share of radio listening. They have opened new routes for listeners and new avenues for content creators, but they also carry a risk of listener access to radio services being disrupted or limited. We fully recognise those concerns and are committed to taking the necessary steps to ensure continued free-to-air and unintermediated access to UK radio. As for future legislation, that will be set out in the normal way.

[Viscount Colville of Culross (CB)]

My Lords, the withdrawing of funding for Creative Skillset in 2016 has left a gap in audio-only skills training. BBC Sounds Audio Lab and Global Radio’s academy have filled some of that gap, but does the Minister agree that there is a role for the Government to help develop and deliver high-quality audio skills training for a new generation of talent?

[Lord Parkinson of Whitley Bay (Con)]

Yes, I agree with the noble Viscount. As I say, as the review noted, these devices have opened up new avenues for content creators to reach audiences with podcasts and other audio output. There are very exciting job opportunities for people in this area and part of the work we are leading through DCMS is to make sure that people have the opportunity to work in our vastly expanding creative industries.

Public Health: Media Advertising

Viscount Colville of Culross Excerpts

Monday 28th February 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, we are aware of evidence which demonstrates a link between poor body and poor mental health, which can cause people anxiety, depression and many other harms. It is not currently the Government’s intention to legislate on body image in advertising. We want to make sure that any government intervention makes a real and positive difference. We intend to consult on this issue and the harms created by it as part of the online advertising programme, which will allow us further to develop our evidence base on this issue.

[Viscount Colville of Culross (CB)]

My Lords, the noble Lord, Lord Kamall, wrote to Peers saying that the Government intend to consider platform liability for ad content as part of the online advertising programme, which the Minister has just mentioned, but the consultations will not start until spring. HFSS advertising on television has been under consultation since 2017. Why are the Government only now discussing platform responsibility for this ad content? Surely, they are just kicking this important issue into the long grass.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the advertising on television is a matter in the Bill before your Lordships’ House, which introduces a 9 pm watershed for advertising of less healthy food and drink products on TV and on-demand programme services which are under the jurisdiction of the UK and regulated by Ofcom. On advertising in other media, the Government intend to review how online advertising is regulated through the online advertising programme, as I say, but they are happening in different timeframes.

Authors, Booksellers and Libraries: Economic Recovery

Viscount Colville of Culross Excerpts

Monday 10th January 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

This is a matter which has been touched upon in relation to the review of intellectual property rights. The consultation brought forward concerns in the sector about the unauthorised reproduction of books, so it is being looked at. I will write to the noble Lord on the follow-up work that has been done in the meantime.

[Viscount Colville of Culross (CB)]

My Lords, the proposed procurement Bill is supposed to make procurement more accessible to small businesses by ensuring that the social value of contracts is considered when choosing suppliers. Can the Minister assure the House that social value will include supporting local booksellers and suppliers when considering the procurement of books for local libraries and schools?

[Lord Parkinson of Whitley Bay (Con)]

That is a matter for my colleagues at BEIS, but I will certainly take the noble Viscount’s point forward.

BBC: Government Support

Viscount Colville of Culross Excerpts

Thursday 2nd December 2021 Lords Chamber

[Viscount Colville of Culross (CB)]

My Lords, I, too, congratulate the noble Lord, Lord Bragg, on having obtained this debate. I declare an interest, having been a BBC producer for 25 years. I am now a freelance producer working for United Kingdom and United States channels.

I support noble Lords who have spoken in favour of the value of the BBC to this country, but my fear right now is the big cuts taking place in staff in BBC news and current affairs. In BBC studios there are cuts to drama, arts and history, all of which will diminish the broadcasting environment in this country and impoverish viewers.

This afternoon I want to concentrate my comments on one particular area. After all, this debate is about the BBC’s value to a wider global audience. It is a service which is very close to my heart: the BBC Russian service, which faces constant threat of censorship. Every Friday night, the Justice Ministry in Moscow issues a list of journalists and organisations which are designated as foreign agents. From that moment, the designated journalist has to put a disclaimer, “foreign agent”, on all their posts, whether they are news items or on their child’s school’s social media page. Failure to do so three times could earn a prison sentence of up to five years. Not surprisingly, as a result there is great fear among journalists, people refuse to give interviews to them, and their work is tainted.

Independent Russian media outlets such TV Rain and Echo Moskvy have been designated foreign agents. Recently the BBC journalist Andrei Zakharov went on the list. Imagine the pressure on the 144 journalists of the BBC Russian service, many of them working in country, in that environment. Since I first worked in the USSR in 1989, I have known the importance of the Russian service as an independent voice and a projector of British values. At that time, I worked with a journalist from the Russian service who had been allowed to visit the country for the first time in 35 years. Wherever we went, she was greeted as a conquering heroine for keeping the voice of freedom alive through the long years of communism. Since the arrest in January this year of opposition leader Alexei Navalny, repression against independent and opposition voices in Russia has been dramatically ramped up, while this week the head of MI6 warned that Russia poses “an acute threat” to this country.

The BBC Russian service is now more important than at any time since the fall of the Soviet Union, reaching 5 million Russian users weekly and seeing a huge rise in young people engaging via social media. In a country where any criticism of the regime or support for the opposition is repressed and rarely heard in the mainstream media, this service has run brave stories. It published an important investigation into Russian mercenaries suspected of war crimes while being paid to fight in Libya, and connected them back to Yevgeny Prigozhin, the man they call “Putin’s chef” because of his ability to cook up murky deals for the regime.

Unlike many other outlets, the BBC Russian service has a network of journalists across the country whose reports take the real temperature of what is happening in the country. In the Russian Far East, they covered the firing of a mayor because he dared to be independent from the regime and allowed the voices of his supporters to be heard. In the small town of Dimitrovgrad, the BBC Russian service one was one of the few that reported on an Orthodox priest who was fired and then vilified for saying of the opposition leader Navalny, “I used to criticise him, but now I want to shake his hand”. Last week, when 52 miners were killed in a mining explosion in Siberia, the BBC was one of the few media outlets which carried the voices of the desperate, bereaved families. They said the miners knew the management was ignoring safety protocols and deactivating the methane gas monitors, but poverty and lack of opportunity forced them to continue working in the mine.

The BBC Russian service costs £5.9 million a year, 75% of which is paid from the licence fee. I hope that the Government decide on an inflation-linked settlement. I have no doubt that failure to do so will adversely affect the BBC World Service and its language services. I also hope that the FCDO will very soon confirm its continuing commitment to the additional funding of these services, as laid out in the October spending review but as yet not confirmed beyond March 2022.

I urge the Minister to protect the BBC and ensure that it flourishes. Domestically it is important as a trusted source of news, and internationally, especially in repressive regimes such as Russia’s, it is a lifeline for independent thought and the projection of British values. A strong BBC will maintain our standing in the world, which the Prime Minister says is a central part of this Government’s global Britain policy.

Ofcom: Appointment of Chair

Viscount Colville of Culross Excerpts

Tuesday 26th October 2021 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

This is an important point that we have also discussed in the context of the Telecommunications (Security) Bill, which has its Third Reading in your Lordships’ House later today. The Government have been working closely with Ofcom to prepare for the new regulatory regime. This includes work to ensure that it has the resources to carry out its functions as regulator effectively and, vis-à-vis telecoms security, that includes another £4.6 million this year.

[Viscount Colville of Culross (CB)]

Will the Minister listen to the Conservative chair of the Culture Select Committee in the other place, who demands that the Government make clear in their new advert for the chair of Ofcom that previously unsuccessful candidates such as Paul Dacre cannot reapply?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the very clear rules about public appointments mean that, in reopening the competition, everybody is allowed to apply, including people who had applied for the first round. I will not be drawn on specific people, but we want to ensure that a diverse and high-quality range of candidates apply and are put to Ministers to choose from.

Gambling Commission: Data

Viscount Colville of Culross Excerpts

Wednesday 20th October 2021 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

All gambling advertising, wherever it appears, is subject to strict controls on content and placement. As part of the broad review of the Gambling Act, we have called for evidence on the impacts of advertising to make sure that the right controls are in place and, particularly, are effective in the digital age.

[Viscount Colville of Culross (CB)]

I would like to build on the question asked by the noble Lord, Lord Browne. Recent research has shown that a quarter of gamblers are 400% more likely to take out payday loans than the average person. It is a shocking figure. Surely the Minister would agree that giving the Gambling Commission access to anonymised gamblers’ data would help uncover the causal link between the two and enable the commission to step in and prevent further harm to gamblers?

[Lord Parkinson of Whitley Bay (Con)]

I certainly agree with the noble Viscount that the data is crucial to understanding the causes of harm and what we might be able to do to tackle it. That is why the Gambling Commission is taking forward work on the national repository of operator data. It is also working closely with credit reference agencies and others to understand what role financial data can play in preventing gambling harm.

UK Journalism (Communications and Digital Committee Report)

Viscount Colville of Culross Excerpts

Wednesday 13th October 2021 Grand Committee

[Viscount Colville of Culross (CB)]

I declare an interest as a freelance TV series producer developing content for Netflix and the Smithsonian Channel.

I add my thanks to the noble Lord, Lord Gilbert, for his able chairing of the Communications and Digital Select Committee, on which I, too, have the honour to serve. This afternoon I will concentrate my remarks on the recommendations in this report to make the media financially sustainable and to support freelancers, who are the backbone of the creative industries and the media.

We heard during the inquiry about the financial pressures on so many media businesses as they face an onslaught on their revenue from tech giants. As the noble Lord, Lord Gilbert, said, the committee has reported on the huge concerns that these companies are using their monopoly control of the digital advertising supply chain to drain the lifeblood from media companies. I am pleased that the DMU has been set up to confront this digital ad monopoly and I, too, urge the Minister urgently to introduce legislation to ensure that it is given statutory powers.

Likewise, media revenues are suffering from underpayment or lack of payment for the use of their news content on tech platforms. The Government’s response is that a code of conduct is being introduced. I urge the Minister to go much further and look at introducing a bargaining code. It must be fair to media companies both large and small, but, if our journalism is to be financially sustainable, it needs to be able to rely on an income stream for the use of its news content by the tech giants.

I also want to use this debate to draw attention to the plight of the people who supply the content: the journalists. They are the ones suffering as the media battles to reverse the downturn in its fortunes. Staff jobs have been cut to be replaced by freelancers. According to the ONS, the number of freelance journalists has doubled in the 10 years to 2019, and during the last two years that trend has accelerated as staff jobs have continued to be cut. Media companies such as the BBC and HuffPost have replaced employees with freelancers, while smaller companies now rely almost entirely on freelancers for copy.

However, not only are the rates for freelance copy falling like a stone, but freelancers are suffering from late payment, payment on publication and unfair kill fees. Freelancers have always suffered from kill fees when their content is not used. Sometimes this is because it is not of good enough quality, but often it is because the news cycle has moved on since the article was commissioned and it is no longer needed. As a result, the journalist can receive as little as 20% of the original fee negotiated.

An increasing problem, especially in the last few years, is the late payment of fees. I spoke to one journalist who had been commissioned to write a series of articles for a medium-sized media company. The 30-days payment on their invoice was repeatedly missed. Each time the journalist called the company, they were told that it was being dealt with by the financial department and that the delay was just a logistical difficulty. After many hours of calls and emails, most of the payments were six months late and some were even nine months late. In desperation, the NUJ took the company to court for breach of contract on the freelancer’s behalf. As a result, they were paid but knew that they would never receive another commission. This story is very familiar to freelancers, especially those working for medium-sized media and small online companies.

When this issue was raised in the report, the Government’s response was that they should not interfere in contract law and that freelancers should negotiate protection for themselves. However, that is to ignore the massive imbalance between the companies and the sole-trader freelancers. It is David against Goliath. In the uncertain world of freelancing, all people have is their reputation, and once that is stained by an attempt to renegotiate a contract or a legal case to reclaim fees, they are tarred as “troublemakers” and work dries up pretty quickly. The report recommends that the Government should consult on legislation strengthening the rights of freelancers, and that the Small Business Commissioner should receive extra powers to address the growing problem of these unfair payment practices.

The Government’s response has been a welcome consultation to look at the new powers for the Small Business Commissioner. I have spoken to the dynamic new holder of the post, Liz Barclay, who has been in situ for 100 days, but who reckons it will take three or four years for legislation to be enacted and these powers to take effect. In the meantime, she is campaigning to make late payers aware of the havoc they are creating. Currently, the Commission can deal only with businesses employing more than 50 people. In an industry with decreasing numbers of employees and increasing numbers of freelancers, this criterion needs to change so that much smaller companies come within her scope. I ask the new Minister to take this very seriously and pass on these concerns to his colleagues in BEIS. Give the Small Business Commissioner the powers to campaign against all bad payers and tilt the balance towards the Davids and away from the Goliaths.

At a time when we have heard so much about supporting the British worker, in the face of skills shortages it appears that, instead of getting higher pay, many of these British workers are struggling to make a living. Action needs to be taken now. Every day, British media companies are reducing news content and failing to cover council meetings and courts and to disseminate vital information to keep citizens informed so that they can play their part in our democracy. I urge the Minister to take these issues seriously and deal with them urgently.