Fixed Odds Betting Terminals
Debate between Gerry Sutcliffe and Clive Efford(10 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Clive Efford
If my hon. Friend does not mind, I will draw my remarks to a conclusion, because many Members wish to speak. [Interruption.] I know that what I have to say is upsetting for Government Members, but I am afraid that they will have to hear it all.
The Minister will no doubt say in her response that that is all Labour’s fault. In fact, she has already said just that:
“Any concerns about fixed odds betting machines should be laid firmly at Labour’s door. In 2000, these machines did not exist—by the time of the last general election there were over 30,000.”
FOBTs appeared in betting shops in 2001. In 2005 we limited them to four per shop. The Secretary of State at the time, my right hon. Friend the Member for Dulwich and West Norwood (Dame Tessa Jowell), set out on Second Reading of the Gambling Act 2005 that the impact of the machines would be reviewed, and my hon. Friend the Member for Bradford South (Mr Sutcliffe) made it clear in 2009 that he would do just that. It is no good going back to 2005, because the world has moved on. Online gambling has grown from nothing into a £2 billion-a-year industry. The Government rejected our proposals to regulate that, so we will take no lessons from them.
Mr Gerry Sutcliffe (Bradford South) (Lab)
I did call for FOBTs to be looked at again in 2009, but I also called for the industry to provide £5 million for the Responsible Gambling Trust, which looks at problem gambling. I hope that my hon. Friend admires the work being done by the trust, a charity that has five independent directors and five from the industry.
Clive Efford
Absolutely. There are eminent people in the Responsible Gambling Trust and I endorse what my hon. Friend says, but I do have something to say about the research.
The concerns about FOBTs and the impact that betting shops have on our communities are not just about gambling. We will wait for proper research, but the Minister needs to understand that saying that we will wait for the research and then doing nothing to gather the information that we need to make informed decisions is just not good enough. After all, this Government scrapped the gambling prevalence survey. Let me quote again from her press release:
“This Government is undertaking the biggest ever study into the effect of these machines and have made clear that we will not hesitate to take action if the evidence points in that direction. To act without evidence is inappropriate and extraordinarily cynical, even by Labour’s standards.”
The Government are deluding themselves if they think that all the answers will come from the current study. In December, NatCen published a scoping report that states:
“Across the category B estate in Great Britain, there is a great deal of inconsistency in the level and type of data collected.”
That will seriously undermine the ability of the Responsible Gambling Trust to give us the information we need to make informed decisions when the research is completed next autumn. As the Minister well knows, the report will come out six months away from a general election, yet it will be inconclusive because the data are not robust enough to allow us to make informed decisions on FOBTs.
Gambling (Licensing and Advertising) Bill
Debate between Gerry Sutcliffe and Clive Efford(10 years, 12 months ago)
Commons ChamberRead Full debate Read Hansard Text
Clive Efford
Notwithstanding the views of the hon. Member for Shipley (Philip Davies), the new clauses and amendments have allowed us to have a wide-ranging debate on gambling, and to explore concerns about this area of regulation. That is only fit and proper. The hon. Gentleman’s amendment 1 is a sensible proposition; I have no objection to his proposal for a report that would give us an opportunity to keep an eye on what was going on. We often pass legislation that simply drifts off into the ether and seldom comes back to us, and we rarely have the chance to see how our work is functioning out there. I therefore welcome his sensible suggestion.
Sadly, I cannot say the same about new clause 1. I will listen carefully to what the Minister says about it, and I entirely respect the views of the Select Committee. I understand its point about the anomaly of someone being able to gamble on a hand-held device outside a casino but unable to do so perhaps only a few paces away inside the building. I have looked at some of the websites and seen the sums of prize money increasing at an alarming rate. Sometimes, total prizes of £8 million are advertised. The proposed change for casinos would therefore represent a very big step. If there is a case for such a change, we should consider it in more detail.
Mr Sutcliffe
Has my hon. Friend had a chance to read the briefing from the National Casino Industry Forum? It deals with the way in which casinos would implement and monitor the proposed change, if new clause 1 were to be accepted. It has been stated that our casino industry is the most regulated of the lot, and I would say it is also the safest of the lot. I understand my hon. Friend’s fears about new clause 1, but because of the way in which the industry is regulated and the way in which it protects people with gambling problems, I do not share his concerns.
Clive Efford
I have seen that document. I agree with my hon. Friend: the UK gambling industry is highly regulated and highly regarded. I have a great deal of respect for the way in which it conducts its affairs, and I would not suggest for a minute that it would not deal with this new area of the market in a responsible way, were the new clause to be accepted. The proposal does, however, represent a major step forward, because unlimited prizes would be offered on machines—albeit remote gambling machines—inside casinos. We have regulated on that cautiously in the past. If we are to take that step, it would need consideration in separate legislation or a change in the licensing rules, whichever is required. Having looked at these websites, I think that we need to consider the matter further and that it would not be appropriate to take this step in this Bill.
Clive Efford
It would have to be policed, would it not? Like anything else that is happening on the internet, it would have to be policed. The ultimate argument the hon. Gentleman is making is: what is the point in regulating at all? I think we are getting to the root of his position on all these issues.
On research and treatment, the figure of 0.9% has been used a lot. The 2010 gambling prevalence survey identified that for problem gambling in respect of online slots the figure rises to 9%—we are dealing with online gambling here, so we are talking about almost one in 10 and something that is very serious. The overall figure of 0.9% equates to 450,000 people and we should take note of that, because it equates to 700 people per constituency. It is not the insignificant number it may seem when we say 0.9%—we see that when we talk in terms of 700 people per constituency.
Mr Sutcliffe
I agree with the point my hon. Friend is making, and nobody would want to underestimate the issues relating to problem gambling. The industry has a voluntary levy and it raises more than £5 million. Is it not the case that the health service provides no budget at all to deal with problem gambling, whereas it does make provision to deal with problem drinkers and those dealing with other addictions?
Clive Efford
My hon. Friend is right about that. Of course, a significant duty is levied on alcohol and tobacco, which does contribute towards providing public services, for just the reason he outlines. He rightly says that just about £5.7 million is spent on treatment and research, but the overall value of the gambling industry is about £6 billion. The online gambling industry is worth about £2 billion, so it is not unreasonable to expect that more could be contributed towards the treatment of problem gambling in the future.
I am getting a little bogged down, so I will try to move quickly through my amendments. On self-exclusion, the Minister failed to convince us in Committee that she was going to be robust enough in ensuring that we will deliver a one-stop shop—a single exclusion system right across the gambling industry regulated by the Gambling Commission. We reached a point where I kept asking the same question and I got several evasive answers, so I put my simple question to her again: will she require the Gambling Commission to introduce a single, one-stop shop self-exclusion system across the gambling industry? That is what we are pushing her to do.
When we talk about dormant accounts, we are also talking about bets that are void because the horse did not run, about unclaimed winnings and about the accounts of people who have left money sitting in them for more than a year. That money should be put to use for good causes, such as treatment. I know that an element of it is used in that way, but we do not know how much. [Interruption.] If the hon. Member for Shipley, who is trying to intervene from a sedentary position, were to look at the report written by the right hon. Member for Bath (Mr Foster), he would see how difficult it is to identify how much money there is in those accounts. This is an opportunity for us to deal with that.
We are recommending financial blocking because it should be part of an overall package of measures that the Gambling Commission needs to have at its disposal. Much has been made of the Ofcom report, which concluded that financial blocking, as part of an overall basket of measures, could be an effective means of intervention, and we would certainly recommend that it should be so. Other countries use financial blocking and, taking on board the comments of the hon. Member for Bromley and Chislehurst (Robert Neill), we ask that none of our standards fall below those of other white list countries.
Finally, the horserace betting levy is an extremely important element that we have debated during the passage of the Bill. The horserace betting industry suggests that racing is missing out on £20 million a year that could be made if online remote betting companies were contributing to the betting levy. New clause 10 redefines the definition of a bookmaker in the Betting, Gaming and Lotteries Act 1963 to bring those remote gambling companies into line with the onshore companies that currently pay the levy.
Rather than saying to the Minister here and now that we can pass a system under this Bill that would require everyone to pay the betting levy long into the future, we are suggesting in new clause 11 that there is all-party agreement on the betting levy and that we all accept the principle of it. In fact, several of her hon. Friends have attempted to take a private Member’s Bill through on this specific issue. As we have said before, this is a rare opportunity to legislate in this area, and another such opportunity may be many moons away. In the meantime, the horse racing industry is missing out on vital income. The Minister has an opportunity in the legislation to take reserve powers away, to consult on what would be a long-term acceptable method of raising the horserace betting levy into the future and to come back to the House with her conclusions. It would be the waste of an opportunity not to do that at this time. If she is not minded to set such a timetable for the betting levy, we will put this new clause to the vote.
I hear what the hon. Member for Strangford (Jim Shannon) said about his amendment on self-exclusion and I know that he intends to put it to the vote. If he does, I will urge my hon. Friends to support his amendment as well.
Gambling (Licensing and Advertising) Bill
Debate between Gerry Sutcliffe and Clive Efford
Clive Efford
Let me explain to Government Members that the Gambling Act 2005 was a major piece of legislation that has largely stood the test of time. When the legislation was put in place, the then Government said that the issues in the Bill would be kept under review. A number of areas have subsequently come to light, such as online gambling, which has grown exponentially over the last few years, that present some challenges to Government, in respect of which regulation might be necessary.
Mr Sutcliffe
The 2005 Act was the first parliamentary legislation on gambling since the 1960s. Betting changed dramatically between that period and the Budd report of 2000. This Bill represents the first time the present Government have allowed us to discuss gambling as an issue, and it may be the last time before the next election that we have an opportunity to look at the many issues affecting the gambling industry.
Clive Efford
I am grateful for the benefit of my hon. Friend’s knowledge of this issue. As he says, the Bill has been a long time coming. The Department has few opportunities to find time on the legislative calendar, and we should not waste this opportunity to explore all the aspects of online gambling that may need to be addressed.
Gambling is enjoyed by more than 56% of the population, and the figure rises to more than 70% if the purchase of lottery tickets is included. Obviously we welcome the move to create a level playing field between operators who have remained onshore and those who have moved offshore, have based themselves offshore, or have recently entered the market and wish to trade with United Kingdom customers.
However, when we consider legislation on matters of this kind, we tread a difficult path between our wish to promote an industry from which people gain a great deal of pleasure and our responsibility to protect the vulnerable. Online gambling is of particular concern because of its very nature. It is possible for vulnerable adults to indulge their addiction without leaving their homes, and hence to suffer alone while running up debts that they cannot hope to pay. It is our duty as legislators to create a safe and well-regulated environment in which people can enjoy the pleasure that they experience from gambling.
The online industry has grown to be worth more than £2 billion a year in a relatively short time, and with that has come a relative increase in the capacity of online gamblers with an addiction to lose money before anyone becomes aware of their problem. Unlike codes of conduct in other jurisdictions, the Bill contains no requirement for licensed operators to monitor the behaviour of their customers and intervene if they think there is a problem.