Fixed Odds Betting Terminals Debate

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Department: HM Treasury

Fixed Odds Betting Terminals

Liz McInnes Excerpts
Tuesday 26th April 2016

(8 years ago)

Westminster Hall
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Liz McInnes Portrait Liz McInnes (Heywood and Middleton) (Lab)
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It is a pleasure to serve under your chairmanship, Sir Alan.

As a member of the newly formed APG on fixed odds betting terminals, I am pleased that the hon. Member for Strangford (Jim Shannon) secured this important debate. I also thank my hon. Friend the Member for Swansea East (Carolyn Harris) for forming the APG, and I congratulate her on being elected as its chair.

I am pleased with my local council, Rochdale, which neighbours the constituency of the hon. Member for Bury North (Mr Nuttall). I was interested to hear what he had to say about problem gambling in Bury, because it is certainly not supported by his local newspaper, The Bury Times, which has highlighted the problems caused by FOBTs in Bury. Last September, however, my local authority, Rochdale Council, formally supported the campaign to have the maximum FOBT stake reduced from £100 to £2.

In the Metropolitan Borough of Rochdale, which encompasses my constituency and the Rochdale constituency, 140 FOBTs are estimated to be spread across 35 betting shops. The amount spent on the machines locally is staggering. According to data compiled by the Campaign for Fairer Gambling, residents of the borough gambled up to £152 million on FOBTs in 2013, which equates to £721 by every man, woman and child in the population—excluding residents aged under 18, who legally are not supposed to be gambling, that is nearly £950 per adult resident. By comparison with the 2012 figures, the research also seems to indicate that the local problem is getting worse. Between 2012 and 2013, the amount spent per resident increased by 112%, representing a massive drain on a borough facing significant challenges.

The gambling industry has introduced a range of voluntary measures to protect gamblers, such as gamblers being able to self-exclude themselves from betting premises, or the introduction of personal limits on the amount of money to be gambled during a single session. Given the vulnerable nature of those who tend to use FOBTs on a frequent basis, however, an approach that is more robust than self-regulation would be preferable.

On local licensing obligations, the Gambling Act 2005 requires local licensing authorities to “aim to permit” gambling, subject to licences complying with three licensing objectives: keeping crime out of gambling; ensuring that gambling is fair and open; and protecting children and vulnerable people. As a consequence, betting shops are required to obtain a licence from their local authority. FOBTs were previously restricted to the highly regulated casino environment but, as we have heard, they are now permitted in betting shops. For that reason, the licensing section of local councils has a role to play in ensuring that local betting shops comply with the relevant legislation.

I am pleased that Rochdale Council voted formally to support the campaign, and I believe that to be the action of a responsible council. I hope that others will follow suit.