Ian Lavery
Main Page: Ian Lavery (Labour - Blyth and Ashington)Fixed-odds Betting Terminals
Ian Lavery Excerpts
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
I am pleased to have secured this debate. I know from the number of letters, e-mails and, indeed, tweets I have received in the past few days that there is concern about the prevalence of fixed-odds betting terminals—or FOBTs, as they are commonly known—primarily in high street betting shops. A number of hon. and right hon. Members, some of whom are present, have also expressed concerns. Given that we have more time available than anticipated they will be able to make contributions, or if they want to intervene I will seek to accommodate them.
I will begin by clarifying my own position on gambling. Participants in debates such as this are often portrayed as being either pro or anti-gambling. I am not anti-gambling, nor do I seek to persuade the Minister of State to prevent people from being able to gamble in betting shops if they so choose. There are 32 such shops in my constituency—they exist across the whole country—and I received a briefing earlier today that informed me that they employ 152 people. Many people gamble for entertainment and in their own time—some occasionally, some regularly—on sport, in the casino, at bingo and in other forms, and they do so without any problems. Indeed, most years I place a bet on Fulham winning the FA cup. That one has not come in yet, and my annual visit to the bookmakers seems to be as much for their amusement as for mine. [Interruption.] My hon. Friend the Member for Ealing North (Stephen Pound), a fellow Fulham supporter, reminds me that in 1975 we came quite close. I was about eight months old at the time, so I do not really remember it, but I am sure that he had a bet that day.
The serious point is that my inclination and that of many Members of this House is to be very cautious about regulating how people choose legally to spend their money. That should be a matter for them and in most cases it is. There is also a danger in seeking to extrapolate policy from the worst cases of problem gambling. That does not mean, however, that the Government should simply ignore the issues and concerns that arise from the fact that between 2007 and last year, the number of FOBTs on high streets throughout Britain near enough doubled from 16,380 to some 32,000.
My interest in this issue began late in 2011, when I was approached by a constituent who in one month had gambled more than £25,000 on a single machine in a betting shop in my constituency. He approached me not because he had accepted that he had a gambling problem caused by the use of the roulette game that he played, but because he was convinced that that game was rigged. At that point, he had not thought that he had a problem. I am pleased to say that he has now accepted that he has a problem and is involved in a number of groups to deal with it. A feeling that the game is rigged is often the first indication that somebody has a problem that is getting out of control.
When my constituent approached me, I was astonished that somebody who was not a bored millionaire professional footballer betting on the horses or a property tycoon at the casino could lose that amount of money in such a short space of time at the local betting shop during the day on a single machine. What I had not appreciated is that we are not talking about machines with a £1 or £2 spin like the fruit machines in a pub, on a ferry or in a chip shop. B2 machines, as they are known, are casino-content terminals with high stakes, fast play and randomly generated results. The maximum stake is £100 per spin. It is possible, therefore, to stake £300 in a minute. In the extreme, that means that it is possible to stake up to £18,000 in an hour.
Ian Lavery (Wansbeck) (Lab)
The anti-gambling lobby says consistently that gamblers can lose up to £18,000 per hour on these machines. Will my hon. Friend comment on the likelihood of that?
Tom Greatrex
My hon. Friend anticipates my next point. Even if somebody played at the maximum speed for an hour, it would be highly unlikely that they would lose every single time. I suspect that the odds of losing £18,000 in an hour are pretty long. However, this is not just an idle way to use up some spare change, with the anticipation of winning a few pounds. Many people who use these machines lose a significant amount of money in a relatively short period.
I am sure that many Members have received cards via betting shops from the “Back your local bookie” campaign, which has made points about the economic value that bookmakers contribute. Betting shops often invite Members to go along and have a go on one of these machines. They will put it in demo mode and one can press a button and see that it is all very straightforward and fine. However, I have chosen to be an unannounced visitor to betting shops in London and in my constituency. What I have seen is quite alarming. People sit on the machines for a prolonged period, playing continuously and obviously staking significant amounts of money. Other than on weekends such as the grand national weekend or the Scottish grand national weekend, there is next to nobody betting over the counter. Many shops are staffed by a single individual. Other than overseeing the premises, it appears that there is relatively little for that individual to do. The machines do the work, take a lot of the money and, as the published figures demonstrate, deliver half the profit of high street betting shop chains.
I also recently spent a morning with the Hamilton Gamblers Anonymous group, who by definition are people with a gambling problem. I would not seek to suggest that everybody who gambles from time to time, or even a significant proportion of them, develop a problem, but from meeting that group, it struck me that there was a clear divide between the younger and older members. Many of the older members had developed a problem associated with gambling on horses or sometimes dog racing, or in casinos or on cards. All the younger members of the group had bet significant amounts of money on betting shop machines. Either that had been their way into gambling, from which they had developed a problem, or they had moved on to it from other forms of gambling in betting shops. I am sure that we have all heard stories about the impact on homes, families and children, with relationships breaking down because of a compulsive habit that people can indulge every day from 8 o’clock in the morning in the betting shop around the corner.
Ian Lavery
Is there not a bigger problem for individuals who have problems with gambling, in that they can sit at home gambling online 24 hours a day, often with bigger stakes than £100 every time? I wonder why the anti-gambling lobby and a lot of people do not focus on that potential problem rather than on what is happening in betting shops.
Tom Greatrex
My hon. Friend makes an important point, and I would not describe myself as anti-gambling. Some industry representatives seem to take quite an arrogant and dismissive attitude to concerns that are expressed, but I would not call myself anti-gambling. He is right that people can gamble significant amounts on the internet in their own homes, but we cannot take comfort from the fact that significant amounts can be gambled on machines on the high street in a short period.
Hugh Robertson
I thank my hon. Friend for that contribution. I will have to check the legalities and get back to him. The consultation period was open for a specific time, and if we were to reopen it to the BBC, we would have to reopen it to everyone else to be fair. I am slightly inclined to ask why, if the BBC was going to carry out a major study, it did not do so in time to submit it to the consultation, especially when it had three months in which to do it.
We have heard many distressing tales of where people have run into problems using the type of machines that the hon. Member for Rutherglen and Hamilton West has spoken about this evening. Each one of those stories is, of course, a personal tragedy not just for the individual, but for their friends and colleagues—and indeed, for the wider society. As was pointed out earlier, however, we also have to balance such matters with a recognition that for the majority of people, gambling does not develop into a problem. As I think the hon. Gentleman was fair enough to say, the gambling industry is a legitimate part of the leisure industry that creates jobs and harnesses investment.
According to the Gambling Commission’s industry statistics for the period April 2011 to March 2012, the gambling industry employed almost 110,000 people—a considerable number—with the betting sector making up the largest component, employing nearly 55,000 people in full or part-time posts. That makes the gambling industry a significant contributor to the UK economy. The Office for National Statistics estimated that in 2009 it was directly worth £4.9 billion in gross value added terms. What I think I am saying to the hon. Gentleman is not one thing or the other, but that there is a balance to be struck here. To be fair, he recognises that.
Let me say a few words about betting shops. The hon. Gentleman mentioned what has been a recurrent theme during recent times, about which concerns have been raised by a large number of stakeholders: the clustering of betting shops within certain local areas. The key concern—it has been raised tonight—often relates to the B2 machines and their impact on local communities in respect of problem gambling.
The overall number of betting shops has remained reasonably stable in recent years. In 2009, there were 8,862 and by September 2012 there were 9,049—not a huge difference. Those figures are well down on the peak of 16,000 during the 1960s. The hon. Gentleman is absolutely right, however, that more betting shops are relocating to the high street, which makes them more visible.
I am not entirely shrugging my shoulders when I say that planning policy is, of course, an issue for the Department for Communities and Local Government. It is relevant to the debate to note that local authorities have a range of enforcement powers—I appreciate that the hon. Gentleman would like them to have more—that can be used to manage the overall retail diversity and the viability of town centres. Tools such as article 4 directions allow local authorities to restrict nationally permitted development rights if they are not suitable for their area.
Ian Lavery
Anybody can see the clustering of betting shops on the high street. What is the Minister’s view of why that is happening, as he is right that there are fewer betting shops now than 20 years ago?
Hugh Robertson
That is a very good question. I have to tread a little carefully because of the consultation. As a Minister who has already been judicially reviewed once, over a football stadium, I am not in hurry to go through that joyous process again, to be honest, so I will tread reasonably carefully here. Many of the factors mentioned tonight may be behind this particular development. It is pretty clear where betting shops are making their money at the moment. As my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) mentioned, the pattern of betting has changed quite a lot over recent years. Betting shops are sometimes able to pay rents that other retail outlets cannot afford, there have been changes in shopping patterns and there is also the changing nature of the high street. All those things are factors, but I will not go a great deal further than that until we have had the chance to analyse the responses to the consultation.
Hugh Robertson
It is important to note that two separate reviews are taking place. The triennial review of stakes and prizes closed on 9 April, and produced 9,000 responses which we must work through. The wider issues will be addressed by the review that will take place next year, and I hope that we will be able to reach some worthwhile conclusions on that basis.
The Gambling Commission’s statistics show that between March 2011 and April 2012, an average of just over 35,500 machines were capable of offering B2 category games in betting shops in Great Britain. The number has remained relatively stable since 2009, but, as was pointed out by the hon. Member for Rutherglen and Hamilton West, that stability has occurred at a time when machine numbers elsewhere have declined. For example, according to Gambling Commission figures, the overall number of gaming machines fell by 10% between 2011 and 2012, and the number of B2 machines increased by 1% during the same period. That would appear to show that B2 machines are popular consumer products, which may give rise to some of the problems identified by the hon. Gentleman. They are, of course, also crucial to the profitability of many betting shops.
I absolutely agree with the hon. Gentleman that, in the light of concerns raised by him and others, it is appropriate for the Government to look into the issue. I assure him that I am well aware of the concerns that he and many other Members have expressed about B2 machines in particular. In dealing with the problem, for reasons that I have already given, I must proceed on the basis of evidence. I hope that the combination of the two reviews that I have mentioned will give us the evidential base that we need in order to work out exactly what is happening and what needs to be done as a consequence. We want to balance the harmful effects that he and many others have described with the contribution that gambling properly makes to employment and the local economy in many areas, which has been mentioned by Members on both sides of the House.
I congratulate the hon. Gentleman both on securing the debate and on the way in which he has prosecuted his case. The evidence that he has presented illustrates the problem, and as he said, it is up to the Government to determine how best to tackle it. I can reassure him that the Government are listening—I am absolutely listening—and that we will take action if it is necessary. However, we must act on the basis of the evidence that is available to us.
Ian Lavery
I thank the Minister for giving way again. There is evidence that it is possible to spend £18,000 in an hour on FOBT machines. I agree with the hon. Member for Chatham and Aylesford (Tracey Crouch) that the people whom we should be looking after are the most vulnerable in society. Like every other Member who is present tonight, I recognise that that is the case and that there is a problem with these machines. We need a fair and balanced review. We need people to be honest about this. People cannot lose £18,000 in an hour on one of those machines. They can go to Cheltenham and spend £100,000 in one minute on one bet; they can put £250,000 on a horse in one minute with one bet. We would not multiply that by 60 and say that is how much money people can spend at Cheltenham, and then look to prevent them from doing so. That is a ludicrous argument.
Hugh Robertson
I understand much of what the hon. Gentleman is saying. The challenge for us as a Government and me as a Minister is to work out a way to deal with the problem that has rightly been identified—the fact that some people get addicted through this sort of gambling—but to do so, if we can, in a way that does not discriminate against the many people who use those machines perfectly safely and perfectly reasonably, and not to overdo it in such a way as to harm the local economy and the employment prospects of many of the hon. Gentleman’s constituents. It is a question of getting that balance right.