Gambling Act Review White Paper

Lord Foster of Bath Excerpts

Wednesday 3rd May 2023 Lords Chamber

[Lord Bassam of Brighton (Lab)]

My Lords, colleagues will know that I hail from Brighton—for film noir buffs, the home of “Brighton Rock”, with its famous racecourse scenes. My city has excellent amusement arcades, two casinos, a Premier League football team—rather good this year—, a horserace track, a dog track and a variety of other activities and sports that have strong links to the gambling sector.

We all like a flutter, and a night at the bingo or a weekend at the races are traditional British pastimes. Clearly, none of us want to change that. However, the publication of this important White Paper comes in part because of the relentless efforts of those with personal experiences of problem gambling. As gambling has moved into the digital age, far too many people have suffered from outdated regulation which has left them or their loved ones, friends and family exposed to significant and sustained gambling-related risk. People will have lost many thousands of pounds because existing safer gambling initiatives were not properly implemented or enforced, sometimes over several years. Many will have fallen into desperate debt, not just for themselves but, of course, impacting on family life. Tragically, some have paid an even bigger price. We should reflect on the fact that lives have been lost completely and unnecessarily.

While this White Paper may not contain all that campaigners hoped for, I pay tribute to them today for their tenacity. We have waited a significant amount of time for this Statement. The Government launched their review of the Gambling Act 2005 back in December 2020. Yes, these matters are complex; yes, the department received a significant number of responses, and yes, there is a balance to be struck, as many people enjoy gambling in moderation. Of course, the sector itself supports in excess of 100,000 jobs. But why has it taken so long for the Government to bring these proposals forward? We have seen multiple Ministers with responsibility for the review; at my last count, six Gambling Ministers and four Secretaries of State for Culture, Media and Sport have promised this White Paper imminently. We have had only a marginally smaller number of Prime Ministers: three, possibly four. So, can the Minister blame those who feel that their suffering has not been a priority for the Government? Can he understand the concerns of some in the sector that uncertainty has been allowed to last for such a long time?

Despite the delays, we welcome the fact that various measures been announced, with many being things that we have long called for and campaigned for. We are glad that the White Paper recognises the significant difference between bricks-and-mortar bingo halls and low-risk gambling and gaming centres, and the unique dangers of the online world. We welcome proposals relating to how online gambling sites will operate, the introduction of a levy and the expansion in the remit of the Gambling Commission. If properly implemented, these changes can make a significant difference to the amount of gambling-related harm people encounter, and improve the services available to those who have been affected by it.

However, and as ever, we need to see some more detail. While it is important that some measures are subject to further consultation, we hope it will not take another three and a half years for further decisions to be made. In another place, the Minister said that many of the changes in the White Paper will be brought forward via statutory instruments to speed up implementation. That is welcome, but is the Minister able to comment on how many SIs will be required and when we are likely to see them?

For matters that require primary legislation, can we expect to see a Bill in the next Session? The White Paper contains no fewer than 30 references to “when parliamentary time allows”—hardly an indication that these matters are being prioritised.

While I am asking questions, could the Minister have a go at answering some which were not addressed by his Commons colleague last week? Will the Gambling Commission be given additional resources? The National Audit Office previously raised concerns about the body’s capacity. If its remit is being extended without appropriate resourcing, that problem can only get worse. Who will set rules in relation to new affordability checks? Will they be set independently of the sector or will it be up to providers? What other initiatives, if any, are the Government looking at for under-18s who encounter loot boxes and other in-game features, which may not qualify as gambling but exhibit or promote similar qualities and behaviours?

Once again, we welcome this important White Paper. Reducing the harm caused by gambling is vital. We are glad that this will seemingly be done in a way that does not disadvantage the lower-risk premises that sustain communities across the country, especially in rural and coastal towns. Far too much time has already been wasted, so we hope that the Government and the Gambling Commission will now move quickly to implement the key reforms and consult smartly on the rest.

[Lord Foster of Bath (LD)]

My Lords, I declare my interest as chairman of Peers for Gambling Reform. We have known since the advent of the smartphone, giving everyone a casino in their pocket, that gambling legislation and regulation were out of date. Online gambling and wall-to-wall TV and radio advertising, coupled with online marketing—not least inducements such as a free bets and VIP offers—have led to thousands of lives being ruined.

For too long the Government have failed to hold big gambling companies to account—companies that, as we saw from the recent William Hill case, prioritise their annual £14 billion profits over customer care and that get the majority of those profits from problem gamblers. We have at least 350,000 such problem gamblers, including almost 60,000 children. This has, in turn, ruined the lives of around 2 million other people. Tragically, over 400 people a year take their own life because of gambling. Of course, it has also cost the nation billions of pounds.

The Government promised reforms back in 2019, but this White Paper has been constantly delayed by chaos, infighting and—as we have just heard—six gambling Ministers since the review was launched. So hundreds of people in that time have tragically taken their own life and thousands more have seen theirs devastated. None the less, the proposals in the White Paper are important and welcome steps in the right direction. At last, they are based on the recognition that gambling should be treated as a public health issue.

They respond directly to the key measures proposed by Peers for Gambling Reform and other campaign groups. Measures recommended by your Lordships’ Select Committee on gambling some three years ago included light-touch affordability checks, stake limits online, a statutory levy—so that all gambling companies contribute fairly and adequately to research, education and treatment—more effective redress mechanisms for individual gamblers and further limits on advertising and marketing. Online gambling products are designed to be addictive, with features such as high stakes and prizes, fast speed of play and the illusion of player control. We strongly welcome proposals to address these issues.

Does the Minister agree there should be parity online with, for instance, stakes in land-based venues, so that casino slot limits are set at £2? It has already taken too long, as we have heard. We should be implementing these and other proposals. What is the timeframe for consultation on these measures and when will they actually be in place?

In relation to affordability checks, given that the average household disposable income is £500 a month and the industry itself classifies gambling more than £75 a month as high spend, can the Minister explain why the White Paper’s proposed unsustainable loss trigger is 10 times that amount?

Given that the White Paper acknowledges that online gamblers use accounts with several different companies, why do the proposals consider only the “possibility” of a single, cross-company approach? Should there not be a single, independently run system of affordability checks?

We strongly welcome the proposals for a statutory levy. However, the White Paper is silent on the detail. Does the Minister at least agree that it should be a smart levy, based on the polluter pays principle, so that those that cause the most harm pay the most? How much money do the Government want to see raised?

We understand that primary legislation is needed to introduce a fully-fledged ombudsman, so we welcome the proposals for interim improved player redress. Will the Minister commit to introducing the necessary legislation to go even further as soon as possible?

We also welcome proposals to address some of the gambling companies’ marketing activities, such as free spins, free bets and bonuses. However, we are extremely disappointed that very little is being done to reduce the way in which we are all bombarded by gambling advertising. The Premier League’s voluntary decision to phase out gambling logos on shirt fronts is surely an acknowledgement that advertising is harmful—although, of course, you will still see gambling advertisements around the grounds, in matchday programmes and even on players’ shirtsleeves. There is clear research showing that advertising leads to people starting to gamble, leads existing gamblers to gamble more and leads those who have stopped to start again. Why would the industry spent £1.5 billion a year on marketing if it was not to boost its profits? Other countries are taking action to ban or restrict gambling advertising. The majority of the British public want us to do the same. Why is more not being proposed in this country?

Like the noble Lord, Lord Bassam, I say that my biggest concern is the delay in implementation. Can the Minister confirm that there are to be at least 12 separate consultations requiring the Gambling Commission to have no fewer than 30 workstreams? How long must we wait for the outcome of all this work? The review of the Gambling Commission’s funding is not planned until next year: will this not further delay the commission recruiting extra staff to do the necessary work, causing further delay?

Overall, while there are some welcome proposals, it is absurd that so many are subject to further consultation, given that there is already a wealth of information and research evidence and there has been plenty of time to look at the details of these measures. Further delay will lead to more lives, families and communities being ruined. Surely the Government should stop dithering and implement.