Draft Gambling Act 2005 (Operating Licence Conditions) (Amendment) Regulations 2024 Draft Gambling Levy Regulations 2025 Debate

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Department: Department for Digital, Culture, Media & Sport

Draft Gambling Act 2005 (Operating Licence Conditions) (Amendment) Regulations 2024 Draft Gambling Levy Regulations 2025

Iain Duncan Smith Excerpts
Wednesday 29th January 2025

(3 weeks, 4 days ago)

General Committees
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Iain Duncan Smith Portrait Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
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I will keep my intervention short. First, it is a significant pleasure to serve under your chairmanship, Mr Twigg. As chairman of the all-party parliamentary group on gambling reform, it is a great pleasure to be here when the regulations will hopefully be brought in at last.

I welcome the long-awaited establishment of a maximum staking limit for online slots, a measure for which the all-party parliamentary group has long campaigned. It is long overdue, and, while we welcome its introduction, the one point I would like to make is that £5 is simply too high. We have a problem here, because we have physical shops on the high street where stakes will be limited to £2, yet we have a £5 limit for online. The online side will grow rapidly, and it has the greatest attraction for those who get hooked on gambling. Online slots are available anytime, can be marketed to every current and potential account holder and offer unrestricted access to high-speed and addictive products. That was clear in all the evidence. Although I welcome this move, I make clear that the stake limits will have to be reviewed quickly, because we cannot have two different stake limits that will at the end of the day punish those on the high street while supporting those online. That is the wrong way round.

The facts are clear. Online slots account for more than half of gambling revenues online, and 45% of those who engage with them are classed as either problem gamblers or at risk. A report on harm to national gambling treatment service clients by location shows that 38.1% report harm online. There is a multitude of evidence about the great harms of online slots gambling, and I therefore suggest to the Government that while they are doing the right thing, they should get it perfect, rather than just doing it. The truth is that the stake limit has to be at the same level as the existing £2. What scope will the Minister build into these regulations to adjust the maximum stake, given the risks of the £5 limit? Will she review the limit, given the clear indication that it is too high? That is a cross-party view of the all-party parliamentary group, and not mine alone.

The draft Gambling Levy Regulations are important. That levy was an important feature of the previous Government’s White Paper, and it is a damning indictment of the gambling industry that this levy—

None Portrait The Chair
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Order. You must stick to the first set of regulations. Have you finished your comments on them?

Iain Duncan Smith Portrait Sir Iain Duncan Smith
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Yes, I have.

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Iain Duncan Smith Portrait Sir Iain Duncan Smith
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I want to make a very simple point. I do not agree with the position that my hon. Friend the Member for Old Bexley and Sidcup has taken. We spent a number of years debating this question with our Government, and we eventually came to this conclusion and the proposal went into the White Paper. Yes, of course there are issues, but are they worth our trying to block the idea of the statutory levy? The answer is no. Research will be vital to understand how many people are affected, how they are affected, and the extensions in effect on those that have suffered. I have met an endless number of families who have been ripped apart by early suicides, by problems and by bankruptcies, because, unbeknown to them, somebody in the family was addicted to gambling to the extent that, late at night, they basically trashed their own family.

This is where we intended to go. It was my whole original drive, and it was backed by the evidence-based findings of the then all-party parliamentary group on gambling related harm. I understand many of the points that my hon. Friend made, some of which have been reiterated endlessly by the gambling industry, but may I say one thing about trusting the gambling industry? I would not place much store on that. It had years to get the voluntary levy right. The good ones contributed; the bad ones did not—or when they did, it was peanuts. The statutory levy was required, otherwise the money was not going to many of those community groups and charities—I have met very many of them—who disburse the money and work to get this done.

I would simply say to my hon. Friend that I hope that Her Majesty’s Opposition will think very carefully about today, because it is important to get this legislation through. Yes, it is not without its faults. I recognise that there is an increase in the percentage it will raise that will affect high street betting shops, which are not the wealthy, massive offenders. We know that—that is where the pressure should come. I am in principle supportive of this legislation, because of the evidence we found.

I want to make one final point; I really want to press the Government on this. Will the Government confirm that GambleAware will have no role in influencing the future work, framework or shape of the research undertaken by UKRI under the statutory levy? GambleAware is far too close to the gambling industry. We need to make sure there is independence, based on the evidence we have of the harms, and more evidence that we can gather. I urge the Government to make sure that GambleAware is not party to that, so that this research will therefore be clearly independent.