Lord Gardiner of Kimble
Main Page: Lord Gardiner of Kimble (Non-affiliated - Life peer)Gambling (Licensing and Advertising) Bill
Lord Gardiner of Kimble Excerpts
Baroness Heyhoe Flint (Con)
My Lords, this amendment returns us to an issue that has already received considerable scrutiny. As we have heard, it is vital that national sports governing bodies receive information and intelligence about any untoward betting patterns as a matter of urgency so that they have the greatest opportunity to prevent corrupt activities and behaviour. Spread betting needs to be regulated just as effectively as fixed odds betting. Yesterday, the Minister informed noble Lords that the Gambling Commission is to extend the remit of its licensing code 15.1 to include spread betting in its information reporting requirements, as is placed on those who have a fixed odds betting licence. I commend this remit, because it will address most of the issues that sports bodies have raised. Presently, the two companies that offer spread betting also offer fixed betting and thus have Gambling Commission licences. Could my noble friend tell me when the Gambling Commission will introduce this new licensing code?
I am also pleased that in recent weeks the FCA has finally agreed to take responsibility on this issue, no doubt following pressure generated by noble Lords— I say, immodestly. It has come forward with proposals for its own industry guidance for spread betting companies that take bets on sport. This guidance will be broadly similar to that issued by the Gambling Commission, but there are two main areas where it will be deficient in comparison and concerns remain.
The first is that the guidance will not be made public. I find that somewhat curious. Surely, regulatory requirements set by public bodies should be open, transparent and accountable. How is the sports sector to have confidence in a regulation if it does not know what it says? How can it be used as educational material or act as a deterrent in the sporting world if we cannot show people the actual guidance? Can the Minister give an assurance that a way will be found to make sure that this guidance is made publicly available to those in the sports sector?
Secondly, the industry guidance issued by the FCA will not require as a statutory requirement that the spread betting company must share any information that it has, not just with the FCA but, most importantly, with sports governing bodies. Sports bodies understandably have ongoing concerns about the quality of information that they might eventually receive and the speed at which it will be made available. I gather that the reason for this is that the FCA says that its own statutes do not allow it to instruct spread betting companies to share information directly with sports governing bodies. That would be a major anomaly and a threat to sports integrity, should a spread betting firm operate without having a fixed betting arm. That means that it would not fall under the regime being proposed by the Gambling Commission. Can the Minister tell me what action the Government are taking to ensure that any future spread betting company that is established and does not have a fixed betting operator licence will still be subject to the same requirements that the Gambling Commission is introducing?
The easiest way in which to guarantee a level regulatory playing field between traditional and spread betting companies would be to transfer responsibility for sports spread betting from the FCA to the Gambling Commission, as the amendment would seek to do. I understand that there are powers contained in a Treasury-regulated activities order that would enable the transfer of sports spread betting from the FCA to the Gambling Commission, which may be a more suitable route to address the issue than in this Bill. Could the Minister give a commitment that that option will be further explored as a matter of urgency, and that, should there be any development of standalone spread betting companies setting up, we could expect to see the application of a transfer of sports spread betting from the FCA to the Gambling Commission using that Treasury-regulated activities order? That would ensure that sports integrity continues to be upheld.
Lord Gardiner of Kimble (Con)
My Lords, I thank the noble Lord, Lord Stevenson, for tabling his amendment, which seeks to ensure that spread betting operators who hold a remote gambling licence from the Gambling Commission are required to report suspicious betting patterns to both the regulator and sports governing bodies under licence condition 15.1. Your Lordships have heard that my noble friend has tabled an amendment on that issue.
First, I acknowledge the determination with which Members of both Houses have pursued this matter—and the noble Lord, Lord Stevenson, mentioned one of his colleagues in the other place. The point about our deliberations is that it has undoubtedly led to more speedy progress.
As I said in Grand Committee, the Government take the issue of ensuring the integrity of sport very seriously. People must be able to trust that the sport that they are watching is fair and uncorrupted by cheating. The effect of this Bill will be that this will apply to all operators who offer remote gambling in the British market, regardless of where they are based, and information is at the very heart of the detection and disruption of any such corruption by regulators and sports governing bodies. But the Government believe that the following two-pronged approach achieves the objectives that noble Lords seek. This approach will ensure greater consistency in how suspicious activity is reported, and in a way that can be effectively enforced.
First, the Gambling Commission will soon be publishing its revised licensing conditions and codes of practice, which will include a change to licensing condition 15.1. This will make it clearer that, when a sports spread betting firm holds an operating licence with the Gambling Commission for its fixed odds activity, it will be required to report suspicious activity arising in relation to its sports spread betting activity. The revised licensing conditions will be published by the end of this month, and I say to my noble friend Lady Heyhoe Flint that the revised 15.1 will take effect in June.
Secondly, noble Lords will be aware of the FCA’s commitment to issue guidance for sports spread betting operators. The guidance will be issued under FCA Rule 15.3.17, which relates to the types of fraud and irregularities that must be reported to the FCA. The guidance will make it clear that the fraud and irregularities that will need to be reported by sports spread betting firms include suspicious sports betting. The FCA is also in discussion with the firms to put in place a mechanism by which information received by the FCA can be notified to the Gambling Commission and the relevant sports governing body. The finer details of the guidance are in the process of being finalised with the individual firms. However, I should make it clear that the underlying FCA Rule 15.3.17 is in place now.
I should say to the noble Lord, Lord Stevenson, and my noble friend Lady Heyhoe Flint that where a spread betting firm does not have a Gambling Commission licence, it will be bound by the updated FCA guidance, which will, of course, be mandatory.
We believe that the approach we are taking will work and will facilitate the appropriate sharing of information —the noble Lord, Lord Stevenson, particularly emphasised sharing of information, which is absolutely key to success—and it ensures that the licensing conditions, be it the expanded licence condition 15.1 adopted by the Gambling Commission, or the guidance issued by the FCA under the FCA rules, have a clear route back to the relevant regulator. Any failure to comply by an operator will be enforceable by the relevant regulator.
My noble friend Lady Heyhoe Flint asked a number of questions, seeking confirmation. As regards publishing the FCA’s guidance, as this is individual guidance it would not normally be made public. However, I will ask the two spread betting firms if they would be content to publish this individual guidance, once it is finalised. I should also mention that the first draft of the guidance was shared with the Gambling Commission, for its consideration and comment.
On best practice in information sharing—another point raised by my noble friend—I can confirm that the commission established the tripartite forum, involving betting operators and representatives of sports governing bodies. That forum continues to provide a space for debating these kinds of issues, which, again, is very important.
As regards future changes to the regulation of sports spread betting, I understand that there has been recent discussion between the FCA and the Gambling Commission as to whether the question of transfer needs to be revisited. Indeed, this matter remains very much alive. However, it is a very complex issue, and there was a deliberate decision at the time of the 2005 Act that it remain within the regulatory purview of the FCA as a financial services product. However, I can confirm that the mechanism for transferring the regulation from the FCA to the Gambling Commission is by amending the regulated activities order by statutory instrument. That issue was raised by my noble friend.
I hope that I have been able to reassure noble Lords that action has, and is being, taken on this important issue to ensure greater consistency in the way that suspicious activity is reported, and how this can achieved. The Government take this issue extremely seriously as the work currently going on around sports integrity and match fixing illustrates. We believe that the steps we are taking, and what noble Lords seek, is the right path. Indeed, we think that our approach goes somewhat further than what is sought in the amendments in so far as the new FCA guidance complementing an enhanced 15.1 provision is concerned. On that basis, I very much hope that the noble Lord will feel able to withdraw the amendment.
Lord Stevenson of Balmacara
I thank the noble Baroness, Lady Heyhoe Flint, for her amendment and for speaking to it so excellently and, indeed, adding a number of questions which have provoked the Minister to take us further down this route, which makes us better understand the process that we are going through.
I also thank the Minister for acknowledging that this has been a co-operative team effort. He said that our deliberations had resulted in speedier progress. However, I think that they made the measure a bit better; I think he is being a bit mean in his praise. We were able to get together around some common themes that emerged as a result of the discussions on Second Reading and at the beginning of Committee, and, with others present today, we looked hard at what was being attempted here. In the sure and certain knowledge that gambling (licensing and advertising) Bills do not come before your Lordships’ House very often, we decided to try to hook a lift on one or two paragraphs in order to make improvements, which I hope will be long lasting and effective in terms of improving the situation for the sports governing bodies, the regulators and, indeed, of course, the consumers, who are, after all, what this is all about. That is my rant over.
I am not very experienced in matters to do with legislation, having been a mere three or four years in your Lordships’ House, but this is a model that we might try to export and use again in some future circumstances. I am certainly up for that. I am very pleased that the Minister was able to spell out in a bit more detail some of the additional regulatory framework that exists. It is important that the FCA and the Gambling Commission are in discussion. As mentioned by the noble Baroness, Lady Heyhoe Flint, there probably is a case for transfer of, if not all the functions, at least some of them because it seems to me that the regulatory functions relating to gambling will get more complex and will be challenged by the new technologies, and I am sure that the FCA has other issues on which to focus.
We will return to match fixing in later debates this evening so I will not delay the House further on that point. In the interim, I beg leave to withdraw the amendment.
Lord Gardiner of Kimble
My Lords, I thank the noble Baroness for tabling this amendment in respect of gambling advertising, particularly because, as noble Lords have said, there have been some recent developments in this important area.
The Government recognise that the relaxation of restrictions on gambling advertising following the implementation of the Gambling Act in 2007 has led to a significantly greater volume of gambling advertising on television and in other media. Indeed, over the weekend my right honourable friend the Secretary of State expressed concern about some of these developments and outlined some of the actions that will be taken.
Although the nine o’clock television watershed arrangements—I think that the noble Baroness, Lady Howe, mentioned 10 o’clock but my understanding is that the watershed arrangements are from 9 o’clock at night—have limited the exposure of children to such advertising compared with adults, children still see considerably more gambling advertising on television than ever before.
In addition, we have seen significant innovation in the gambling industry since the current regulatory controls were established in 2007. The codes, including the industry voluntary code, which govern gambling advertising are now applied across a much changed gambling landscape with the availability and promotion of new products which were not anticipated when the codes were devised. These technological developments have led to intense competition in remote gambling advertising, which has coincided with an increase in complaints about gambling advertising to the Advertising Standards Authority. It is timely, therefore, that the codes are re-examined to ensure that existing controls keep pace with developments in the market and that they remain consistent with public expectations about gambling advertising.
Noble Lords may be aware that the Government have been working for over six months with the organisations responsible for regulating gambling advertising to monitor the impact of developments and to consider whether the current controls remain adequate. In particular, I reassure the noble Baroness, Lady Jones, that this work includes both remote gambling advertising and other forms of online gaming activity, including online bingo. As a result of these discussions, I am now in a position to explain the four strands of work being undertaken, and to what timetable, to ensure that the regulatory controls on gambling advertising are properly examined, especially in relation to children and the most vulnerable. The Secretary of State particularly mentioned children and the most vulnerable.
I say to my noble friends Lord Clement-Jones and Lord Mancroft that it is absolutely key that this work is rooted in evidence and that there is a thorough review. Therefore, the first of the four strands is that the Government have asked the Remote Gambling Association to co-ordinate an industry-led review of the voluntary Gambling Industry Code for Socially Responsible Gambling. As noble Lords will be aware, this code supplements the principal regulations on gambling advertising by providing industry standards in certain areas, including educational messaging and the 9 pm watershed arrangements for television advertising. The Remote Gambling Association has agreed to complete its review with a view to coming forward with any proposed revisions by the summer of this year.
Secondly, the Committee of Advertising Practice and the Broadcast Committee of Advertising Practice have committed to evaluate the findings of a new report into gambling advertising to consider what regulatory implications arise as a result. This report will be published by the Responsible Gambling Trust this month and will examine the available evidence on gambling advertising and its relationship with problem gambling. The committees will publish their findings on completion of this work, which could lead to changes in the principal codes controlling gambling advertising. The findings are expected by the autumn of this year.
Thirdly, the Advertising Standards Authority will undertake a review of its enforcement action on the gambling rules, taking into account internal intelligence, complaints statistics and trends to ensure that it is enforcing the rules proportionately and consistently. The ASA will communicate the outcome publically by the autumn of this year.
Finally, the Gambling Commission will consider what revisions might be necessary to the licence conditions and codes of practice to ensure that all gambling advertising continues to comply with the licensing objectives of the Gambling Act. This work will be principally focused on ensuring that free bets and bonus offers are marketed in a fair and open way by the gambling industry.
I hope that that provides noble Lords with the reassurance that significant activity, which can have a real impact, is in hand. To my noble friends in particular, I emphasise that this will be rooted in evidence, and there are four strands to it. The terms of reference for the reviews are currently being defined and will be made public by the spring.
I am confident that the multi-agency approach will provide the comprehensive and robust examination that is necessary. As regards the point made by the noble Baroness, Lady Jones, about consultation, the Government intend to involve all relevant stakeholders during the review. Any statutory regulations would be preceded by consultation and the Government will confirm their position by the end of this year. They will consider the findings of the review before determining what further action may be necessary and will confirm their position by the end of the year. I will arrange for a summary of the findings of the reviews and the Government’s response to be placed in the Libraries of both Houses as soon as they are available but definitely by the end of this year. I very much thank all noble Lords for contributing to the debate. On this basis, I hope that the noble Baroness will feel able to withdraw her amendment.
Lord Collins of Highbury (Lab)
My Lords, I am very pleased to associate myself with this amendment. I hope that my new alliance with the noble Viscount will produce positive results tonight. Perhaps it is a sign of things to come and we can co-operate on other issues.
What the noble Lord said reminded me that, in the Chinese zodiac, I am in fact a horse. However, that does not mean that I support the amendment simply from a vested interest point of view. Many people have placed a bet on a horserace at one time or another, but I suspect that few realise that racing is the second largest sporting employer, supporting a predominantly rural industry that makes a significant contribution to the UK economy.
As we have heard, the purpose of the amendment is to capture the revenue that should be paid, as Parliament has already determined, from all betting operators that take online and telephone bets on racing in Britain, wherever they are located. I pay tribute to my honourable friend Clive Efford in the other place, who has consistently raised this issue. The change, as we have heard, could be worth up to £20 million a year to British horseracing, and would undoubtedly lead to a healthier sport, and to more investment, growth and jobs.
Too often, people focus just on the prize money and do not see the work of the board and the training, education and employment initiatives that the levy supports, year in and year out. Nor do they see the broader picture of how the industry has a direct link to building sustainable rural economies. Why should offshore betting operators and those in betting shops pay the full levy while others who are based overseas and do not have a voluntary agreement pay nothing?
In Committee, we heard the argument that any reform of the levy to capture revenues under a point of consumption licensing regime would constitute state aid. As the noble Viscount pointed out, that interpretation is not accepted by the British horseracing industry—and nor, following the ruling of the European Commission, is it one that we need to accept. The French raised the issue and we have had a decision on it.
This sets a precedent that I understand is being reviewed by the department’s lawyers. Clearly it is better that we should rely on new legislation rather than just have another round of disputes following messy court cases. I agree with the comment that in the long term, the Government may want to consider a more modern and commercial framework for the levy. That is something that I know the industry would support. However, with the best will in the world, the sport will be waiting several more years for that, all the while losing out on a vital source of income. Action has long been required and Ministers must not simply allow this once-in-a-Parliament opportunity for primary legislation to pass.
Clearly, there is a strong argument for further consultation and assessment of the implications of the European Commission’s warning on state aid. However, I would ask the Minister to begin consultation on levy reform as soon as possible and to include all options, particularly the option for a “horseracing right”. As the noble Viscount said, the amendment is about the reserve power to allow that to happen, giving the Government the opportunity to consult the Commission and, if that route of action is considered the right one, the power to act. I look forward to hearing the Minister’s response.
Lord Gardiner of Kimble
My Lords, my noble friend’s amendment seeks to give the Secretary of State reserved power to extend liability to pay the horserace betting levy to offshore remote gambling operators. We have had some useful discussions about the future of the levy at all stages of the Bill, including some particularly interesting ones in Committee. They have been extremely valuable and I want to reassure your Lordships that the Government have been listening. I am grateful to all noble Lords for the constructive discussions we have had.
We agree with the view that while we still have a statutory levy, it should be fairly applied. Furthermore, we are persuaded that including a clause about extending the levy to offshore remote operators is fully in keeping with the context and purpose of the Bill. We will therefore bring forward a government amendment at Third Reading which will remedy your Lordships’ concerns about ensuring a level playing field between onshore and offshore betting operators in terms of the levy. With the consent of the House, this amendment will give the Secretary of State power to use secondary legislation to secure extension of the levy to offshore remote operators. I shall ensure that all noble Lords who have expressed an interest in this matter during the Bill’s passage are invited to a briefing on the detail of the amendment before Third Reading. Bringing forward a government amendment will complement the work which, as I mentioned to your Lordships, is already under way to seek clarity on the state aid issues from the European Commission. The Government will consult on implementing an extension before any secondary legislation is brought before Parliament.
The Government want British racing to continue to thrive. I know from my own experience just how important racing is to so many in the countryside and of course in all communities—not only its economic impact but the pleasure it gives to so many millions of people. Extending the levy to offshore remote operators will help achieve the objective we all share. I want to say particularly to the noble Lord, Lord Collins of Highbury, that bringing forward a government amendment about extending the levy in the way that I have described does not of course close down options for wider levy reform or replacement. This is very much work in progress.
The Government have committed to bringing forward an amendment at Third Reading which will achieve the outcomes being sought tonight. Consequently, I ask my noble friend whether he will withdraw his amendment.
Viscount Astor
My Lords, I am particularly grateful to my noble friend for his response and I thank him for all the help that he has given me. I also thank the officials in his department for all the help that they have given on this issue. It has been extremely useful and we have come to a very satisfactory conclusion.
I think that all noble Lords agree that we want a commercial relationship between all the entities that comprise the racing industry. However, we need the Government to take a lead. If they do not, I am afraid that the industry will not come up with a solution itself, as there are too many vested commercial interests at play. I hope that the Government will consider setting up a consultation process with all involved in the racing industry to consider how best to put this new commercial relationship in place to replace the levy at a point in the future.
I should have declared an interest in that I own one and a third legs of a three year-old. I have to say that, on its current form running as a two year-old, I do not think it will be contributing to the levy or indeed benefiting from it. However, I am ever hopeful, and if your Lordships are interested in contributing to the levy, it is called Squaw King—it is trained by Eve Johnson Houghton and I very much hope it will run in May. In the mean time, I thank all those who spoke in this debate, particularly my noble friend and the noble Lord opposite. I thank the Minister and beg leave to withdraw the amendment.
Lord Mancroft
My Lords, I, too, put my name to the amendment in Grand Committee. Amazing though it may sound to your Lordships, the Prime Minister manages to travel the world without my company so, unlike my noble friend Lord Astor, I cannot claim that I was in China. I cannot actually remember where I was, but it was not in China.
There is no need to explain the background: my noble friend Lord Clement-Jones has done that adequately. Reading the Hansard of Committee stage to prepare for this evening, I noticed that my noble friend Lord Flight—who, sadly, is not in his place this evening—described the anomaly that my noble friend Lord Clement-Jones talked about and which the amendment is intended to address as a silly anomaly. Nonsense, he called it. He said that the amendment in its previous incarnation was straightforward and common sense. That was quite right. He also described the Government’s position at the time as pretty silly, and he was quite right about that too.
In Committee, the Minister talked about basing remote gaming around existing machine rules—I think I have quoted him correctly on that. It was that which really drew my attention to this, because I have history on legislation in gambling regulation. That is the sort of thing that leads to ineffective and bad regulation. That is exactly what the previous Government tried to do when a new class of gaming machine came out. That is the problem that we now have with what are called fixed-odds betting terminals, which are not betting terminals at all: they are gaming machines. It is really important when new machines and new forms of gambling appear that we regulate them correctly and do not try to fit them into boxes that are not really there. That is what I would call the DCMS’s attempt at the King Canute style of regulation, holding back the waves of new technology. That is what we did before and we must be very careful not to do it again in this case. My noble friend Lord Clement-Jones’s amendment is an attempt to address that.
In truth, I think that the Government have now accepted the principle of what my noble friend’s amendment is intended to do; I hope that they have. The debate before us this evening is really about whether it is better to put it in primary or secondary legislation. I know that, originally, the Government’s view was that this was not the right legislative vehicle. I have heard that before so many times. I am not quite sure what the right legislative vehicle is, but I am absolutely certain that the general public do not care; they just want it done. As my noble friend Lord Astor said, the right legislative vehicle—any legislative vehicle—does not come along very often, so when one comes along, you want to grab it.
If the amendment is to be withdrawn and the Government are to move forward in a different direction, the Minister should give your Lordships a commitment on a timetable, so that this does not just drag on and on, as issues have before. The problem with secondary legislation is that it is impossible to amend. If that is the route that the Government are determined to go down, my understanding is that the industry is not happy with it and would much prefer primary legislation but, obviously, like any industry, it will take what it can get. It seems to the industry, and it certainly seems to me, that primary legislation is the right vehicle for this. Unless the Minister can give us a very good reason why it is not, that is what we should do. There is quite enough flexibility in the provision. I think that your Lordships deserve the Government’s commitment to a timetable and to flexibility for the industry to make sure that we get this right. Unless we have those commitments, I see no reason not to take the view of my noble friend Lord Clement-Jones and pass the amendment. I look forward to hearing the Minister’s response.
Lord Gardiner of Kimble
My Lords, first, I thank my noble friend for his amendment and all my noble friends who have spoken to it. It is intended to allow the casino sector to introduce its specific remote gambling product into casino premises. As I said in Grand Committee, the Government are not opposed in principle to that, provided that appropriate player protections are put in place. We remain concerned that any changes should be effected within existing machine regulations so that appropriate controls can be put in place, rather than outside them in primary legislation, which this amendment would cause.
I have looked into this issue carefully and particularly because, on the face of it, this seems like a simple change to current arrangements by allowing casinos merely to promote their own online games within their premises. On further reflection and in reality, however, this is a more complex change that would introduce credit card play into the casino environment for the first time and permit far broader sports betting. It could also allow casinos to develop even more sophisticated remote gaming machines without the proper controls afforded by machine regulations.
Casinos are already able to offer remote gaming devices in their premises within existing machine controls. Those regulations create a carefully crafted hierarchy to ensure that machine-based play can be offered only with appropriate player protections in place. Player protections are a key part of this; they include restrictions on the number of machines, their location and the circumstances under which they can be used. I acknowledge that my noble friend Lord Clement-Jones is absolutely right to say that casinos are at the top of the regulatory pyramid. However, I also hope that noble Lords will agree that it is incumbent on the Government—indeed, that the Government have a responsibility—to consider carefully the impact of any new gambling arrangements, to ensure the avoidance of unintended consequences and an increase in problem gambling. My noble friend Lord Mancroft mentioned the way in which developments can take us and given the pace with which gaming technology develops, this is not merely a theoretical risk.
The casino industry recognises that any changes need to be made subject to appropriate player protections. We welcome this, as it reflects the very constructive dialogue that officials have had with the industry to date on this issue. This is also acknowledged in my noble friends’ amendment, which gives the Secretary of State power to make regulations for the nature and circumstances in which remote gaming machines can be used in casinos. This brings us much closer to the current regulatory structure and, in our view, it is difficult to see the need for primary legislation. Indeed, there would be a real risk of introducing regulatory anomalies in the existing primary legislation route.
For these reasons, the Government do not think that taking remote devices outside existing regulation is the right route to tackling this issue. The Government consider that this issue is best progressed instead through the ongoing and very constructive discussions with industry, and that any changes implemented can be done through secondary legislation. I emphasise that the Government are actively engaged in constructive discussion with the casino industry and the Gambling Commission to consider the appropriate legislative and regulatory tools that would need to be put in place. I understand entirely that the industry would like to have primary legislation as its first objective but it has acknowledged that secondary legislation is a viable option to pursue these proposals.
My noble friends Lord Astor, Lord Mancroft and Lord Clement-Jones quite rightly asked for some assurances. The discussions are scheduled to conclude at the end of this month and Ministers will then consider the outcomes. This is very much a live discussion and I give those reassurances to my noble friends. I also emphasise to your Lordships that the Government are not ruling out change but that we think we need to approach this in the right manner and ensure that such changes are made through an existing regulatory framework that applies to gaming machines while bringing proper scrutiny, assessment, consultation and—this is paramount—consumer protections. It is for these reasons and because I think that there is another route for this that, while I understand what my noble friend would prefer, I ask him whether he might withdraw this amendment.
Lord Gardiner of Kimble
My Lords, first, I thank my noble friend for moving this amendment. I very much agree with her and regret that my noble friend Lord Moynihan is not with us tonight. I thank all noble Lords for speaking in this debate.
Match fixing is an issue about which I know many of your Lordships feel very strongly. The Government fully share those concerns. Match fixing has no place in sport and we must do all we can to eradicate it. That is precisely why the Secretary of State held a match-fixing summit on 10 December and the Sport and Tourism Minister followed that up with a second meeting on 3 February. That work remains a priority. I emphasise that Ministers in the department see this as extremely important ongoing work.
My noble friend’s amendment suggests that Section 42 of the Gambling Act 2005, covering the offence of cheating at gambling, is inadequate in its current form. The Government recognise that sports governing bodies have concerns about that section. Indeed, sports governing bodies were invited on 3 February to provide case studies that they believe demonstrate the failings of Section 42 in dealing with gambling-related match fixing. The Government will consider any such evidence when it is supplied. We have received two case studies to date and are aware that there may be others in the pipeline. However, we have yet to see robust evidence demonstrating a problem with Section 42 as opposed to other factors such as lack of evidence. Indeed, lack of evidence of a link between match fixing and corrupt betting would make it difficult to pursue a successful prosecution under either Section 42 or my noble friend’s amendment.
I should also say to my noble friend Lady Heyhoe Flint that Section 42, as a gambling provision, can apply only where there is evidence of cheating at gambling, as has already been discussed. As the noble Lord, Lord Stevenson, said, that is why we have long established and recognised that other criminal offences may need to be used, given that match fixing can be realised in various forms.
The noble Lord, Lord Stevenson, also referred to Section 42 in the context of negotiations on the Council of Europe’s draft convention. The Government recently reviewed Section 42 in that context. All the legal teams and others came to the conclusion that Section 42 as currently drafted, together with other fraud and corruption offences already on the statute book, gives prosecutors the tools required to deal with the circumstances that might constitute match fixing.
As the noble Lord, Lord Stevenson, said, there have been some criticisms of the 2005 Act and, perhaps, some of its consequences. At the time, Section 42 was deliberately crafted to be a broad offence in which “cheating” was intended to have its normal, everyday meaning. The provision expressly extends to actions that involve actual or attempted deception or interference with the processes involved in the conduct of gambling or any other race, game, event or process to which gambling relates. That was done precisely to ensure that it could be used in a wide range of circumstances. That is why we are concerned about changing it. I emphasise that point.
Section 42 also clearly spells out that the offence is committed not just by the person who cheats but also by a person who does something for the purpose of assisting or enabling another person to cheat. That means that Section 42 already covers all the ground that my noble friend’s amendment seeks to add. Section 42 already applies to both remote and non-remote types of betting, whereas this amendment applies only to remote betting. We therefore believe the amendment could create confusion and that it is better to retain the existing provision for that reason.
My noble friend’s amendment would also raise the custodial tariff for Section 42 offences from two to 10 years. It has been argued that an increase in custodial sentencing will both act as a deterrent to those who may be involved in criminal match fixing, and influence law enforcement agencies to investigate and prosecute more cases.
I will explain to your Lordships why we believe that there is no need for a change in the tariff. The Government consider that the penalties in Section 42 remain proportionate and appropriate, and are consistent with other offences in the Gambling Act. There is nothing to suggest that the threat of a two-year jail sentence is not a sufficient deterrent or that law enforcement agencies do not take match fixing sufficiently seriously.
The UK has a number of legislative tools at its disposal to combat corruption of sports competitions. The toolkit naturally includes Section 42 of the Gambling Act 2005, where there is a link with betting. We can also use other fraud and corruption offences where that link with betting cannot be established. It does not mean that Section 42 is inadequate simply because it cannot be applied in every situation. When a sportsperson is found to be engaged in match fixing not linked to betting, the penalties under the bribery and fraud Acts are severe, as your Lordships have already said.
The fight against match fixing is not just about legislation. The UK’s approach to combating match fixing, based on effective collaboration between the Government, the regulator, betting operators, sports governing bodies and the law, is working and, indeed, is highly regarded internationally.
I emphasise that the Government take the fight against match fixing extremely seriously. I do not know whether the match-fixing summit was the first, but it is an indication that the Secretary of State and Ministers take this matter very seriously and want to work with the sports governing bodies.
My noble friend Lady Heyhoe Flint asked whether the Government would be prepared to undertake a formal review of Section 42, in line with what the Parry review suggested. As I said, in the cross-government review of Section 42 in the context of the European convention on match fixing, we concluded, and the legal advice was, that Section 42 was robust as written. However, of course we are willing to consider carrying out a review if and when sports bodies provide robust evidence demonstrating that there actually is a problem with Section 42. That is the position that we have come to.
I will be asking my noble friend to withdraw her amendment—not because we think that match fixing is not a priority; we do. The lawyers have looked at the provisions of Section 42 and we are of the view that, until we have proper and robust evidence that elements of Section 42 are not working properly, we think it is premature and unwise to move. I have not gone back to read Hansard, but I have been informed that Section 42 was drafted to capture as much of the conceivable parameters as possible. That is why it was couched in the way it was.
I have looked into this matter very strongly because I know that it is of extreme concern to the sporting world and beyond, to those who enjoy sport. I have looked into it. I have sought to outline the reasons why we think that Section 42 is robust but, as I said, we are willing and look forward to hearing from sports bodies if they can come forward with robust evidence, which we will then consider very thoroughly. In the mean time, I ask my noble friend to withdraw her amendment.
Baroness Heyhoe Flint
My Lords, we are moving into extra time. I thank the Minister for his responses and, in most cases, his assurances. I know that there has been a great amount of background work and energy put into what he referred to as a small or niche Bill. I thank the Bill team sincerely for the courtesy of the meetings which we have had and I apologise for not being fully attentive in the earlier debate on Amendment 4, when I think that I must have been dreaming in the outfield.
Perhaps I might reiterate that sport has had and has concerns and, to a certain extent, I am very aware of the fact that the Government are seeking to deal with them. In the eyes of sport and in the protection of its integrity, even though my noble friend the Minister referred to the Bill in the early days as a small Bill, I think that sport considers it to be a big Bill because this is a growing threat to the integrity of sport. I accept the assurances from the Minister in true sporting spirit. I came off the substitutes’ bench to support my noble friend Lord Moynihan, who bowled me a googly when he told me that he had to be abroad at this stage and was unable to contribute. I have a feeling that he may continue to pursue his concerns on his return but, in the hope that he will not then put me into the sin bin, I beg leave to withdraw my amendment.