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

Baroness Bakewell of Hardington Mandeville Excerpts

Wednesday 27th April 2022 Grand Committee

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I congratulate the noble Lord, Lord Grade of Yarmouth, on setting out the case for gambling reform so eloquently. I regret that I was not a member of his Select Committee. I declare my interests as a vice-president of the LGA and a vice-chair of Peers for Gambling Reform.

The report Gambling Harm—Time for Action covers many aspects, including personal and economic. It made more than 50 recommendations to alleviate the problems associated with gambling harm, including bringing loot boxes in video games within the scope of the Gambling Act 2005. Children are particularly targeted via these, as the noble Viscount, Lord Colville, alluded to. Gambling can take place in many ways: at a racecourse, at a sporting event, online, at a casino or in a betting shop—there are myriad ways to do it.

District and unitary licensing authorities have a statutory role in regulating local gambling premises. Licensing and planning teams do their best to prevent gambling-related harms occurring on premises. This may include identifying specific local gambling risks. Currently, councils do not have the power to prevent new gambling premises opening. These could be sited close to schools, treatment centres or housing estates, thus leading to a situation where several gambling outlets may be close together, making it very difficult for those with addictions to avoid the temptation to gamble beyond their means. It is therefore important that councils are given powers over the possible location of gambling outlets in their areas in order to prevent clustering. This would help reduce the risks to the vulnerable. Are the Government prepared to consider this?

There is a difference between gambling in betting shops, online gambling and the gambling that takes place at a racecourse. Being shut indoors with a computer or mobile phone and continually betting online because you have an addiction that is ruling your life is a miserable existence. But the gambling that takes place in the open air at a racecourse needs a more nuanced approach. The business models that apply to off-course and on-course gambling should be acknowledged and dealt with differently. In both instances, the identification of problem gamblers should be simplified, and effective measures should be taken to ensure that those addicted cannot gamble beyond their means.

Running up thousands of pounds’ worth of debt is deeply depressing, and help should be readily available to those affected. Gambling can be fun—many enjoy the occasional flutter—but it can also become an overwhelming addiction that ruins lives. It is important that gambling harms are clearly understood and that education, prevention and treatment programmes are sufficiently well funded to be accessible and effective. The isolation caused by the pandemic and the current cost of living crisis, coupled with a significant move to online gambling, are putting an increased number of people at risk of becoming entrapped by gambling.

The introduction of a mandatory 1% levy on gross gaming yield for the gambling industry, to help to fund a significant expansion of gambling treatment services, is essential. During the passage of the Environment Act, the phrase “the polluter pays” was frequently used. It is appropriate to use the same phrase in relation to a levy on the gambling industry.

Much of the support and prevention work for those suffering from gambling harms is provided by charities outside of the NHS. However, it is often the case that the NHS picks up the cost of dealing with the aftermath of the mental health issues of families affected by gambling-related suicides. The National Gambling Treatment Service, which is funded by GambleAware, provides advice through a helpline and essential treatment for sufferers of gambling disorders—I hear what the noble Lord, Lord Smith of Hindhead, says. Raising awareness is essential, especially for young men, who may regularly gamble at sporting events. It is clear that no one organisation has a catch-all solution but, by working in partnership, more is achieved, much suffering is alleviated and tragic deaths are avoided.

A levy would help pay for extra capacity in health officials, debt advisers and faith leaders to respond to the likely growth in the number of those suffering from gambling harms. Can the Minister say whether the Government are ready to acknowledge the need for a 1% levy on the gambling industry? Raising awareness of gambling harms is essential before young people and children become entrapped. Children are particularly susceptible to online games and television advertising, which draw them in. The stigma associated with gambling harms needs careful handling in order to allow those affected to access the services which will help them.

I am pleased that we are holding this important debate shortly—I hope—before the publication of the gambling White Paper. One crucial reform the committee called for was online gambling affordability checks to ensure that people do not lose more than they can afford. There can be catastrophic consequences for those who gamble beyond their means and for their families, who are often left devastated. I was encouraged to hear that in a speech to the GambleAware conference in December 2021, the Minister responsible for the gambling industry recognised that these checks are key in helping to prevent gambling-related harm. The question now is how they should apply.

The Social Market Foundation published a powerful report in August 2020 which recommended the introduction of a standardised affordability threshold set at losses of £100 per month. At this stage customer due diligence checks should be applied by gambling operators. However, this does not always happen. A study carried out by the University of Liverpool found that 73% of slot players and 85% of non-slot players have a monthly loss of £50 or less. Other studies have similar conclusions, with the PwC report for the Betting and Gaming Council stating that the median spend is up to £75 per month. The proposed soft cap of £100 would allow most gamblers to enjoy a flutter without any major checks. Do the Government agree with the SMF’s carefully developed proposals and will they consider setting the affordability threshold at £100 per month?

The Government’s review of the gambling White Paper has taken place, but it has not yet been published. Can the Minister give an undertaking that that will take place in the next Session of Parliament and before the Summer Recess? Public Health England estimates the economic cost of gambling harms at £1.27 billion per year. Given this figure, surely there can be no reason not to take action now, especially as many families are suffering as a result of the increased cost of living and energy prices as well as struggling with gambling debts.