Gambling Harm (Social and Economic Impact of the Gambling Industry Committee Report)

Lord Smith of Hindhead Excerpts

Wednesday 27th April 2022 Grand Committee

[Lord Smith of Hindhead (Con)]

My Lords, it was an honour to serve on the Select Committee under the chairmanship of the noble Lord, Lord Grade. I thank him for his leadership, and I thank the staff who supported the committee and our witnesses, as well as colleagues who together produced a report which I believe is both balanced and considered. I declare my interests as a member of this committee and my other related interests as set out in the register.

Having become so used in recent months to a speaking time of just three minutes—and, in one case, two—I hardly knew what to do with myself when I learned that today we would have an advisory speaking time of five to six minutes. However, as the subject of gambling is so wide-ranging, I shall endeavour to stick to just a couple of topics.

As we are aware, a great deal has changed since 2005 in the way we gamble, socialise and spend our leisure time and money. The internet is the biggest catalyst in this change, with 24-hour access to online gambling in our pockets. The review our committee undertook was overdue and I hope our findings and recommendations will provide a measured framework for responsible and safe gambling while, at the same time, protecting the individual rights of those who enjoy gambling. As we said in our report, our aim was to make recommendations which

“will make gambling safer for all, but no less enjoyable for those who do participate safely.”

I hope our recommendation that triennial reviews should be reinstated will be given serious consideration. This is an efficient way to officially and systematically evaluate the gambling industry, the social landscape and key players such as the Gambling Commission, GambleAware and others. Can my noble friend the Minister clarify this point?

I clearly recall the look of panic, followed by temporary blankness, when I asked the then CEO of GambleAware what GambleAware does. The additional funding it had recently received seemed to have increased the size of its offices and admin staff, yet it was still unable to confirm its funding of, for example, GamCare, one of the excellent providers of help for people with gambling problems, for more than 12 months.

My question is whether GambleAware remains fit for purpose—whatever that purpose is—and, importantly, whether the funding of GambleAware is to be removed from voluntary industry donations and provided instead by the new, often mentioned levy. If that is the case, I ask my noble friend the Minister whether the Government are considering any alternatives to a statutory levy to fund research, education and treatment. Critically, do the Government recognise the disproportionate impact that a one-size-fits-all rate might have on land-based operators, which carry fixed costs and support large numbers of local jobs in their venues, compared with online operators?

If a statutory levy is being considered, will it apply to the National Lottery? Your Lordships will be aware that I have often set out my views on how the National Lottery has moved so far away from its original objectives that it is really now a gambling operator, albeit one governed by a separate Act. With the number of draw-based players declining and more of Camelot’s record profits being made via scratchcards and online instant win games, that would appear to be the case.

However, the mixed message continues when one considers that a person who plays just the six draw-based games each week, excluding scratchcards and online games, would spend £1,092 each year—and would be considered as being socially responsible as well as supporting good causes and, of course, Team GB. By contrast, a person who wishes to spend the same amount of money in a casino or betting on sports should, in the view of some experts, have to undergo an affordability check and might be regarded by others as some sort of social degenerate.

Camelot has recently been fined £3.15 million for mistakenly telling 20,000 players that they did not have winning tickets and sending marketing material to 65,400 people with potential gambling addictions. Noble Lords will not be surprised that I welcomed the Gambling Commission’s decision not to renew Camelot’s licence to operate the National Lottery beyond 2024, but I urge the new operator not to fall into the same trap as the Ontario Teachers’ Pension Plan did of “Dream Big Play Small”.

Finally, I hope that a happier balance between those who enjoy gambling and those who are rightly concerned about gambling harm can be achieved. Significant strides have already been taken by the industry to make gambling safer. Yes, it is an important industry in terms of tax yield and employment but a shared view that more can always be done without spoiling the enjoyment for the overwhelming majority who enjoy the occasional flutter is a target we should all collectively hope to achieve.