Policing and Crime Bill

Baroness Howe of Idlicote Excerpts

Report: 2nd sitting (Hansard): House of Lords
Wednesday 7th December 2016 Lords Chamber

[The Lord Bishop of Bristol]

My Lords, I will speak to Amendments 173C, 196A and 200A in my name and I support Amendment 173B, in the name of the noble Lord, Lord Beecham. I am grateful for the way in which he introduced this group of amendments.

Members of your Lordships’ House will be only too aware that the House has rehearsed the arguments around betting shops, and in particular fixed-odds betting terminals, numerous times in the past year, and there seems to be little need to repeat them here in detail. We know that violent crime is on the increase in betting premises—up 68% in London over the past five years—and it seems very likely that the increasing reliance of betting shops on FOBTs is a key reason for this trend. I read just last night that of the 523 serious robberies committed in commercial premises in 2015, 200 took place in betting shops. Given the increasing threat of violence—which the noble Lord, Lord Beecham, has spoken well about—that betting shop staff face from organised thieves as well as angry, frustrated or opportunistic customers, the amendments in this group are an entirely reasonable attempt to help bring the situation back under some kind of control.

My amendment, which was first proposed in Committee by my right reverend friend the Bishop of St Albans, would give licensing authorities greater scope to impose conditions on the use of gaming machines in betting premises, with the aim of enabling those authorities to better enforce the licensing objectives of preventing crime and protecting the vulnerable. It would also clarify the ability of licensing authorities to undertake a cumulative impact assessment, as well as taking other risk factors into account. Given that fixed-odds betting terminals now make up 56% of the profits of a high street betting shop, it seems obvious to me, at least, that licensing authorities should be able to impose conditions on the use of these machines in areas where this is a high risk of gambling-related harm.

This amendment is, of course, limited in scope. Even if licensing authorities could impose conditions on the use of gaming machines, there would be limited opportunities to do so in practice. The “aim to permit” licensing framework of the Gambling Act 2005 is so heavily skewed in favour of the betting industry that licensing authorities have great difficulty imposing any conditions whatever on betting premises, the threat of judicial review deterring all but the boldest local authorities from taking significant measures to combat gambling harm through conditions. That is why I support the amendment in the name of the noble Lord, Lord Beecham, which would make minimum two-person staffing a mandatory condition of a betting premises licence. Although, as the Minister pointed out in Committee, licensing authorities can in theory impose conditions requiring two-person staffing levels, in reality the practice is much more difficult. Under the current licensing framework, only a mandatory condition can ensure adequate protection for staff.

In Committee the Minister suggested that amendments such as these should be properly considered in the round as part of the Government’s review of stakes, prizes and licensing arrangements. I entirely agree, so I hope the Minister can reassure the House that the suggestions in these amendments will be thoroughly considered as part of the Government’s review.

First and foremost, can the Minister reassure me that the Government will look at how the Gambling Commission might widen the scope of the conditions a licensing authority might impose in relation to gaming machines? Will they look in particular at the potential for licensing authorities to impose conditions that restrict the ability of customers to engage in anonymous fixed-odds betting terminal gaming—which would be possible without changes to primary legislation? I know that the betting industry is planning to trial new methods of identification, including biometric identification. If those trials prove successful, licensing authorities should be able to require the use of such methods in areas that are particularly vulnerable to gambling-related harm.

Secondly, will the Government encourage the Gambling Commission to issue guidance on the potential for licensing authorities to undertake cumulative impact assessments, as is currently possible with alcohol licensing? The latest research shows that people living near a betting shop cluster are at greater risk of gambling-related harm, and licensing authorities should be able to reflect that in policy-making.

Finally, will the Government look at the way in which the current “aim to permit” licensing framework inhibits the ability of licensing authorities to tackle gambling-related harm through the use of conditions? Colleagues have spoken to licensing authorities, which feel that they simply have no chance of imposing meaningful conditions when confronted by a betting industry armed to the teeth with eminent QCs. If the Government are serious about giving meaningful power to local decision-makers, they need to review this framework as a matter of course; otherwise, amendments to mandatory conditions, such as that proposed by the noble Lord, Lord Beecham, will be the only way to make effective progress on reducing crime or protecting staff.

[Baroness Howe of Idlicote (CB)]

My Lords, I am very pleased to speak in support of Amendments 173B and 173C in the names of the noble Lord, Lord Beecham, and the right reverend Prelate the Bishop of Bristol. I have added my name to both.

Beginning with Amendment 173C, I support the proposal to devolve more powers to local authorities so that they can determine, going forward, the number of fixed-odds betting terminals in their area. As has been said before, fixed-odds betting terminals present a very distinct challenge that results from the unique way in which they combine high stakes with a very high speed of play, such that it is possible to lose £18,000 in an hour.

Rather than repeat the statistics that I cited in our debate on these amendments in Committee, I want to highlight a study specifically of the play of people with loyalty cards. This is particularly interesting because those with loyalty cards tend to gamble regularly, and the research demonstrated that 37% of such users manifest problem gambling behaviours. Are we as a society really happy to countenance accepting a form of entertainment in relation to which regular engagement exposes nearly 40% of those partaking to serious risks?

A study published in 2016 on addictive behaviours in 72 homeless adults in Westminster identified elevated rates of problem gambling in the group, with 82.4% of those reporting problem gambling stating that their gambling preceded their homelessness. The authors of the report said that,

“our homeless participants identified Fixed Odds Betting Terminals as the most problematic form of gambling”.

In responding to the debate on these amendments in Committee, the Minister was keen to highlight the success of the Gaming Machine (Circumstances of Use) (Amendment) Regulations 2015, which require gamblers wishing to bet more than £50 on B2 FOBTs to do so either through a verified account or via over-the-counter authorisation. However, an assessment by the Department for Culture, Media and Sport revealed that only a limited number of stakes—between 8% and 11%—were being placed through verified accounts and that people placing bets with staff occurred in only around 1% of the sessions. Thus the uptake for stakes being placed through verified accounts and OTC authorisation was incredibly low and suggests that the Government’s attempt to track players has been unsuccessful.

In addition, the DCMS evaluation report noted that from 2014 to 2015 there had been a £6.2 billion reduction in bets over £50 but a £5.1 billion increase in stakes of between £40 and £50. This suggests that the intervention is simply changing the way that players play and is not seriously curbing problem gambling connected to FOBTs. The fact that increasing numbers of people are betting just under £50 every 20 seconds is deeply disturbing.

On Amendment 173B, I note that in her response to the debate in Committee the Minister said:

“The Association of British Bookmakers’ Safe Bet Alliance provides specific guidance on staffing security in bookmakers, which was drafted with the input of the Metropolitan Police. Members of the Association of British Bookmakers operate single staffing only when a risk assessment has been undertaken”.—[Official Report, 9/11/16; col. 1231.]

The implication of what she said seemed to be that this was satisfactory. However, given the extensive evidence of gamblers vandalising FOBT machines after losing apparently considerable sums of money, given also that betting shop staff recall having felt intimidated and scared when individuals have lost money on FOBT machines, given too that betting shops accounted for more than 200 of the 523 serious robberies against commercial properties in London in 2015, given that the Association of British Bookmakers has a very strong incentive not to allow its main source of income to be seen as a catalyst for public disorder, and, lastly, given that, although the Metropolitan Police can provide advice, it does not make law, it seems to me that we should not conclude that the current arrangements are satisfactory.

The Prime Minister has said that she wants to make Britain a country that “works for everyone”, as has already been mentioned. Although FOBTs are certainly working well for betting shops, they are not working well for other people—especially those in deprived communities, where a large number of FOBTs are located.

In conclusion, I emphasise two things. First, although I strongly support the proposal to give local authorities powers to limit the number of FOBTs, thereby providing the opportunity to limit the number of these dangerous machines, is it not far more important to make FOBTs less dangerous? To this end, I am very committed to the Bill introduced by the noble Lord, Lord Clement-Jones, in the previous Session, which proposed reducing the maximum stake per spin from £100 to £2. That is the big issue, and I very much hope that the Government will adopt this solution in their gambling review.

Secondly, I hope that the Minister will accept these amendments today, but if she says that we must await the outcome of the review on this matter, I hope that what I have said at this stage and previously will be taken into account as part of the review process. Finally, can she say when she expects the results of the gambling review to be published?