Gambling Harms

Dan Carden Excerpts

Wednesday 5th February 2025 Westminster Hall

[Dan Carden (Liverpool Walton) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Turner, and to follow two such accomplished speeches. There is real intelligence on both sides of this House in terms of where we need to go now with gambling legislation.

Most Members will know that I have worked over a number of years on the issue of alcohol and drug addiction treatment, and I share similar concerns about addiction in gambling. As you know, Mr Turner, I also have a passion for horseracing, and I will give a bit of context to bring the two together. We can all agree that the incessant advertising of gambling, in particular of online casinos and the most harmful forms of gambling, is destructive. I do not see why we should stand for that any longer.

There is a second levy that is important in this debate. Fixed-odds betting goes back to about the 1960s. Horseracing—which I consider to be a great British sport that I wish to support, and is an industry that employs many people and livelihoods—is reliant on a levy from the bookmakers to the horseracing industry. That levy is applied only to bets that are placed on horseracing.

There is therefore no risk to racing in dealing with the most harmful forms of gambling in this country. In fact, there can be a benefit to the horseracing industry if this House gets the legislation and the regulation right. We can reduce the most harmful forms of gambling and encourage forms such as taking a flutter on a bet or a Yankee on a Saturday—as we have done for many generations in this country.

We can redraw the landscape of betting and gaming in the United Kingdom for the benefit of real-life sports and entertainment, away from the online casinos and the most addictive forms of gambling. Through the levy that my hon. Friend the Member for Halesowen (Alex Ballinger) talked about, I hope that we can also make sure that more money goes into addiction treatment and support for those who are so tragically harmed and who, in some of the worst cases, lose their lives to this pernicious habit.

--- Later in debate ---

[Stephanie Peacock]

I will come on to answer some of those points, but in the interests of time, I will endeavour to get the Minister for Gambling to write to the hon. Member with a full response.

The shadow Minister also asked about operators paying more in the first year. That is simply not correct. The levy is charged at a flat rate based on previous years’ profits. We believe that is the fairest and most sustainable way forward. Operators’ first levy payment will be based on profits reported to the Gambling Commission via regulatory returns. The commission changed the returns process for non-lottery licences last July. As such, operators’ first levy payment is based on three quarters’ worth of data multiplied by 1.33 to get the full year.

On the assessment the Government have made about anyone losing out on treatment in the transition period, we are clear that operators must maintain the level of contributions to the National Gambling Support Network to ensure that it has the funding it needs. We have received reassurances from the industry that that will happen. As I have just said, I or the Minister for Gambling will write to the shadow Minister. In the interests of time, I will move on to make some progress on the question before us.

We know that the vast majority of people who gamble do so safely—indeed, half of adults gamble each month. The shadow Minister and my hon. Friend the Member for Easington (Grahame Morris) spoke about the contribution the industry makes economically and in terms of jobs, and I will not repeat those comments. However, 300,000 people in Great Britain are estimated to be experiencing problem gambling. It is clear from today’s debate that many of us share the commitment to do more to protect people who are suffering that harm, especially given the significant changes that we have seen in the sector in recent years.

In that context, the Government are committed to taking forward White Paper measures such as new protections on marketing and bonuses, financial risk checks to prevent unaffordable gambling, and allowing consumers to seek redress from gambling operators via an ombudsman, which has been discussed today. We will continue to work with the industry, the third sector and the Gambling Commission to ensure that the reforms are proportionate, targeted and effective.

[Dan Carden]

Reflecting some of the points made early on in the debate, will the Department look at lotteries, pools and sports betting differently from addictive online forms of gambling, which we know are some of the most harmful? There is an opportunity to shape how gambling goes forward in this country.

[Stephanie Peacock]

I will be happy to discuss that with my hon. Friend. He knows that the levy is proportionate to the type of product, so it is different for different products, but I or the Minister for Gambling will be happy to discuss it with him.

The work on reform has already begun, with regulations on stake limits for online slots and a statutory gambling levy, which was debated last week and has been discussed today. I am pleased to report that the House approved both those statutory instruments, and they will be considered in the other place next week.

I will talk briefly about the first of those statutory instruments, on stake limits for online slots, which provides an important and proportionate intervention aimed at better protecting those who are most at risk of gambling-related harm. Online slots are the highest-risk and fastest-growing gambling product, but there are currently no statutory stake limits for online slot games, unlike their land-based counterparts. As the popularity of slots grows, so does the risk for vulnerable people. The limit builds on previous protections introduced by the Gambling Commission. The new regulation introduces statutory maximum stake limits in online slots games of £5 per game cycle for adults aged 25 and over and £2 per game cycle for young adults aged 18 to 24. Those limits will bolster existing safer game design requirements to ensure that online slots games are safer to play than ever.

I have heard what some Members have said about £5 being too high. The average stake in online slots is 60p, and the evidence shows that people staking high amounts are more likely to be experiencing gambling harm. The £5 stake limit is a targeted intervention to protect those who are most at risk of gambling harm and unaffordable losses.

Horseracing

Dan Carden Excerpts

Thursday 24th October 2024 Westminster Hall

[Nick Timothy]

I am sure all hon. Members would look forward to a trip to Ludlow to experience the racing. If I am honest—I say this as a Conservative—this issue has dragged on for a while. I will turn to some questions for the Minister shortly, but time is of the essence.

As so often with Britain, part of the draw, especially for international investors, traders and spectators, is our history and tradition. Racing in this country dates back more than three centuries, and thoroughbred racing was first created here. The association with royalty, which continues with His Majesty the King, only adds to the prestige—I am sitting next to my hon. Friend the Member for Windsor (Jack Rankin), the most ardent monarchist in the House of Commons.

That success story, however, is strangely neglected. To those who do not know the industry, it can sometimes appear to be something of a caricature, with horses selling for millions of pounds, breeders paying hundreds of thousands for a particular stallion to cover a mare, and aristocrats and royals being prominent in their patronage. But the reality of racing, unfortunately, is that its future is far more precarious.

Many breeders and trainers operate on tight margins and, as many hon. Members present will affirm, any conversation with them turns quickly to prize money. A horse that wins a top-tier British race increases its future breeding value, but the immediate return is limited compared with in Australia, Ireland and France, where racing benefits from Government support, or in Japan and the United States, where there is simply more money around.

The prize fund for the Dubai Turf, for example, is £4.5 million, and for the All-Star Mile in Australia it is £2.7 million. The Queen Anne Stakes in Ascot, which is a fair equivalent, offers £600,000, and the same is true for the less famous races. At an average of £16,000 to be divided by all placed horses, prize money across the board is much lower here than in competitor markets. Lower down the pyramid, most races pay less than £5,000 to the winner. Owner expenditure far outstrips the total prize money up for grabs in British racing. That is down to how the industry is funded.

In Japan and Hong Kong, where betting is generally banned, there are exceptions for horseracing and some other sports, because they are seen as being run efficiently and by Government Departments. That means proportionately more bets are placed on horseracing than elsewhere, and in both places the industry controls the gambling. In France, prize money is underwritten by the Pari Mutuel Urbain, which enjoys a monopoly on betting. In Australia, where prize money has almost doubled in a decade, it is funded mostly through a betting tax. In Ireland, more than two thirds of prize money comes directly from the Irish Government.

Our system is different. Here the funds come from media rights, executive contributions from racecourses, owners’ entry fees, and the betting levy—a 10% tax on bookmakers’ profits from bets placed on races staged in Britain. Around a third of prize money comes from the levy, but income is falling. Over the past two years, the industry estimates that betting turnover on British racing has fallen by over £1.5 billion and could be as low as £7 billion this year. The Horserace Betting Levy Board says

“falling turnover is unlikely to prove a positive for the sport’s long-term health”,

and I agree.

Nobody expects us to adopt a Japanese or French model, but I ask the Minister how things might be changed so that we can put racing on a sustainable footing and make sure that we retain our position as the best place in the world to breed, train and race horses. First, does the Minister agree with all hon. Members present—this is probably the easiest of my questions— that the British horseracing industry is an undoubted international success story, a source of British soft power around the world, and home to many vital community assets in regional towns here, and that we must therefore do everything in our power to make sure it continues to prosper?

Secondly, will the Minister confirm today that the Government will not go back to square one and will instead pick up where their predecessors left off? In May, the British Horseracing Authority agreed with the Department for Culture, Media and Sport that the levy should be increased to 11.5% to create a growth fund to market and promote British racing at home and abroad, and to hold an independent review of the racing funding model.

[Dan Carden (Liverpool Walton) (Lab)]

I am grateful to the hon. Member for securing this debate—he and I are co-chairs of the all-party parliamentary group on racing and bloodstock. It is important to get more money into the racing industry because there are so many people employed throughout the sport for whom racing is their livelihood, but their commitment and the lifestyle that they have to lead to do their work means that we must make sure they are in decent well-paid jobs as well. We cannot have racing squeezed, as it could be in years ahead.

[Nick Timothy]

I completely agree with the hon. Gentleman. The racing industry is connected to many associated industries and many different kinds of jobs. As I said, when people see the large sums that are invested in bloodstock and so on, they do not always see that the industry rests on thousands of people, many of whom are on low incomes.

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[Dan Carden (Liverpool Walton) (Lab)]

Thank you, Sir Edward, for your chairmanship of today’s debate, and it is a pleasure to be able to contribute. I refer Members to my declaration in the Register of Members’ Financial Interests and congratulate the hon. Member for West Suffolk (Nick Timothy) on securing the debate. His extraordinary constituency has Newmarket in it, and I have not been there since I was about 10 or 11, when my godfather took me to see the sales taking place—I hope I can go and relive that experience at some point soon.

I have loved horseracing since I was a child. My dad, who was a dock worker, would take me to local racecourses. I did not grow up in the countryside, but in the city of Liverpool, and he would take me to Haydock racecourse and Aintree racecourse. The first grand national I attended was won by Red Marauder, and only four horses out of 40 finished the race—Red Marauder, Smarty, Blowing Wind and Papillon.

[Sir Edward Leigh (in the Chair)]

That is very impressive!

[Dan Carden]

The racecourse was an absolute bog filled with water, and two of those horses had to be remounted to get to the finish. The event hooked me on horseracing because it was so extraordinary.

The hon. Member for West Suffolk and I now chair the all-party parliamentary group on racing and bloodstock, and our first meeting of this Parliament was attended by well over 20 colleagues. That—along with the strong attendance at this debate on a Thursday—just shows how highly the sport is considered.

I am incredibly proud to represent the Walton constituency, which now has Aintree racecourse within it. Aintree is home to one of the greatest races in the world, which is watched by more than 600 million people globally: the grand national. The economic contribution of the grand national—the three-day race meeting—is well over £60 million for. Aintree racecourse is also a world-class sporting facility, as well as being part of the local community, maintaining strong relationships, as some hon. Members will know, with Alder Hey children’s hospital, Park Palace Ponies and some of our schools and educational establishments. There is so much more potential for racecourses in our communities to have a positive and meaningful social impact, especially in urban areas. There is the potential for young people to benefit from alternatives to the classroom when it comes to skills and apprenticeships, and there are alternative fulfilling careers. Racing can play a role in helping the Government to deliver their national mission for growth.

Whatever the challenges British horseracing faces, it will always benefit from its prestige, including its centuries-old thoroughbred history, from Eclipse to Frankel, and Ascot racecourse, which was founded in 1711. Horseracing bridges the class divide. All of us want British horseracing to thrive into the future. For those who work in the industry, it is a labour of love and dedication, and a total life commitment.

The hon. Member for West Suffolk did an excellent job of putting on record the low prize money offered in Britain, compared to countries with different funding models, so I do not need to repeat that. However, given the reported decline in betting turnover, the current system —the reliance on media rights, racecourse contributions, owners and the levy—leaves the industry looking precarious. That is a real concern for all those who rely on it, and like all those in leadership roles in the industry, we in this place also have concerns. My message to the Minister and her colleagues is that they, and we as a Labour Government, have a responsibility to be good custodians of the industry for the future.

British racing is British soft power; it creates bonds between states—not just our neighbours in France and Ireland, but Japan, Australia, the US and the Gulf states. It is one of the finest cultural and economic assets this country possesses, and it rightly has a reputation as a global leader. Will the Minister commit to being proactive in backing the industry and all those who work in it? Will she carry forward the current levy negotiations with at least the suggested increase and with some urgency? While negotiations between the Betting and Gaming Council and the BHA are resuming, we must remember that the Government set the red lines and make the decisions. Finally, could we have that independent review into the future of racing—into the funding model for racing—to ensure that, in the years ahead, we can arrive at a sustainable settlement to save and promote racing?