Statutory Gambling Levy

Clive Betts Excerpts

Tuesday 7th June 2022 Westminster Hall

[Several hon. Members rose—]

[Mr Clive Betts (in the Chair)]

I am just observing how many hon. Members want to speak in the debate. There are five. That means a guideline of about seven minutes for each Member before we come to the winding-up speeches.

--- Later in debate ---

[Craig Whittaker]

The one area where we already have a levy is the horse-racing sector, which has a strong link with gambling and betting. What does my hon. Friend feel that an additional levy on that sector will do to those jobs and on horse-racing?

[Mr Clive Betts (in the Chair)]

Order. I remind hon. Members that seven minutes was the guideline.

[Scott Benton]

Time is short, so I will not directly respond to the points made by my hon. Friend the Member for Calder Valley (Craig Whittaker), but I suspect he knows my feelings about an additional statutory levy, which is essentially a tax. It could create problems for horse-racing at a time when we are already considering other prohibitive measures that would affect sponsorship, and other elements of the debate that could have a further impact on horse-racing and, indeed, all sports.

Third sector charities are already effective and are making real progress. In contrast, a statutory levy looks like a retrospective solution to a problem that simply does not exist at the level that anti-gamblers want policymakers to believe. Is it really designed to help research, education and treatment, and the wider public as a whole, or is it a punitive measure to placate the anti-gambling lobby? A statutory levy will not boost funding for RET. The money is already in the system, and there is a bigger, broader commitment for the future. The Government need to tread carefully if they are to avoid hurting businesses and putting thousands of jobs at risk.

--- Later in debate ---

[Paul Blomfield]

As I said in an intervention on my hon. Friend the Member for Swansea East, from my experience of tackling the payday lending industry on a cross-party basis, the argument that it came up with to defend its own profits was, “Be afraid of illegal loan sharks, so do nothing about us and the misery that we are causing, because there is that threat out there.” We need to tackle both. That strategy needs to be developed and funded by a statutory levy.

Let me return to Jack’s case and the conclusions that were raised at his inquest by the coroner, who insisted that, despite small changes in regulation and treatment since Jack’s death, significantly more needs to be done by the state to protect people. Crucially, Jack did not know his addiction was not his fault. Liz and Charles think that if his addiction had been recognised as a health problem and treated more effectively—if he had been given the correct information and the doctors had been better informed—he could still be alive today, and so would many others.

Medical experts agree. Dr Matt Gaskell, who leads the NHS Northern Gambling Clinic, explained to the inquest that the treatment Jack received was insufficient, and he spoke about the impact gambling has on the brain, causing major changes as addiction develops quickly. He underlined that the whole public are at risk, not just a vulnerable few, and I know that that is also the view of the Minister responsible, the Under-Secretary of State for Digital, Culture, Media and Sport, the hon. Member for Croydon South (Chris Philp), who has previously said that gambling harm could affect any of us.

Obviously, a new approach is needed—one that promotes harm prevention and information about risk, as well as treatment and provision for early diagnosis. We have the skills and knowledge in our NHS, but we need the investment to make those services available to all who might need them. The hon. Member for Blackpool South said the NHS should be doing much more, and he is right, but the big flaw in his argument is that that should not be at the cost of other NHS services. It should be based on the “polluter pays” principle: those who do the harm should cover the cost of addressing it.

On the intervention made by the hon. Member for Shipley (Philip Davies), the levy should be set at the rate necessary to cover the costs of mitigating the harm and providing the treatment. If the problem gets worse, the levy may have to go higher; if it is reduced as a consequence of effective treatment, the levy may go lower. The levy should be responsive and based on the “polluter pays” principle. However, I am conscious of the time and of the fact that you are glaring at me, Mr Betts, so I will finish on that point. I hope that the Government recognise the power of these arguments.

[Mr Clive Betts (in the Chair)]

The guideline is now that speeches should be six minutes. Can we try to stick to that, to make sure all colleagues get in?

--- Later in debate ---

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Betts. I thank my hon. Friend the Member for Swansea East (Carolyn Harris) and congratulate her on securing the debate and on the passionate way she outlined the case for the Government to act faster to introduce a statutory levy.

Gambling-related harm is an issue that many, including myself, care deeply about, not least because of the detrimental impact it has on society as a whole, but also because it is far closer to home. Gambling-related harm runs through my constituency. Its impact is felt by people with lived experience of gambling harm and their family and friends. Faced with the real-life stories of my constituents, I simply cannot understand how anyone does not support reform. The mere fact that gambling harm is happening every day is proof enough that our current gambling regulatory system is failing us.

The voluntary system, which relies on the goodwill of the industry, has been woefully inadequate. The current system has no integration of NHS services, as we have heard, and also no consistency on funding decisions and no co-ordinated oversight of research into harms. What is more, there are serious questions to be asked about the independence of the voluntary system from the influence of the gambling industry.

We can see that the scale of the problem is huge, and yet there is so much to uncover. A mandatory levy in statute is an essential step for generating funding towards research, prevention and treatment services. Researching and growing our knowledge base will allow us to better understand the extent of the issue and, importantly, tackle it effectively, driving support and funds towards NHS treatment and support networks. Most importantly, that would be free from the influence of the industry that is perpetuating the harm that we are trying to treat.

The time has come for the onus to be placed on the betting industry to address gambling harms. It must be held to account for the damage it has inflicted through dangerous marketing and customer practices. The asks that myself and my colleagues have outlined today are rooted in a desire to help build a society where the risk of real harm from gambling is no longer accepted. The time for that is now long overdue, and the Government must take action. With the publishing of the White Paper, and everything that comes with it, there is an opportunity to take action. To keep to your time limit, Mr Betts, I will conclude by saying that I look forward to the Minister’s response. I hope he can reassure us that the Government are listening and will take the appropriate action.

[Mr Clive Betts (in the Chair)]

Last but not least, I call Jim Shannon. If the hon. Member can finish before half-past 10, that will allow time for the winding-up speeches.

[Jim Shannon (Strangford) (DUP)]

I will keep to your timeframe, Mr Betts. I congratulate my hon. Friend—she certainly is my hon. Friend—the Member for Swansea East (Carolyn Harris) on securing the debate. There are very few debates that she secures that I am not here to support, but this one is of particular interest to me, and I will explain why. I should also declare an interest as a member of the all-party parliamentary group for gambling related harm.

There have been some incredible speeches from Opposition Members, and also from the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith), who put forward in a very succinct and helpful way what is very much my own line of thought. This is not about being anti-gambling; it is about how we can use the levy in a way that addresses the issue of addiction, while hopefully giving some of the money to the NHS, as the hon. Member for Swansea East said.

It is clear that gambling addiction is a significant public health issue: it ruins families, marriages and communities, and in extreme circumstances it can lead to suicide. The hon. Member for Sheffield Central (Paul Blomfield) referred to one of his constituents who had been affected, and there are families in the Public Gallery today who have also been affected. I am ever mindful of Peter and Sadie Keogh from County Fermanagh—they are not my constituents, but they came to my attention some time ago because of the issue of addiction and gambling. I have examples from my constituency of people who have been addicted to gambling, and although it did not lead to suicide, they found themselves under incredible pressure that affected their families. Gambling can lead to financial pressures in the house, arguments and ultimately the break-up of marriages.

Peter and Sadie Keogh lost their son Lewis. Their story is mirrored by the stories of those who are here today and by the stories of addiction told by others. Lewis found himself gambling and did not realise how deep the problem was getting. His mum and dad were probably not aware of everything that was happening, but they were when Lewis unfortunately took his own life. That came about because his debts had overcome him. His ability to respond and to discuss matters in their totality with his parents and friends led him to think there was only one way out. I am here today for Lewis, Peter and Sadie Keogh from Fermanagh in Northern Ireland, and for all the others in Northern Ireland who have succumbed to suicide because of gambling addiction.

The harms of gambling addiction are an indisputable fact, and yet we have limited protections in place to support the most vulnerable in society. Chronic under-investment in the gambling treatment system has led to a situation where treatment is unregulated and lacks consistency, transparency and accountability. Between only 2% and 3% of people with gambling problems enter the treatment system, and nearly all of them enter through self-referral—we need to look at that. The gambling industry is hugely well resourced, and it could and should be doing so much more to identify and protect vulnerable people.

A 1% smart levy on the industry’s revenues would provide £130 million—an increase of over £100 million on what we currently receive. What the hon. Member for Swansea East and most of us here today are saying is that that is not a big amount for the sector, but it will make a big difference. If the DCMS introduces a smart statutory levy on the gambling industry—that is already within the power of the Secretary of State—it can take control of the funding for research, education and, ultimately, treatment back from the bookies, set up a long-term funding commitment, allow clinicians and academics to commit to projects and programmes properly and safeguard the independence of research and education to ensure that the gambling industry can no longer mark its own homework. If such a levy were based on the “polluter pays” principle, it would not punish the bingo halls and the high street arcades that support local high street communities across the UK, but instead would force gambling operators who are all too often based offshore to pay for the harm that they undoubtedly fuel.

Compared with the other regions of the United Kingdom, the level of participation in gambling in Northern Ireland is higher. In England, the rate is 62%, and in Wales, it is 61.3%, but the rate in Northern Ireland, which is similar to the most recent recorded participation rate in Scotland, is 67.8%. Compared with the other regions of the United Kingdom, the proportion of the population in Northern Ireland found to be problem gamblers is also higher, at 2.3%. In Wales, it is 1.1%, in Scotland, it is 0.7%, and in England, it is 0.5%. We have a serious gambling problem in Northern Ireland, and our numbers outstrip those in the other three countries put together.

I always look forward to seeing the Minister, who is always incredibly helpful. He looks to help and reassure. I ask him what discussions he has had with his counterpart in Northern Ireland about gambling addiction and the fact that the rate in Northern Ireland are higher than in the rest of the United Kingdom put together. What steps can be taken to assist, help or advise the Northern Ireland Assembly Ministers?

The report on participation in gambling identified the four most common types of gambling in Northern Ireland as the national lottery; scratchcards or instant win; betting on an event or sport; and other lotteries, raffles and ballots. Sometimes, when I am in the garages back home getting petrol or diesel, I see people buying scratchcards, and I sometimes feel quite moved. That scratchcard is their hope of getting money to help with whatever it may be—to pay the bills—but that scratchcard is a gambler’s chance. It is very unusual for it to lead to any income.

Some types of gambling cannot be regulated in a meaningful way, but some can, and I believe that the levy is an essential tool in regulation. I encourage the Government and the Minister to see where the problem lies and to tackle it at the root. The purpose of a gambling statutory levy is to generate moneys to help those with addictions and to assist their families, and to help the NHS. It is right that the gambling sector should pay more. In my opinion, and that of many others, the publication of a White Paper cannot come soon enough. I urge the Minister and his colleagues in Government to take the opportunity to deliver meaningful change where the industry quite clearly has not yet done so.

[Mr Clive Betts (in the Chair)]

We move on to the Front Bench spokespeople, who have 10 minutes each. After that, there will be a short time for the mover to wind up at the end. I call Ronnie Cowan for the SNP.

--- Later in debate ---

[Jeff Smith (Manchester, Withington) (Lab)]

It is always a pleasure to see you in the Chair, Mr Betts. I pass on the apologies of the shadow Minister, my hon. Friend the Member for Pontypridd (Alex Davies-Jones), who is in Committee, as indeed is the Under-Secretary of State for Digital, Culture, Media and Sport, the hon. Member for Croydon South (Chris Philp) —although it is always a pleasure to see the Minister across the Chamber.

I congratulate my hon. Friend the Member for Swansea East (Carolyn Harris) on securing this debate and on her, as always, excellent and comprehensive speech. I congratulate all hon. Members who have taken part, including my hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones). My hon. Friend the Member for Sheffield Central (Paul Blomfield) spoke powerfully about his constituent Jack, and importantly identified the shortfall in diagnosis and treatment, and the lack of specialist gambling support across the country. I have had a number of meetings with former gambling addicts, and they have often identified that it is really hard to get treatment where they want, as there is a bit of a postcode lottery. Anybody who suggests that an increase in funding is not necessary for the support and treatment of gambling addicts is completely wrong. We have a decided lack of specialist treatment, and we really need to get extra funding into it. That is the heart of the issue.

The right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) was absolutely correct when he said that the people speaking in this debate are not anti-gambling; we are anti-gambling harm. We need to make that important distinction.

As I said when we most recently debated gambling in this place, reform is long overdue and the Government have been dragging their feet. Many forms of gambling are a pastime that lots of people enjoy. They are a source of employment and economic activity for communities in towns and cities across the country. Nobody sensible wants to send gambling to the underground or the black market, but we have to recognise that it can also be a highly addictive activity that damages families and communities. That is why we need action, not more words, from the Government. Time and time again, as we have heard, we have been promised legislation only for it not to materialise.

As we have heard from a number of hon. Members— I have heard this graphically from the relatives of people who have died by suicide and from former gambling addicts—the business models of some gambling companies, and some gambling products, add to significant harms, leading to high levels of problem gambling, mental health issues and, sadly, suicides. Regulation is long overdue, particularly since the huge growth in online and mobile gambling. Smartphones give opportunities to gamble pretty much anywhere, anytime, and the unregulated online spaces fail to protect users.

As we have heard, the Gambling Act 2005 is the basis for the regulation of gambling in Great Britain, but it has not been updated since it was passed and it is not fit for the digital age. The key Conservative manifesto pledge in 2019 was to review gambling laws in response to mounting concerns about how this £14 billion-a-year industry is regulated. The White Paper was originally due to be published before the end of 2021. Labour has been calling on the Government to bring forward gambling legislation for a long time. In 2019, we also committed to introducing a gambling Act.

The delay in tackling this issue is costing money as well as lives. The Public Health England review found that the annual economic burden of harmful gambling is £1.27 billion. That is £647 million in direct costs to the Government and £619 million of wider societal costs associated with suicides. It is about not just lives but money, and we need to address that issue.

Will the Minister confirm when exactly we will see the White Paper? We definitely need to see it in the coming weeks. I agree with the hon. Member for Inverclyde (Ronnie Cowan) that we need to see it long before the summer so we can start discussing these issues. It needs to build on the consensus across the House that we need to bring this regulation into the digital age.

The all-party parliamentary group for gambling related harm, chaired by my hon. Friend the Member for Swansea East, who has campaigned magnificently on this issue, recommended a mandatory levy on the gambling industry to fund research, protection, treatment and education, and address gambling-related harms, including to consider the links between gambling and suicide. At the moment, as we have heard, gambling firms have no mandatory requirement to fund addiction research and treatment services. Many do so through the voluntary scheme, but it is variable and uncertain. That uncertainty makes it difficult to plan long-term projects.

The five big gambling companies have committed to paying 1% of their gross yields towards safer gambling initiatives by 2023, but the variation between online products and their donations is a real issue. The legal power to impose a levy on the gambling industry has existed since 2005, but it has never been used due to the Government’s insistence that the industry should support harm-reduction work on a voluntary basis. I think that the highest figure was last year, with £35 million coming through voluntary donations. It has been estimated that a statutory levy would increase that to around £140 million, but we must put that in perspective: the gambling industry spends £1.5 billion a year just on advertising. That is the scale of the issue. The Government must take this proposal seriously.

My hon. Friend the Member for Swansea East made the important point that a levy should be smart or differentiated to tackle the most dangerous forms of gambling without harming, for example, bingo halls. I should be grateful if the Minister would outline what consideration the Government have given the proposal. We need clarity about what will be in the White Paper and how a statutory levy might work. We absolutely need to tackle gambling harm across the board, so that the families of those who have been immeasurably harmed by gambling can have confidence that what has happened to their loved ones will not happen to others.

[Mr Clive Betts (in the Chair)]

May I ask the Minister to ensure that there are a couple of minutes left for the mover to reply?