Statutory Gambling Levy

Debate between Carolyn Harris and Lord Spellar

Tuesday 7th June 2022 Westminster Hall

[Carolyn Harris (Swansea East) (Lab)]

I beg to move,

That this House has considered proposals for a statutory gambling levy.

Today, we will consider the introduction of a statutory gambling levy to replace the inadequate voluntary model, and it is a pleasure to do so under your chairmanship, Mr Betts. I draw the House’s attention to the fact that at the back of the room we have bereaved families of people who gave their lives up to gambling addiction. I thought it only fair to highlight that at the start.

As we all know, the gambling review was launched over 18 months ago, and most of us thought that by now we would be discussing the detail of the White Paper in the Chamber, but unfortunately, that is not the case. I am hoping that good things come to those who wait. With just a couple of weeks to go until the highly anticipated publication of the long overdue Government reform of our gambling legislation, I am pleased by the shift in direction towards reform that the Department for Digital, Culture, Media and Sport has signalled. Press reports over the past few weeks of the Government’s plan to introduce limits to online stakes and to pioneer an affordability system to prevent people from gambling beyond their means are welcome indeed.

Stake limits online should be comparable to those for land-based venues, and to be effective, any system of affordability must be run independently of the industry and have a single customer view. This is not the time to take half measures, and only banning front-of-shirt sponsorship without tackling the dozens of other ways in which gambling firms advertise would represent a missed opportunity. That would not address the harm that advertising can lead to, nor would it reduce children’s exposure to advertising as they watch sport on their screens.

Given that the previous gambling legislation review took place well over 15 years ago, the White Paper needs to make meaningful, robust and significant proposals. However, we are here today to discuss a specific proposal that I believe is vital to the success of the gambling review and which must be at the centre of the Government’s plan: a statutory levy on gambling operators to provide long-term funding for research, education and, most importantly, treatment of gambling-related harm.

Gambling is leading to significant harm in this country, and more than 55,000 children aged between 11 and 16 are gambling addicts. The gambling industry spends more than £1.5 billion a year on advertising, and 60% of its profits come from the 5% who are already problem gamblers or at risk of becoming so. On average, one problem gambler commits suicide every single day, and we have families here today who have experienced such loss.

Funding for research, education and treatment with respect to gambling-related harm in the UK is facilitated through a system of voluntary contributions from gambling operators, which should be 0.1% of their gross gambling yield. That goes to GambleAware, and each year, at current levels, that equates to donations totalling around £10 million. From there, funding is allocated by GambleAware to a range of third-sector organisations, academic institutions and two NHS providers. That might sound like a sensible amount of money and a seemingly sensible system, but if we consider the scale of the cost of gambling harm and how poorly the voluntary levy is operated, it soon becomes clear why this is a woefully inadequate method of providing funding for research, education and treatment.

Because of the voluntary nature of the contributions, operators can vary the size of donation that they send to GambleAware, which means there is a lack of consistency in the amount donated each year. Operators even have discretion over how much they contribute, with some operators giving as little as a few pounds. Alongside that ridiculous situation, operators are able to decide when donations are made. As a result, there is a complete lack of stability in the voluntary funding model. Recipients cannot plan budgets effectively, or ensure that long-term research projects or education programmes are properly funded, when they have no idea whether there will be enough money to continue them.

To make things worse, operators are able to determine who their contribution goes to, meaning that the voluntary system allows the gambling industry to retain a sense of control over the funding. That damages the independence of the service providers, academic institutions and other third-party recipients of funding, as well as the effectiveness of the levy in reducing wider gambling harms in the UK.

[John Spellar (Warley) (Lab)]

Will my hon. Friend give way?

[Carolyn Harris]

I will make some progress, because I have a long speech and a lot of people want to speak.

Earlier this year, NHS clinicians announced that they would stop taking money from the gambling industry to treat people with addiction. While I agree with the sentiment, I worry that that will only hurt treatment services in the long run. We need to find a better long-term solution to allow the NHS to access funding that comes from the industry but is not controlled by it.

The all-party parliamentary group for gambling related harm and Peers for Gambling Reform have recognised and commented on the limitations and failings of the current voluntary system. That view is shared elsewhere. Back in March, Lord Foster of Bath, chair of Peers for Gambling Reform, received a reply to a letter, from Andrew Rhodes, chief executive of the Gambling Commission. In his reply, Mr Rhodes stated that

“the current voluntary system does not provide long-term certainty of funding to support planning and commissioning, it does not impact on all operators fairly, and it is perceived as allowing gambling operators too much control over the availability and destination of funds.”

--- Later in debate ---

[Carolyn Harris]

I am not giving way. Even GambleAware, the charity that receives voluntary donations, commented recently on the woefully inadequate nature of the voluntary levy. Its chief executive, Zoë Osmond, said in April that the industry has never reached its target of achieving 0.1% of GGY—gross gambling yield—from the voluntary industry levy. The vast majority of the industry continues to donate in support of research, education and treatment at extremely low levels.

[John Spellar]

I thank my hon. Friend for giving way. I refer to my entry in the Register of Members’ Financial Interests. She referred to expenditure being tied to donors, but the industry puts billions into the Treasury through taxation, so should that not be properly done through the national health service? Also, will she say what she actually wants for the industry? Does she want to close down gambling, or does she acknowledge that millions of people enjoy gambling perfectly safely and that abuse is going down?

[Carolyn Harris]

If my right hon. Friend listened to the rest of my speech, he might hear some information about where that is not the case. As for me being anti-gambling, I am certainly not. I spent last Thursday night at Ffos Las racecourse having a thoroughly good time placing bets on horses.

Clearly, the voluntary levy is not fit for purpose. It lacks consistency, transparency and, crucially, accountability. So, what is the solution?