Gambling Levy: Online Gambling and Greyhound Racing

Jim Shannon Excerpts

Tuesday 25th June 2019 Westminster Hall

[Neil Parish (Tiverton and Honiton) (Con)]

I beg to move,

That this House has considered the gambling levy from online gambling and racing greyhounds.

It is a pleasure to serve under your chairmanship, Mr Paisley, and to lead this debate. In 2016, as Chair of the Environment, Food and Rural Affairs Committee, I led an inquiry into greyhound welfare. At the time, we found that there was a distinct lack of data, the regulation was not strong enough, the inspection regimes were insufficient, and there was poor welfare in parts of the greyhound racing industry. We recommended improvements in each of those areas, but funding continues to hold the key to lasting improvements.

I compliment the industry on going forward in many ways. Today’s debate is not about finding fault with the industry; it is about concentrating on the betting industry and the £2,500 million a year that is bet on greyhound racing, and ensuring that enough of that gets to animal welfare charities and the industry in order to make the life of retired greyhounds so much better.

[Jim Shannon (Strangford) (DUP)]

My grandfather kept greyhounds, so there is a particular interest in them in my family. I agree that these dogs are not simply assets; they are living and breathing, and deserve a minimum of care. A small statutory levy may well bring about that standard of care. Does the hon. Gentleman agree that a 1% levy will not break the bank for the bookies, but will help a poor animal to avoid a broken leg from inadequate nutrition and the strenuous nature of the races it is involved in?

[Neil Parish]

My hon. Friend—I believe him to be my hon. Friend—raises a very good point. Not only would 1% not break the bank for the betting industry, but without greyhound racing the gambling industry would lose £2,500 million a year. I will be quite blunt: I think it is criminal that the industry does not pay 1% or more—1.5% or even 2% if necessary. There is no point in imposing a levy for the sheer sake of it, but we have to remember that back in 2008-09 we were on some £14 million. Since then, the amount has probably halved. We are building it back up to £10 million now, but I would like to see around £20 million going towards rehoming greyhounds.

The public demand good welfare—it is also in the interests of the industry—and for the betting industry to deliver that money. Otherwise, there will be huge pressure not to have greyhound racing at all. That is the point I stress. The amount of welfare funding at the moment is a voluntary 0.6%. I will talk about the good companies that come up with that. Previously, too few betting companies have coughed up the cash, and there are still a few more to go—especially online betting companies based overseas.

I congratulate the Minister, and her predecessor, my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch), on getting the bookies around the table, and on getting them to contribute to the British Greyhound Racing Fund, which was set up to protect greyhound welfare. I also congratulate the betting companies themselves—Betfair, Betfred, Sky Bet and William Hill—that have committed to meet the 0.6% target in January in this year, raising a projected £3 million a year. That will take the total amount raised up from £7 million to £10 million.

However, too many companies still do not contribute. Many independent bookmakers, and a growing overseas betting presence, do not pay their fair share. Not only is it wrong from the point of view of the greyhounds’ welfare, but it is wrong for the rest of the betting industry, because if some companies are making that donation so should they all. Bookmakers profiting from greyhound racing have a responsibility to support it, whether they trade on the high street or online. Of course, high street bookmakers have contributed and still do.

When we consider that £2,500 million is staked annually on live greyhound racing in the UK, the welfare conditions of some of those animals remain shocking. They are improving, but with more money they could be much better. Greyhounds bred for racing are animals, not assets. They are gentle, athletic breeds. They feel pain, whether due to damaged limbs or dental problems, and they need love like any other dog. We must ensure that all kennels are up to scratch.

I thank the Greyhound Board of Great Britain for all the work that it does inspecting and helping to raise standards, and I thank the Kennel Club, the Greyhound Trust and other welfare charities for the great work that they do in rehoming greyhounds. An increase in cash for the British Greyhound Racing Fund would make a great difference to greyhound welfare. Even the commitment made in January for the betting companies to reach 0.6% merely reverses a decade-long trend of drastically declining income from the voluntary levy paid by bookmakers.

Income for the British Greyhound Racing Fund has fallen by half in the last 10 years, from £14 million in 2008-09 to just £7 million last year. While online betting continues to thrive, retail betting is suffering. Some 60% of BGRF funding currently comes from retail betting, but the introduction of the £2 maximum stake for fixed odds betting terminals which, by the way, I am very much in favour of, will result in a decline in the amount of money received. That is why we need to increase the percentage of the levy.

A statutory levy that targets greyhound betting equally, levied on all bets placed on UK greyhound racing, will be fair on betting companies and on greyhounds. A strong greyhound welfare system requires strong long-term financing. Take horse-racing as an example. The horse-racing betting levy covers the gross profits of all gambling operators offering bets on horse-racing in Great Britain. Last year alone, the 10% statutory levy on profits generated around £100 million to support infrastructure improvements, a reduction in injuries, better data and higher prize money.

A similar statutory levy on greyhound racing, but based on 1% of gross turnover, would generate £11.6 million for greyhound welfare. A levy of 1.5% would generate £17.5 million. That is where I would like it to be at the very least, because I do not believe that it would affect the industry very much at all. In fact, it would make for a stronger industry. Immediately, the money would provide a more stable income stream for animal welfare activists and charities that improve kennelling standards, pay for veterinary bills and rehome greyhounds. It would also create an even playing field between contributing bookies.

As the sixth most-watched sport in Britain, the welfare and care of all racing greyhounds, from registration to retirement, must be a fundamental part of its successful future. Last year, 4,963 injuries were sustained by dogs in the greyhound racing industry. We welcome the industry giving those figures, because that was something that we put in our report. Almost 1,000 died or were euthanised. I do not want greyhounds to be euthanised because it is not economic to keep them going. That simply should not happen. Enough money should come from the betting industry to rehabilitate those dogs and get them rehomed.

A campaign is under way to ban greyhound racing altogether. I believe a statutory levy will better protect welfare and the industry in the long run. The industry should embrace that—if it does not, greyhound racing will be under pressure in future. It is wrong of the companies not to embrace the levy and pay more. I congratulate the Minister and the gaming companies that have contributed a voluntary levy on their hard work, but I urge her to do more and greater things to get more money out of the gaming industry.

After Brexit, the Government should come forward at the earliest opportunity with primary legislation to introduce a statutory levy, to equalise welfare contributions and protect greyhound racing. Believe it or not, the statutory levy on horse-racing was introduced before we joined the EU, and it is quite difficult to introduce a levy under EU law. As we leave the EU, we can put a statutory levy on online gambling and racing greyhounds. I would very much welcome that, because putting it in place would bring into line a lot of the gambling companies that are not paying at the moment. We in this House, and people across the country, all want our greyhounds to have a good retirement. Let us ensure that those that can be rehabilitated after racing have a good life. We can then have a good industry that is well run with good welfare conditions that are well funded by the gaming industry.