Oral Answers to Questions

Chris Philp Excerpts

Thursday 18th November 2021 Commons Chamber

[Carolyn Harris (Swansea East) (Lab)]

5. Whether she plans to publish a White Paper on the gambling review.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Chris Philp)]

I thank and commend the hon. Member for her energetic campaigning and leadership on this issue over many years as chair of the all-party parliamentary group for gambling related harm. We had a constructive meeting, along with my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and a Member for a fine constituency in Scotland—the hon. Member for Inverclyde (Ronnie Cowan)—just yesterday. We are in the process of preparing a White Paper that will set out our vision for gambling regulation in the coming months. I look forward to working closely with members of the APPG on this issue in the weeks ahead.

[Carolyn Harris]

The recent Public Health England report into the impact of gambling harm found that at-risk gamblers were twice as likely to gamble online than the rest of the general gambling population, so can we be assured that the forthcoming gambling White Paper will protect those most vulnerable to gambling harm by ensuring that restrictions to online stakes are introduced at the same level as those to on-land stakes?

[Chris Philp]

The hon. Lady is absolutely right to refer to those who suffer acute harm. Yesterday I met many people whose relatives have committed suicide, or who have lost their homes and whose families have been destroyed, to discuss the issue. I agree with the PHE report that online gambling can often be a lot more pernicious and addictive than in-person gambling. We will certainly be looking at that. We are acutely aware that the restrictions introduced to land-based stakes for fixed odds betting terminals could be applied online in some way, and are carefully studying how that could be calibrated.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

Will my hon. Friend look seriously in the White Paper at the abusive use by gambling companies of VIP rooms, through which companies deliberately target those who are gambling massively and losing massively to encourage them to gamble more and lose more? It is an immoral practice. Will he make certain in the White Paper that the Government will deal directly and immediately with this issue?

[Chris Philp]

I thank my right hon. Friend again for our meeting this week. I agree that actively encouraging—indeed, even inciting—people to gamble more without reference to affordability or their ability to pay is a damaging practice. We certainly intend to address that through the White Paper.

[Liz Twist (Blaydon) (Lab)]

6. What steps the Government is taking to help ensure that those responsible for the collapse of Football Index are held to account.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Chris Philp)]

The Gambling Commission has revoked BetIndex’s operating licence and senior members of that company have surrendered their personal management licences. The Gambling Commission has also referred the company to the insolvency service to consider whether the directors breached insolvency or even fraud laws. We look forward to the Insolvency Service’s report on the conduct of those directors.

[Liz Twist]

Too many of my constituents have been in touch to say that they have lost substantial amounts of money on the Football Index, so will the Minister explain further what is being done to help the Gambling Commission to understand these complex betting propositions in order to ensure better protections for customers, such as my constituents?

[Chris Philp]

The Government commissioned a detailed report by Malcolm Sheehan QC that was published towards the end of September. The report looked to ensure that all the relevant lessons are learnt, so that people who gamble are protected. Regarding those who lost money to BetIndex, the wind-up proceedings are ongoing at the moment and it is likely that some amounts will be available to be reimbursed to creditors, which would include customers. We should obviously let that process unfold.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Chris Philp)]

I commend my right hon. Friend for his continued active advocacy on behalf of British horse racing and Newmarket in particular. I am pleased to tell the House that racecourses are accessing £21 million from the sport survival package. They have also had £28 million in cash-flow and hardship funding, in addition to which the Horserace Betting Levy Board provided £97 million in 2019-20 to support the sport.

[Matt Hancock]

I am very grateful for the work that the Department and the Minister have done in the pandemic to support horse racing, but as a major contributor to the economy and soft power, and with one in three jobs in Newmarket in my constituency connected with horse racing, is it not vital that we strengthen further the horserace betting levy to ensure that all betting makes a contribution and to ensure that we get the support for horse racing, which is such a glorious sport?

[Chris Philp]

I agree entirely about the importance of horse racing to the UK, both economically and more generally. As I have said, the levy contributed £97 million in the year before the pandemic, about 10% more than the forecast. Even in the pandemic year 2020-21, it contributed £80 million, so generally speaking the levy has returned more money than was initially expected. However, we are always willing to look at evidence, so if there is anything that my right hon. Friend would like to send in that we could carefully consider, I would be delighted to look at that.

[Antony Higginbotham (Burnley) (Con)]

T2. If she will make a statement on her departmental responsibilities.

--- Later in debate ---

[Ronnie Cowan (Inverclyde) (SNP)]

The actions of Football Index can only be described as scandalous. The Scottish National party called for an inquiry, and that has been delivered. Can the Minister guarantee that the actions the Government take as a result of the inquiry will ensure that such shameful behaviour by the gambling firms will never be repeated?

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Chris Philp)]

I thank the hon. Member for his question. We are taking this very seriously. As I said on an earlier question, a detailed review by a QC is being conducted already to make sure that the regulatory action—whether by the Gambling Commission or, in different circumstances, the FCA—is appropriate. It is important that these gambling firms are looked at very carefully, and it is our intention that the Gambling Commission do that.

[Jessica Morden (Newport East) (Lab)]

Can I reiterate the earlier question from my hon. Friend the Member for Blaydon (Liz Twist) about the collapse of Football Index, and reiterate the need for Ministers to look at the issues of better redress and the failings in this case, on behalf of my constituents affected?

[Chris Philp]

Yes, it is being looked at extremely carefully, and I can assure the hon. Lady that that work is going on.

The Attorney General was asked—