Gambling Advertising

Lord Parkinson of Whitley Bay Excerpts

Thursday 25th April 2024 Lords Chamber

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

My Lords, I too thank the noble Lord, Lord Foster of Bath, for initiating today’s debate and for the way he opened it. I had the pleasure of working with him, and a number of noble Lords who have taken part in today’s debate, on the Select Committee that he mentioned, before I became a Minister at DCMS. So I thank him for his tenacity in this area.

The Government recognise the concerns that he and many other noble Lords have raised about the impact of gambling advertising, particularly its impact on children. The debate about advertising reflects the balance we are aiming to strike with our vision for the gambling sector more broadly: regulating an innovative and responsible gambling industry on the one hand, and fulfilling the duty of government to protect children and the wider public from gambling-related harm on the other.

That is why, as part of our review of the Gambling Act 2005, we took an exhaustive look at the best available evidence. We are certainly not dismissive of evidence: on the contrary, we have sought to take an evidence-based approach. The White Paper that we published in April last year includes a robust, balanced package of reforms to prevent and minimise the risks of gambling-related harm.

Since the implementation of the Gambling Act under the last Labour Government nearly 20 years ago, gambling advertising, marketing and sponsorship have become more visible and widespread, and we have seen a visible integration of gambling advertising within sport. While this continual growth has not resulted in an increase in gambling participation rates, or in population problem-gambling rates, which have remained broadly stable for roughly two decades, it is important that there is a range of robust protections on advertising in place to ensure that it does not exacerbate harm.

The rules on gambling advertising, which operators must follow, are set by the Committee of Advertising Practice. A wide range of provisions in the codes are specifically designed to protect children and vulnerable adults. Compliance with these codes is a condition of Gambling Commission licences, and the commission can—and does—take action on adverts that are in breach of the codes.

Furthermore, the industry code for socially responsible advertising includes a television watershed on all gambling products apart from bingo and lotteries. Children’s exposure to gambling advertising on broadcast television is declining. The industry’s “whistle-to-whistle” ban has cut the number of pre-9pm betting adverts to around a quarter of their previous level, and further cut the average number of sports betting adverts seen by children to 0.3 per week.

[Baroness Armstrong of Hill Top (Lab)]

I just want to clarify something: I should have said “pre-watershed”. I was in too much of a hurry to keep within five minutes; I am sorry.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the noble Baroness, and I hope what I have said is none the less helpful in relation to the points she raised in her speech, which I welcome.

We recognise that there is good evidence to show that gambling advertising can have a disproportionate impact on those who are already experiencing problems with their gambling, and that some aggressive marketing practices are particularly associated with harm. The noble Lord, Lord Trevethin and Oaksey, mentioned a study which reflects that.

Evidence from the Gambling Commission shows that 35% of problem gamblers received incentives of offers to gamble daily, compared with 4% of non-problem gamblers. Furthermore, while 10% of gamblers with a “non-problem” or “low-risk” score—according to the problem gambling severity index—were influenced to gamble more by direct marketing, this rose to 41% among those with a “moderate risk” or “problem gambler” score.

We also recognise that content often used in gambling advertising can inappropriately appeal to children and young people—the right reverend Prelate the Bishop of Derby raised such an instance. That is why we have introduced a suite of measures to further prevent potentially harmful impacts of advertising, specifically for children. Since October 2022, advertising rules have been strengthened to prohibit content that downplays the risk or overstates the skill involved in betting. The rules also ban content that is likely to be of strong appeal to children. In that regard, I will raise with officials the frog-based example that the right reverend Prelate gave. As a result of this ban, top-flight footballers or celebrities popular with children are banned from being in gambling adverts. In line with existing gambling advertising rules, the Premier League’s decision to ban front-of-shirt sponsorship by gambling firms will commence by the end of the 2025-26 season, breaking the direct association between gambling brands and popular players.

The noble Lord, Lord Trevethin and Oaksey, suggested that there should be warnings to potential players on gambling adverts. Robust Advertising Standards Authority rules prevent content and adverts that, for instance, promote gambling as a route to financial success, and adverts on television must direct people to available support services. We are also working with the Department of Health and Social Care and the Gambling Commission to develop independent information campaigns about the risks of gambling—taking that out of the hands of the industry.

[Lord Foster of Bath (LD)]

I apologise for interrupting the Minister, but I find it difficult that he stands at the Dispatch Box and talks about all these rules, when I gave a specific example of a Paddy Power advertisement—although it is not called an advertisement—that simply had a large photograph of the Liverpool manager, Jürgen Klopp. Does he believe that was a correct thing for Paddy Power to do, or should it have been banned?

[Lord Parkinson of Whitley Bay (Con)]

Well, as with the case that the right reverend Prelate raised, I will take that up with officials. I was spelling out some of the actions—some of which are still to come in. As I said, the Premier League rules will come in by the end of the forthcoming season. I am sure the noble Lord will reflect that some of the work has been done and some is coming shortly, but I will raise the case he mentions with the team at the department.

As we set out in our White Paper, we are also working closely with the Gambling Commission to take targeted action on advertising to ban harmful practices and ensure that it remains socially responsible, wherever it appears. The commission has recently consulted on new rules to give consumers more control over the direct gambling marketing that they wish to receive, and on strengthened protections to ensure that free bets and bonuses are constructed in a way that does not encourage excessive or harmful gambling. The commission will set out its responses to these consultations soon. Together, these measures will empower customers and prohibit harmful marketing practices, to prevent the risk of gambling harms.

The noble Baroness, Lady Bennett of Manor Castle, referred to the powers available to local authorities. As she reflected, these vary from local authority to local authority, but, as we heard in the debate, the metro mayors in London and Manchester are using the powers that are available to them.

There is no single intervention that provides the answer to effectively preventing gambling-related harm. That is why we have taken a holistic approach that includes action on products and protections for players. We recently announced the introduction of stake limits for online slot games, where we have seen evidence of elevated levels of harmful gambling, and are pursuing broader protections, such as financial risk checks that will require online operators to identify and take action in relation to customers who are financially vulnerable. That will prevent runaway losses, which we are still seeing happen too often. The Government are clear that effective and innovative collaboration to get the right mixture of interventions for the population as a whole—as well as those with specific needs or vulnerabilities—is required to tackle gambling harm.

A key part of that approach is the Government’s decision to introduce a statutory levy, which I know has been a long-standing priority for the noble Lord, Lord Foster, and which the noble Lord, Lord Bassam, and others raised. In his opening remarks, the noble Lord, Lord Foster, dwelt on the importance of evidence. Perhaps I should end my remarks by acknowledging that further work is needed to build the evidence base to ensure that policy and regulation are able to deal with emerging issues.

In response to the contribution from the noble Lord, Lord Bassam, I make clear that developing quality evidence is a priority for our statutory levy. Through the levy, increased and ring-fenced funding will be directed towards high-quality, independent research into gambling and gambling-related harms, including in relation to advertising. We will continue to monitor the evidence base and, if new evidence suggests that we need to go further, we will look at this again. The Government will also respond to their bespoke consultation on the levy and will set out their final decisions very soon.

I thank the noble Lord, Lord Foster of Bath, for tabling today’s debate and all those who have spoken in it. I am certain that we will return to this topic again before long.