Gambling Industry: Gambling Reforms

Lord Foster of Bath Excerpts

Tuesday 17th May 2022 Lords Chamber

Asked by

[Lord Foster of Bath]

To ask Her Majesty’s Government what assessment they have made of claims by the gambling industry that their proposed gambling reforms will reduce tax revenues.

[Lord Foster of Bath (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as chairman of Peers for Gambling Reform.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, without speculating on our ongoing review, gambling duties are based on gross gambling yield. Any changes which reduced industry revenue would lower tax receipts. Conversely, changes which reduce harm could cut costs to the Government and some displaced spending would likely go to other sectors that pay tax. We will publish our White Paper in the coming weeks.

[Lord Foster of Bath (LD)]

I am grateful to the Minister for his response. I am sure he will be aware that some £5 billion of gambling companies’ annual profits tends to come from people with gambling problems or those who are in danger of having them, costing lives and increasing the cost to the NHS. Reducing gambling harm would reduce NHS costs and, with spending displaced from gambling to more labour-intensive sectors, create up to 30,000 additional jobs and increase the funding going into the Treasury coffers, as demonstrated by the NERA report. Does the Minister accept that it is possible to reduce gambling harm and have a stronger economy by doing so?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right that tackling problem gambling is good not just for the people affected by it but for the services which treat it. We are also aware that there is a black market in gambling and that problem gamblers may be liable to continue their problem gambling in that area. We are considering both these things as part of our review of the 2005 Act.