Draft Gambling Act 2005 (Amendment of Schedule 6) Order 2018

Kevin Brennan Excerpts

Monday 29th January 2018 General Committees

[Kevin Brennan (Cardiff West) (Lab)]

I thank the Minister for her explanation of the draft order. My hon. Friend the Member for Tooting (Dr Allin-Khan) would have spoken in the Committee, but as she is not available, I hope that I can do some justice to what she might have wanted to say.

The debate on this statutory instrument is very timely because there is a strong level of interest in problems associated with gambling. Recently, the professional footballer Joey Barton, who is currently under suspension for betting on football matches—exactly what the draft order is meant to prevent from happening in the sports listed—said that gambling was “culturally ingrained” in the sport and that he thought that 50% of professional footballers bet on matches, in breach of the rules of the Football Association. I do not know whether Joey Barton did an academic study to find that out or whether he was telling an anecdote as a longstanding, albeit highly controversial, professional footballer, but it is quite a stark claim to make.

We are considering a draft order that adds to the list of organisations that the Gambling Commission can consult and share information with about problems that include potential fixing of football matches and other sporting events. In that context, to inform our consideration of whether the draft order would be an effective measure given the scale of what it is attempting to do, it would be quite useful to hear the Minister’s view of that claim by Joey Barton that that sort of thing is endemic and a real problem in our sporting world, particularly in football. Does the Minister think that such a flagrant breach of the rules is happening in the list of sports to be added to schedule 6 of the Gambling Act?

The work that the Gambling Commission and Sports Betting Intelligence Unit do is essential in collating intelligence and identifying suspicious betting patterns and behaviour. The Commission was set up to prevent gambling being a source of crime and disorder, and to ensure that gambling is conducted in a fair and open way. It is there to shield those who fall victim, including children and vulnerable persons, from harm or exploitation. Only through that work being done thoroughly can we help prevent the numerous types of betting fraud. We support the Government’s taking steps to review and expand the range of partners and authorities with which the Gambling Commission can provide and share intelligence.

It is important that when given the opportunity, we stamp out corruption wherever we can, to protect the integrity of the sports that many of us love to watch and take part in, as the Minister quite rightly said. But it seems to us that a much wider look at problem gambling is needed beyond the scope of the draft order. That is an issue that the shadow Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for West Bromwich East (Tom Watson), has frequently highlighted. I hope that the Government will take up that leadership beyond the draft order.

I was glad to see when reading through the notes from the consultation that took place last year that the Department reached out to a number of key player associations, licensed gambling operators, sports governing bodies and academics. That sort of engagement is necessary to better reflect the current spectrum of sport governance bodies and ultimately to improve the flow and quality of intelligence. We would like the commission to expand and to interact with and consider governance bodies that represent less traditional sports. The digital age has significantly broadened the gambling sector: it is no longer just traditional sports such as horse racing that are the subject of gambling. There is nothing wrong with a little flutter on the gee-gees, which is a long tradition—my father enjoyed a 10-bob yankee every Saturday down at the bookies—but gambling has grown considerably.

When I was growing up, no one would have considered gambling on a football match beyond, perhaps, filling in the Littlewoods pools every week—or Zetters: other pools were available—yet, irony of ironies, just the other week I watched my hon. Friend the shadow Secretary of State make a speech in a venue with television screens about the intensification of gambling in the digital age, and as he was talking the screen behind him flashed up: “Chelsea to win 2-0: 8/1.” There is an immediacy to gambling that simply was not there before, and that presents a challenge. Online services have made it easier for people to place bets on a wider variety of sports and events 24 hours a day, so we are talking about a very different environment. A quick click reveals that most gaming sites encompass everything from the upcoming winter Olympics to futsal and ice hockey, and it would be prudent of the commission to consider further the diverse range of sports that are now available for gambling for listing in the future.

It is important to acknowledge that online operators are discovering that our rapidly growing digital economy is a lucrative target for online money launderers and other cyber-criminals. Gambling sites have seen a dramatic and sustained spike in attacks and suspicious activity just this year, so I hope that the draft order makes it easier for the Gambling Commission to continue its work to ensure that the highest standards of betting integrity are upheld.

Will the Minister clarify a couple of points? Were any of the bodies that were suggested for addition to part 3 of schedule 6 as part of the consultation not selected for addition? If that is the case, what were they, and why were they not included? People bet on a much wider range of sports these days, and it is in the public interest for us to know whether the Department feels that the governing bodies in some areas are not sufficiently up to speed to be included on the list. Why did the Secretary of State not take this opportunity to include a wider range of sports governing bodies, such as England Netball and British Cycling, which has been the subject of public debate and controversy in recent years? Would the Minister like to make the Committee aware of any concerns about those bodies or others that account for their non-inclusion?

The Government state in point 10.1 of the explanatory memorandum that the draft order

“will reduce overall costs for the Commission”.

I think the Minister provided some explanation by saying that legal fees would be reduced if governing bodies were listed in the draft order, because otherwise information could not be shared with them unless both they and the Gambling Commission got expensive legal advice. I think that was her explanation, but the Government must of course back up such assertions, so what is her estimate of the reduction in the commission’s costs?

The Government go on in the explanatory memorandum to state that the draft order is actually “deregulatory” because of that fact. I do not know whether that is something to do with the necessity of pretending that regulations are not regulations to meet the target of two in and one out, or whatever it is these days, but the draft order is a regulation and the Government say that it will save money. Since they chose to make that point in their own memorandum, the Committee should be told how much money the Gambling Commission is likely to save.

On a more technical point—this is a genuine query—can the Minister clarify, in relation to the draft order’s territorial application, the relevance of where some of the new bodies are established and the extent of their territorial reach? For example, World Rugby Ltd, which is a straight replacement on the list of the old International Rugby Board, is incorporated in Ireland as set out in the measure and has jurisdiction across the globe, including in Great Britain. European Professional Club Rugby is, again, a replacement body. It is established in Switzerland and covers Europe, again including Great Britain.

However, the Irish Rugby Football Union, which is included in the list, is of course established in Ireland only, and to the best of my knowledge it has jurisdiction there. Of course, part of its operation covers a part of the United Kingdom, because in Ireland rugby is played on a United Ireland basis; but paragraph 5 of the explanatory memorandum states:

“The extent of this instrument is Great Britain”

and

“The territorial application of this instrument is Great Britain.”

It specifically excludes Northern Ireland from the application of the measure. Can the Minister clarify the basis on which the Irish Rugby Football Union is included, therefore? I have nothing against it at all, but wonder why it is included among the new bodies to be added to part 3 of schedule 6 to the Gambling Act 2005.

--- Later in debate ---

[Tracey Crouch]

That is about integrity. Within the gambling review, there is a section on in-play betting, in particular the relationship between advertising and in-play betting. There is a slight nuance in my answer to the hon. Gentleman’s question. We are aware of some of the tone and content issues around in-play betting, but the gambling review is not looking specifically at that. The legislation would necessarily look at those issues. I remind the hon. Gentleman that the 2005 Act is a piece of Labour legislation, and I am merely updating it to include a new set of organisations to ensure we have the widest integrity set within sport.

That goes back to the comments from the hon. Member for Cardiff West. Strict rules and regulations are in place for betting on sport, and particularly on football matches. He mentioned recent press reports on Joey Barton and family members and so on, but is important to remember that while we have not seen any evidence around the 50% figure referred to, the Football Association takes such matters seriously. The Professional Players Federation should be commended for its work in educating professional athletes, including footballers.

The FA has banned players and people involved in football from betting on football competitions. The Gambling Commission also looks into such issues and has the power to deal with them. Those rules and regulations are in place, and we clearly need to keep an eye on what is happening.

The hon. Member for Cardiff West mentioned other sports and asked why not all governing bodies in this class have been added. That is because not all governing bodies recognised by the home Sports Councils have the standard of information management that would let the Gambling Commission share information routinely with them. The commission is working to engage those organisations about betting integrity considerations and to promote best practice. However, for this tranche, it was felt that not all sports organisations were necessarily applicable.

It is vital that the commission is regarded as an organisation that treats data with respect. Given that the hon. Gentleman has done much on the digital economy and data protection with the Secretary of State, I am sure he fully understands that point.

[Kevin Brennan]

I asked specifically about British Cycling, which I was particularly interested in. Was it not included because it is unable to meet those standards?

[Tracey Crouch]

I cannot answer that question at this point. I will get back to the hon. Gentleman when I know whether there is an answer.

With respect to the hon. Gentleman’s comments on the economic evaluation, an evaluation of the impact of updating schedule 6 was carried out. The measure is not expected to impose any burdens on sports governing bodies. It is estimated that each legal advice request costs about £6,700 if required for the Gambling Commission. That information was provided by the Gambling Commission, but that is only an estimate and every request varies. The burden is lightened by being added to schedule 6, so organisations can share without that legal check, which is the point the hon. Gentleman made.

On territorial extent, I am pleased that the UK is home to many international sports bodies. We have hosted some of the greatest sporting events, including in Cardiff, which hosted the champions league final last year. We should be proud of that. With that in mind, it is only right that all relevant international sports bodies such as the Tennis Integrity Unit, the International Olympic Committee, the International Paralympic Committee and the Commonwealth Games Federation are listed in schedule 6. Tackling corruption and protecting the integrity of sport requires a co-ordinated approach both domestically and internationally.

On the hon. Gentleman’s question about Northern Ireland, the Gambling Commission regulates gambling in Great Britain—it is entirely devolved in Northern Ireland. However, schedule 6 lists a number of international as well as domestic sporting bodies with which the Gambling Commission can share information to tackle corruption and protect the integrity of sport. The commission already shares information with sports bodies based in devolved Administrations, such as the Welsh Football Association. The update will also include World Rugby Ltd and the Rugby League European Federation, which are based in Ireland.

[Kevin Brennan]

I do not want to labour the point too much, but my point is that it seems entirely understandable that international bodies that operate within Great Britain, such as the International Olympic Committee or whatever, might be part of the list. However, it seems odd that a body that operates entirely outside the jurisdiction of the Gambling Commission was included when the draft order specifically relates to Great Britain, not Northern Ireland. That is the point I was trying to make, but I will not labour it.

[Tracey Crouch]

Gambling is, in many respects, regulated and taxed at the point of consumption. We have to remember that it is about consumers and protecting the integrity of sport within these shores.

The hon. Member for Chesterfield raised some excellent points around tennis, which I know is a passion of his. I am pleased that the Tennis Integrity Unit is now coming on to the list. We will both remember the scandal that rocked tennis about 18 months ago, which I think exposed the vulnerability of younger players coming through the system, and in those sports he mentioned that do not give the highest level of prizes at the earliest part of the players’ journeys. The Sports Betting Intelligence Unit works incredibly well with operators and federations to keep a watch on those things. Having the Tennis Integrity Unit on board means that we can have much better oversight and control over the sports he referenced, particularly where individuals are concerned.

The hon. Members for Cardiff West and for Paisley and Renfrewshire North made the point that betting has changed. The reality is that betting in sport has increased with the advent of new technologies. Many sports are played in the UK and the wider world. To go back to another point made by the hon. Member for Cardiff West, I do not think it would be proportionate to simply list all those sports in schedule 6. The approach we are taking in the UK is primarily risk based, which has informed the sports bodies being presented for inclusion. That obviously includes tennis. The hon. Member for Paisley and Renfrewshire North also raised issues around integrity and protection.

It is important to remember that millions of bets are placed on sport every day, and a huge amount of work goes on behind the scenes to ensure that the integrity of betting on sport is maintained. The draft order that the Committee is considering will make sure that we update all the regulations to ensure that the sports that we love maintain that high level of integrity.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Gambling Act 2005 (Amendment of Schedule 6) Order 2018.