Gambling (Licensing and Advertising) Bill

Lord Stevenson of Balmacara Excerpts

Tuesday 18th March 2014 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, we are slightly surprised to be revisiting this issue today. Although it is very important, it was discussed in some detail on Report, so we have to be impressed by the way the noble Lord, Lord Browne of Belmont, has convinced the Public Bill Office that it was right that he should be allowed to do so. He is clearly someone we shall have to listen to in the future if we want to have our evil way. However, as he has just said, there was a fair amount of confusion at the time, with letters from the Minister crossing with interviews and public statements by the Secretary of State. It is obviously important therefore to use this opportunity to try to tease out the issues that are in play here, and in particular what dates we are actually talking about.

The fact that the issue is coming back to the House at this stage says something important about our concerns about the way our “gambling culture” is developing and its potential to impoverish and cause irreparable social damage to the most vulnerable people in the country. The noble Baroness, Lady Howe, raised the question of why the Bill does not deal with the ills caused by gambling in her intervention on the first amendment, and she has just spoken again on the same point. I agree with her that this is something that we might have to look at again when we consider the Consumer Rights Bill, which is due to come to this House in June.

While gambling may not bring down dilettante Dukes, it certainly does affect others. Your Lordships’ House heard in Committee from several noble Lords who had been most grievously affected in this regard. The noble Lord, Lord Browne, sponsored a meeting at which ordinary people who had been addicted to gambling spoke movingly about their experiences and the need for the Government to take action in regard to their concerns. As we have heard, there was a report on the specific point about the watershed for gambling advertising and the spread of gambling more generally, including advertising for bingo, mentioned by my noble friend Lady Jones. I understand the position to be as follows, and I would be grateful if the Minister, when he comes to respond, could confirm it.

The relaxation of restrictions on gambling advertising that followed the implementation of the Gambling Act 2005 has led to a significantly greater volume of gambling advertising on TV and in other media. In addition, the gambling industry has been innovative and the existing voluntary codes that govern gambling advertising are now applied across a much changed gambling landscape. These technological developments have led to intense competition in remote gambling advertising which has coincided with an increase in complaints and concerns, as I have already mentioned. On Report, the Minister explained that the Government have been monitoring the impact of these developments and considering whether the current controls remain adequate across remote gambling advertising and other forms of online gaming activity, including online bingo.

The Minister went on to say that the Government have asked four bodies to do further work. First, the Remote Gambling Association will co-ordinate an industry-led review of the voluntary gambling codes and will come 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 by the Responsible Gambling Trust this month, and will examine the available evidence on gambling advertising and its relationship with problem gambling. We are told that the committees will publish their findings on completion of this work, which could lead to changes in the principal codes controlling gambling advertising, this time by autumn. Thirdly, the Advertising Standards Authority will undertake a review of enforcement action under 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, we are told, will communicate the outcome by autumn 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. Although this work is principally focused on ensuring that free bets and bonus offers are marketed in a fair and open way in the gambling industry, it will cover a wider range. I note that the last item had no date specified for its completion, and would be grateful if the Minister could specify in his reply when he expects the Gambling Commission to report on its review.

This is a complicated field, with lots of cross-cutting and interesting work going on, and the timings are slightly out of sync. It is therefore right that the noble Lord should press the Minister to come up with a clear statement about where exactly these timings are. When the Minister does that, perhaps he can also comment on a point that he made in the previous debate, when he said:

“The terms of reference for the reviews are currently being defined and will be made public by the spring”.

A shaft of sunlight just illuminated our gloomy surroundings here, so I gather that spring is on the way. But when exactly is spring, and could we please have these statements so that we can look at them?

On the question of dates and times, the Minister said:

“Any statutory regulations would be preceded by consultation”,

which is good. He also said that the Government,

“will consider the findings of the review before determining what further action may be necessary”—

I would be surprised if they did not—and,

“will confirm their position by the end of the year”,

which is perhaps another variation on “autumn” and “towards Christmas”. He said that he,

“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”.—[Official Report, 4/3/14; col. 1297.]

The trope that is coming through is “by the end of the year”. We assume that is this year, although it would be helpful if we could have some clarity on that.

The noble Baroness, Lady Jones of Whitchurch, in her response to the debate on Report, welcomed the change in mood and position from the Secretary of State and the Minister over the past couple of months, welcomed the detail that the Minister had spelt out and, with some reservations, welcomed the commitments that the Minister gave in that debate. However, when she withdrew her amendment, she warned the Minister that,

“we will pursue the Government as regards the work that is taking place over the coming months and try to hold them to account for the commitments that they have given”.—[Official Report, 4/3/14; col.1298.]

He has been warned. I can sympathise with the wish of the noble Lord, Lord Browne, to see this all tightened up and nailed down. I hope the Minister can repeat the commitments he gave on Report and confirm that his understanding is that we will have action on this troubling issue by the end of this year, 2014, at the latest.

As this is the last time I shall speak on this Bill, I take the opportunity to thank the Minister and the noble Baroness, Lady Jolly, for the constructive and positive way in which we have been able to make improvements to this Bill during its time in your Lordships’ House. We also got a great deal of support from the Bill team. I thank them for their support, which has been of great assistance.

As I said at Second Reading, I suspect that this is not the last time we will need to turn our attention to gambling, not least because the gambling industry is changing so rapidly, but also because of growing concerns about problem gambling, which I have already mentioned. In addition, I think the noble Baroness, Lady Heyhoe Flint, and the noble Lord, Lord Moynihan, who were both in their places a moment ago, made the point that we need to get a proper law in this country about match fixing. The Bills that we are talking about are about preventing problems in gambling and do not really go to the heart of one of the issues that is growing in importance across the country. There is evidence that match fixing is going on with a view to gain, which is something that we must act on. The laws that we currently have do not deal with this problem. We were not able to make changes in this rather tightly drawn Bill, but I think and hope that the arguments have been heard. If we do come back to it, it will at least be on the basis of a very much better understanding of the issues, which we have gained in our very good debates in recent months.

[Lord Gardiner of Kimble]

My Lords, I am grateful to the noble Lord, Lord Browne, for discussing his amendment with me earlier today, which I certainly found helpful. As the noble Lord said, this amendment seeks to delay the commencement of the repeal of Section 331 of the Gambling Act 2005 until the Government have reported to Parliament on the outcome of ongoing reviews into gambling.

First, I will be very clear about this. Clause 2 of the Bill is not about liberalisation of remote gambling advertising. It is a regulatory measure, and I will explain to your Lordships why I believe it is very necessary. The effect of Clause 2 is that, for the first time, remote gambling operators based in EEA or white-list states will be able to advertise and offer remote gambling to British consumers only if they are regulated by the Gambling Commission. At present, remote gambling operators based in EEA or white-list countries may advertise and offer remote gambling to British consumers without the need for a remote operating licence from the Gambling Commission, regardless of the quality of their home regulation.

The noble Lord, Lord Browne, has expressed concern about a potential increase in the overall volume of gambling advertising as a result of the Bill. I reassure noble Lords that the existing television scheduling restrictions will significantly limit the potential for any increase in the volume of advertising. As a consequence of the Bill, all gambling advertising will be subject to the regulatory rigour of the Gambling Commission and the Advertising Standards Authority, ensuring consistent standards across the piece. This is a significant development that will extend regulatory control over the type of advertising that may be shown in Great Britain.

As a result of the Bill, new gambling operators that wish to advertise in Britain will need to comply with the advertising codes of practice. These codes put in place strict controls in relation to gambling advertising and children: for example, advertisements must not appeal to, or include, children and young people and they must not glamorise gambling or suggest it as a solution to financial concerns. Advertisements that breach the code have to be amended or withdrawn. In addition, the Gambling Commission’s code of practice provides that operators must adhere to the advertising codes and ensure that all gambling advertising is undertaken in a socially responsible manner. Failure to take account of this can be used as evidence in criminal or civil proceedings, and may be taken into account by the commission in a review of the operator’s licence.

Indeed, earlier this month, the Advertising Standards Authority used powers under the advertising codes to take interim action against an operator following an unprecedented number of complaints. In this case, the Advertising Standards Authority judged that the advertisement may have been seriously prejudicial to the general public on the ground of the likely serious offence it may have caused. However, because the operator concerned is based outside Great Britain, the Advertising Standards Authority could apply its ruling only to national print media and not the operator’s website. Once operators are licensed under the new arrangements, regulatory action could be taken by the Gambling Commission.

To postpone commencement of the Bill until the end of this year, when the Government will be reporting on the outcome of ongoing advertising work, would delay the considerable benefits to consumers that the Bill will bring. It would undermine the achievement of the consumer protection purposes of the Bill, not just in respect of advertising but more widely. The noble Lords, Lord Browne and Lord Stevenson, and the noble Baroness, Lady Howe, raised, quite rightly, the aspect of vulnerable people. The Bill requires operators to comply with Gambling Commission licence conditions specifically protecting children and vulnerable adults; for example, in relation to self-exclusion and other requirements to support consumers who experience problems. Having looked at this very thoroughly since my meeting with the noble Lord this morning, on reflection I believe that delay is simply not in the interests of British-based consumers.

I made it clear on Report, in reply to the amendment in the name of the noble Baroness, Lady Jones, about the Government’s intent, that the review of the existing advertising arrangements is under way. The noble Lord, Lord Stevenson, referred rightly to the changing landscape that we have seen following the Gambling Act 2005. I confirm that the findings will be available in the autumn. This work will be taken forward by the Gambling Commission, the Advertising Standards Authority, the committees of advertising practice and the Remote Gambling Association. Clearly, it would be wrong to prejudge the outcome of the reviews, but I can assure noble Lords that they will be comprehensive and will seek to determine what changes might be necessary to ensure adequate protection.