Financial Risk Checks for Gambling

Matt Hancock Excerpts

Monday 26th February 2024 Westminster Hall

[Matt Hancock (West Suffolk) (Ind)]

It is a pleasure to be able to speak in this debate, and I am grateful to the hon. Member for Neath (Christina Rees) for introducing it. I am even more grateful to the more than 100,000 people who signed the petition; it reached 100,000 people calling for the debate in only 27 days. Some 1,200 of the signatures are from Newmarket in my constituency—my constituency is called West Suffolk, but the vast majority of the signatures are from Newmarket. Being here feels like the start of a horse race as I am surrounded by so many colleagues and it is so busy in here today. I have been contacted by other Members, including two Ministers, who wanted to speak in this debate but cannot, including my right hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), the former Chancellor. This issue is huge and I do not want to leave the Minister with the impression that affordability checks are a side issue; they are absolutely central to the future of horseracing. We are making a mistake, so we must stop and start again, and I will set out why.

I bow to no one in caring about and paying regard to the problems of gambling harms. I have seen them for myself; I have spoken to those who have lost children to gambling. As the Culture Secretary, I introduced the limits on fixed-odds betting terminals, or FOBTs, which were far below the recommended rate. I overruled the official advice to bring in the £2 limit, with the support of the hon. Member for Swansea East (Carolyn Harris) and my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith). We worked together on that.

I care deeply about gambling harms and as both a former Culture Secretary and a former Health Secretary, I understand them. However, these proposals, as they are being introduced, will make the gambling harms worse. The PwC report published recently showed that the amount staked by UK online gamblers on the unregulated market in 2020 had doubled to £2.8 billion in the previous one to two years. In December 2022, more than 250,000 people visited unregulated black market sites, compared with only 80,000 during the same month the previous year. That has a huge impact on horseracing, which I will come on to, but also on gambling-related harm. Online casinos—games of chance rather than games of skill—are a serious problem that need addressing. I would recommend that the limit of £5 being proposed by some is reduced to £2. We should be extremely tough on games of chance, which are programmed algorithmically to ensure that people lose money. I do not think anybody in this debate would oppose the introduction of measures to resist those types of addictions, for addictions they are.

As I say, I bow to nobody in my support for measures to tackle problem gambling, but I am afraid to say that, having examined the evidence, I am convinced that introducing these measures—not just as they are being proposed, but as they are actually being brought in—is increasing gambling harms and not decreasing them. We should not fall for the old adage of, “We have a problem, and we must do something; this is something, therefore we must do it.” I am afraid to say that the current proposals will make problems worse rather than reducing them.

Many of the offshore gambling firms explicitly target those signed up to the GAMSTOP service and there is a grim irony that the regulator and the Government are, unfortunately, making the problem worse.

A couple of Members have said that the checks have already been introduced by the industry; the hon. Member for Neath said that they had already been introduced “voluntarily”. I am afraid to say that I do not think that is true. The gambling industry, for which I have absolutely no regard, is introducing checks now in the shadow of expected future regulation, because it knows about the Gambling Commission—indeed, it is regulated by the Gambling Commission. These things are not being introduced “voluntarily”; they are being brought in because the gambling companies think that further regulation is coming down the track. We are already seeing the negative impact in the uptake of black market offshore gambling, as I have already said, and we are already seeing the impact on the horseracing industry.

I am incredibly lucky to represent Newmarket. Horseracing is the UK’s second largest sport, with 5 million racegoers annually, generating over £4 billion for the economy and untold soft power. In Newmarket, 7,000 people are employed in or around horseracing, which puts a quarter of a billion pounds into the local economy. In addition to all of that, it creates the joy that so many of us have spoken about.

We know that 26% of bettors have already experienced an affordability check, ahead of the proposals officially coming in. We have seen that the betting turnover on racing fell by £900 million in 2022-23. The financial impact on the horseracing industry is already happening. Prize money is going up in the rest of the world but is incredibly tight in the United Kingdom. The impact is biggest on the small racecourses, but there is even an impact on Newmarket, which hosts the two finest racecourses in the world.

[Sir Bill Wiggin]

One of the two!

[Matt Hancock]

I certainly will not have that challenged.

[Sir Bill Wiggin]

The industry estimates that this will cost it £50 million. Does the right hon. Member agree that if we can separate the challenges of problem gambling from the joy and importance of horseracing, which employs 80,000 people, perhaps progress is possible? However, at the moment that is not clear.

[Matt Hancock]

Absolutely. Horseracing already has its own legislative framework; it has had it since Churchill introduced the Tote. There is already in law a definition of and a separation of horseracing. I recommend that the Government separate games of chance, in which there is no skill and there are guaranteed losses, from horseracing, which is one of this country’s finest achievements and brings joy to so many.

Let me turn to “frictionless”, which we have heard a lot about. I was thrilled when the Minister said at the Dispatch Box that checks would be frictionless; he has said it here and he said it in the White Paper. Here we come to something of a constitutional point, if I may say so. The Gambling Commission has interpreted the Minister saying checks will be frictionless as meaning “frictionless for the vast majority”, which is different. These checks, if they are to happen at all, should be frictionless. The Minister has committed to that and it is Government policy, yet we have a regulator wrongly misinterpreting “frictionless” as “frictionless for the vast majority”. It is a distinct problem. Also, if checks are frictionless, they have to be based on data that people have already consented to make publicly available. If somebody looks at one’s bank account details, there has to be friction, because they will need permission to look at those details, so there is already a problem with implementing frictionless checks.

The hon. Member for Swansea East made the point that it is difficult to see why people would worry about these checks or why they would go to unregulated online sites. There are two responses to that. The first is that people fear the Government looking into their financial affairs. The second is a practical point: it is happening. That is how people are responding to these proposals. I know it is happening among my constituents, because they tell me on the doorsteps. They are changing the way they place bets, because of fears about what the Government are going to look at. We need to recognise reality in this place. We cannot just wish away people’s behavioural response, which is making the tackling of problem gambling worse rather than better.

Any jockey knows when a race is going wrong. I surely do. With this one, I say to the Minister that it is time to return to the stalls and start again.

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[Paul Blomfield]

I am very happy to get on with it. The point I was seeking to make is that gambling addiction is a health issue. The NHS will very shortly be opening a gambling harms clinic in my constituency. It will join a network of 15 across the country that are tackling the serious problem of gambling addiction. Hon. Members have asked, “What requires an intervention? What is the difference between gambling and going out and spending £150 on a meal, shopping and other leisure activities?”, butI do not see the NHS treating those activities as a serious health issue, as it does with gambling addiction.

[Matt Hancock]

Will the hon. Gentleman give way? I am a former Health Secretary.

[Paul Blomfield]

I know that the right hon. Member is a former Health Secretary.

[Matt Hancock]

I was the Secretary of State who introduced those gambling clinics.

[Paul Blomfield]

I know.

[Matt Hancock]

There was one beforehand. Will the hon. Gentleman address the question of the extent to which we know that those gambling harms are related to betting on horseracing—as opposed to these games of chance, which are so aggressive and have algorithms designed to promote addiction?

[Paul Blomfield]

I am happy to have taken that intervention, because I was not seeking to make that point. I was recognising the way in which horseracing is being used as a wedge issue to tackle a different problem, as has been echoed by the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and my hon. Friend the Member for Swansea East (Carolyn Harris). There is a distinction, and we should not let horseracing be used to undermine the affordability checks that are needed in a different context.

The point I was making is that if this is a health issue, we need to have a prevention strategy, just as we do with other health problems. I commend the Government for the prevention strategy that they have developed with the gambling White Paper. Affordability checks are an important part of that strategy, but it is regrettable that the debate around them is generating more heat than light, as it has done today.

I can understand why, beyond racing, the gambling industry is keen to avoid checks. As my hon. Friend the Member for Swansea East pointed out, Gambling Commission research using the “Patterns of Play” data confirms that the most profitable 1% of accounts make 70.4% of gross gambling yield. Those are disproportionate profits derived from small numbers of players, who in many cases are gambling much more than they can afford to lose. Those people need to be protected. We know that harm can happen at relatively low levels of spend, so it is important that affordability checks be set low enough to prevent harm.

I understand the fears behind the petition. It is important that we spend time, as other colleagues have done, underlining how unobtrusive checks can be and, I am confident, will be. Affordability checks are nothing new, and contrary to suggestions from the industry, background checks on financial vulnerability could be frictionless, making use of already available data—data that we should remember is already used by the industry itself to monitor accounts and, in some cases, withhold winnings from players to regulate their losses. The data is there, and the industry is willing to use it in one context. Why not in this context, too?

We know that in the case of enhanced checks, only 0.3% of account holders would be expected to provide additional information—I think that point was made earlier. That is a tiny number in relation to the benefit that could be achieved through introducing the checks. The vast majority of checks can be done passively, using information that is in the public domain or required for registering an account. My hon. Friend the Member for Neath made the same point in her speech. It is also important that checks be done by independent, reputable third parties regulated by the FCA. We should bear that in mind, too.

I want to make a brief comment on the black market argument that has started to come up. This is the last refuge of rogues, really. When the tobacco industry had run out of every other argument to stop regulation, it said, “But what about the black market? Don’t do anything to us: it will force people to turn into black market smokers”—and they did not. We saw a successful public health strategy on tobacco. Payday lenders made the same argument when affordability checks were introduced in their sector, and we have not seen a significant movement from payday lenders to black market loan sharks.

Claims about the potential growth of the black market following more stringent regulations have been successfully challenged, including by the Gambling Commission, whose powers to address the issue of illegal sites will be further strengthened by provisions in the Criminal Justice Bill. I understand the difficulties in regulating the online world. We face rogue operators across the online world, but if we are prepared to tackle them in other spheres, why not in online gambling?

Affordability checks will play an important role. They must be set independently rather than by the industry, and set at a level that will protect those who need them most. I recognise that many people enjoy betting safely and without harm, and we can and should ensure that affordability checks are frictionless except in the most extreme circumstances. We cannot lose sight of the fact that affordability checks are about protecting people from harm and ensuring that the gambling industry is regulated in the right way.

I note the points made about things that have already been happening. Those things are happening because the industry knows that change is coming. If the industry had been left to its own devices, we would never have seen those sorts of measures.

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[Conor McGinn (St Helens North) (Ind)]

It is a pleasure to serve under your chairmanship, Sir Edward. I was worried that I was going to be declared a non-runner, but I am glad to get under starter’s orders, having listened to numerous colleagues.

Let me say at the outset that those of us with an interest in this topic, from whatever perspective—and, indeed, those of us with a wider interest in sport—are very fortunate that we have, in the Minister and the shadow Minister, two people who are engaged, open to discussion and involved in every aspect of their brief. In fact, I saw the Minister yesterday, and I thought to myself, “He is the great white hope for the Conservative party.” He appeared on our television screens and received rapturous applause, foot-stomping and acclamation on Merseyside. I am sure that it was coincidental that it was when he was at Wembley as a member of the presentation party presenting Jürgen Klopp and Virgil van Dijk with the league cup.

[Sir George Howarth in the Chair]

I draw attention to my declaration in the Register of Members’ Financial Interests. I always say at this point that, having owned horses and gambled on horses, I have given a lot more to racing and betting than it will ever give me, but I am happy to draw—

[Matt Hancock]

The hon. Gentleman reminds me to draw the House’s attention to my entry in the register. I am lucky to have been strongly supported by those in Newmarket.

[Conor McGinn]

I am delighted to have given the right hon. Gentleman that opportunity.

I want to be emphatic about this so that we are very clear: I am here to speak on behalf of Haydock Park racecourse in my constituency in St Helens; I am here to speak up for the 100,000 people who signed this petition—decent, honourable, good taxpayers in this country who have a concern about this issue and a love for horseracing; and I am here to say emphatically that the whole of the horseracing industry, which, if I might cheekily say so, is not widely known for its unanimity on issues, speaks with one voice about its concerns on this issue. I am co-chair of the all-party parliamentary group with the hon. Member for Tewkesbury (Mr Robertson), and this is an interest and an issue that unites people in all parties and across the House.

I want to step back a little and look at the bigger issues. Many of the points that I wish to make have been made already. I furiously agree with the hon. Member for Shipley (Philip Davies) on this—as I do, I fear, on too many issues—and he made a lot of the points that I wish to make.

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[George Freeman]

I am grateful to the hon. Lady, who makes a good point. They are beautiful and what a joy it is to watch them exercising, whether in Malton in Yorkshire or wherever else around the country. The sight of horses exercising in preparation for racing is part of the rural economy.

Secondly, I want to make the point that horseracing, as an activity and an industry, is a jewel in the crown of our global soft power. The truth is that, having grown up in Newmarket as a child, I have watched as that town and its horseracing have become very reliant—over-reliant, I would suggest—on a few very wealthy families. Those families have done an amazing service to our sport, but we have to make sure that we are not reliant on a very small number of individuals to maintain the viability of an entire industry. That point puts this debate in a wider context.

Crucially, I also want to highlight that there is a very serious problem in our society of addiction to gambling, particularly online gambling, and there is a growing body of evidence—I say this as the former Minister for Life Sciences and as somebody who has had a career in medical research—that the causes of such addictive behaviour and cycles of addiction are not simply based on repeat activity. They are a symptom of much deeper underlying causes, which are often genetic and nearly always neurological. There are a whole series of conditions that drive that underlying cycle of addictive behaviour. It is not that someone has a bet on a horse, then a second bet and it is entirely addictive. Indeed, in my own experience, betting on horses is quite the opposite; I have very seldom made much money doing it and I very seldom carry on doing it with that in mind. No, that is not what drives the addictive behaviour; it is underpinning neuroscience and wider conditions. As a society we really need to take those factors very seriously.

[Matt Hancock]

Is there not the more specific distinction, which the hon. Gentleman almost drew out, that the placing of a bet and then waiting many minutes as a minimum for a result is neurologically distinct from a bet that gives an immediate hit? Where the repeat bet would be based on the physiological immediacy of the previous result, horseracing breaks that and therefore has a different neurological impact in relation to addiction. Would it therefore not be right in law and in policy to completely separate the proposals for online games of chance from the wonderful sport of horseracing? It would be easy to do in law—let’s just split the two.

[George Freeman]

The right hon. Gentleman anticipates the logic of the argument I was building towards—he is exactly right. That is why if we are seriously thinking of tackling this curse of addictive online gambling, surely we should be looking at a whole range of other behaviours and products. The proposal seems to be a disproportionate way of tackling a real problem, if indeed that is what it is. Others have mentioned the logical consistency of extending these checks on alcohol, tobacco, car hire purchases and—dare I say it—mortgages, and all sorts of things that we might say people cannot afford. I worry that this could be the thin end of a very big wedge in which the state decides that it is its job not to regulate properly, but to start asking whether people can afford to do something. That is an Orwellian dystopia that I do not want to live in.

The truth is we have to think properly about the sustainable resilience of racing. I absolutely echo the comments of my hon. Friend the Member for Tewkesbury (Mr Robertson): prize money is falling fast, costs have risen fast and are stubbornly high, and competition is eating our lunch. If we look to Irish and French racing, we see that we are haemorrhaging from a serious industry. This proposal would not make a small reform to a healthy industry—the industry is struggling and it needs our help, but I am worried that the law of unintended consequences will make the situation worse.

I want to make a point about technology. It has often been asserted that we do not have the technology to do these checks properly. That is right at the moment, but would it not be an amazing thing if we decided to use technology properly—we are already an AI powerhouse—to start to analyse addictive behaviour and look at the trades on digital betting that indicate such behaviour? Over 70 markers of harmful gambling have been identified in studies, 16 of which really drive this activity. I suggest there might be an opportunity for us to use technology better to tackle those behaviours online that drive the problem we are trying to solve.

I echo the comments of the right hon. Member for West Suffolk on track racing, which I would go so far as to say is one of the best ways to introduce people to responsible gambling. I remember taking my two children to the 2000 Guineas and giving them £5 each, and they decided to put it together on an each-way bet. It was a smart move; they are clever children. Even more clever, my son decided to take my daughter’s advice, because she knows about horses, and he looked at the odds, because he knows about numbers, and they put £5 each way on Galileo Gold, who stormed to victory. They learned a lot that day about gambling. They saw people who had drunk too much and who were losing too much. They didn’t. I took the money and gave it to them. They discovered a lot, and on-track gambling is a fabulous way of getting people to realise that most of the decisions we take in life are a gamble one way or another, and it is how we deal with them that really matters.

I am not here in any way for the health of the gambling industry. I am interested in the health of UK racing and the real identification of the at-risk addiction that we see cursing so much of our society, in particular those games of chance that have driven such addiction. I simply say to the Minister that I know he has a difficult job on his hands. I have sat at that Dispatch Box with a packed Westminster Hall calling for reform. The Prime Minister, in North Yorkshire, understands the importance of the industry. The Secretary of State’s constituency is next to Newmarket—in fact, she has the breeder of Galileo Gold in her constituency—and understands it. It is not too late to change tact and come back with a serious package of measures designed for the twin problems of the sustainability of racing’s finances and the genuine opportunity for this country to lead in harnessing technology and smart regulation for the tackling of gambling addiction. If not, I urge the Minister to look seriously at the net loss provisions, which are too low. When an industry warns that something will cost it £50 million, we have a duty to listen.

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[Ronnie Cowan]

I absolutely take on board what the hon. Gentleman says. I apologise if I worded that wrongly; I was talking about the sessions that we had at the APPG for gambling-related harm. I appreciate that, as was pointed out earlier, many people have been touched by the curse of gambling addiction.

The point is that it is understandable that so many people have raced to sign e-petition 649894, which calls on the UK Government not to implement the proposed financial risk checks for online gambling. The gambling industry has led and paid for this lobbying and has been hellbent on spreading disinformation that is designed to create uncertainty and raise concerns among people who enjoy the occasional gamble. I understand the punters’ point of view. They feel the fear behind this, because it is a message that they have been fed.

The truth about affordability checks is more complicated, however. I am not a prohibitionist. How many times have I had to say that? I am not trying to ban gambling, but I do want to create a safe environment for it. It may come as a surprise that affordability checks were not the invention of the APPG for gambling-related harm. This is not some mendacious ploy that the group is using; the idea was mooted in 2019 by Tom Watson, when I believe he was still the MP for West Bromwich East. Industry leader Richard Flint, who was at Sky Bet, supported Mr Watson by saying that too many people were losing money that they could not afford online. We need to work together with the industry and the Government to limit that harm.

I think that limits on spend, rather than on stakes, are the right way to go, and those limits should be based on affordability. Richard Flint acknowledged that such limits could lead to a drop in operator revenue. He clarified:

“There will be some online firms in the short term that…make less money as a consequence”.

Getting straight to the point, he added:

“but then…that spend shouldn’t happen anyway.”

That is a point that the Jockey Club should have considered when its chief executive officer launched this petition. It has cited a potential loss of £5 million on the horseracing betting levy, which according to its own board’s annual report was worth £100 million. But what price a life? What price the number of people who have been driven to complete suicide?

I return to the need for affordability checks. A year later, at the 2020 Lords Committee, the UK’s biggest operators—the chief executive officers of the big five—spoke enthusiastically about the need for affordability checks as a key mechanism to reduce harm. An industry CEO said that

“the way to go is affordability and to ensure that, when people come to our sites, they can only afford to lose or bet an amount that, quite frankly, they can afford and were comfortable with.”

So what is new? What is new is that, since the White Paper, the Government and the Gambling Commission have proposed threshold figures for the checks. Affordability is no longer an abstract concept; it is tied to precise thresholds.

The industry does not like the fact that the White Paper has called its bluff, so it is kicking up a storm. It is clear that those who might be categorised as the pro-gambling lobby and those such as myself, who could be described as the safer gambling lobby, agree that if we are to create a safe environment, affordability is an area that needs tightening up. I wonder whether that was explained to everyone who signed the petition.

The petition states:

“The proposed checks could see bettors having to prove they can afford their hobby if they sustain losses as low as £1.37 per day.”

That figure has been scoffed at a few times in this debate, but it is £500 a year. It may mean nothing to us as MPs on 86 grand a year, but that £500 a year could be the difference for some poor people who are trying to put money in the meter or food on the table. What we are trying to do is to stop them getting to the point at which they lose that money in the first place. Please do not belittle that. If the checks say people can afford it, they can afford it. We are trying to help those at risk. Surely all gamblers can see that, because they understand risk.

The UK Government have already said that

“the proposed checks are only on the very highest spending online customers”.

The Gambling Commission estimates that

“approximately 20% of customer accounts will meet the threshold required for a financial vulnerability check”.

The next line of the petition is about the black market. The Gambling Commission has already reported to us that the size of the online black market has been overstated by the industry and must be kept in proportion. It follows that if we want to prevent the growth of the black market, the solution is regulation to prevent harm that leads to addiction. It will eliminate demand for a black market, not cause it. Harm prevention will mean fewer addicts, fewer self-exclusions and fewer attempts to circumvent the regulated market in the first place.

The key is in the last line of the petition:

“We are concerned there will also be a negative impact on British horseracing’s finances due to a reduction in betting turnover and resulting fall in Levy yield.”

That is a Trojan horse if ever I have seen one.

[Matt Hancock]

I have been listening with increasing disappointment to the tone that the hon. Member has taken. Given the importance of tackling problem gambling, does he recognise, like the 7,000 people who live in my constituency, the importance of horseracing? Does he recognise that horseracing betting has an equally low rate of associated problem gambling as betting on the national lottery? The national lottery is carved out of this proposal. Should not horseracing betting also be carved out, so we can all concentrate on tackling gambling harms, exactly as the hon. Member would like us to?

[Ronnie Cowan]

I was bringing attention to the message that has clearly been given out by the UK Government. The Government are keen to ensure that the measures such as the proposed changes do not adversely affect racing or interrupt the customer journey. They also cannot push away high net worth individuals such as the owners and trainers who invest in the sport. I would suggest that it is not for me to say this; the Government are all over it. The Government understand the difference between online gambling, casino gambling and horseracing.

The key to the problem is that people are spending more than they can afford. As a result, some are dying. That is the human cost, and that cost is completely unacceptable.

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[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stuart Andrew)]

I thank the hon. Member for Neath (Christina Rees) for tabling this important debate, as well as everyone who signed the petition. My hon. Friend the Member for Tewkesbury (Mr Robertson) said that I always turn up to these events; I must confess I did not know that I had a choice. I may have made a different decision if I knew that, but there we are.

My right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) quite rightly mentioned the book that he showed me. It looked like a very extensive book. I have not had chance to read it all yet, but I am sure that “Strongholds of Satan” by William Morgan will be valuable as I further my education in this whole exciting field of policy. In her opening comments, the hon. Member for Barnsley East (Stephanie Peacock) outlined the varying points that came up in the debate and the various views from stakeholders, whichever side of the debate they might be on. I am grateful for all the comments. The debate has been interesting and thought-provoking, and it is good to hear those different perspectives. That is why I always try to take the time to meet and engage with people and, crucially, listen to the points put forward to me.

As some have mentioned, we are walking a fine line and need to get it right to help those who may be entering the risk of gambling harm while ensuring that those who want to continue to gamble safely can do so. I want to recognise the concerns that many have had with the proposed system of checks for the highest-spending online customers to help identify that harm. Those concerns have been raised by colleagues, in the media and certainly with me over the past few months. I believe that the proposals for financial risk checks will represent a significant improvement for both businesses and customers, compared with the current situation.

A recent GambleAware study showed that almost three in five adults support the introduction of the checks. None the less, we and the Gambling Commission have listened and we want to get it right. We are clear that the risk checks should not overregulate the gambling sector, should not unduly disrupt the millions of people who gamble without suffering harm, and should not cause unnecessary damage to sectors that rely on betting, particularly horseracing. We and the Gambling Commission both recognise that it is not our job to tell people how to spend their money. As outlined in the gambling White Paper, we want to balance that freedom with the necessary action to tackle the devastating consequences that harmful gambling can have on individuals and communities.

We know that operators are operating onerous, ad hoc and inconsistent so-called affordability checks on a number of customers, often without being clear on why the checks are happening and normally requiring customers to provide data manually. The proposed system will be a significant improvement by having clear and proportionate rules to which all operators are held, allowing for financial data to be shared seamlessly with operators instead of burdening customers with information requests. The Gambling Commission’s consultation on these checks closed in October. I know from our discussions that it has given careful consideration to the nearly 2,000 responses that it has received, and it has been working very closely with relevant stakeholders, including my Department, industry representatives, the Information Commissioner’s Office, the financial services sector and others, to refine the proposals.

Understanding consumer perspective is vital for the commission. That is why it has a programme of research on the consumer voice, which is an ongoing piece of research using qualitative and quantitative methods to gather consumer perspectives, including on the consultation proposals relating to financial risk. That research has helped inform its thinking and will be published by the commission alongside the consultation response. I am glad that the points raised today reflect that some of the issues facing punters are not down to just these checks—other issues have quite rightly been raised.

Following the publication of a blog by the commission on 22 February, I am pleased to be able to provide colleagues with an update on these checks. Firstly, the Gambling Commission has confirmed that it will be proceeding with the proposal for financial risk checks. That includes the frictionless, light-touch financial vulnerability checks and the enhanced ones. However, following feedback through the consultation, the commission has confirmed that it will not require gambling businesses to consider an individual’s personal details, such as their postcode or job title, as part of the checks. I know that was a key concern for those who signed the petition, and I hope that demonstrates that the commission is carefully listening to the concerns as it finalises how the checks will work.

To ease the introduction of those checks, as we have heard they will initially come into force at a higher threshold for a short period, before reverting to a lower threshold later in the year. We expect the lower threshold to be closely aligned with that proposed in the White Paper, which will enable a smoother implementation for the small number of affected consumers. The checks will not be intrusive, and will use publicly available data—as has already been said.

The commission will require the industry to introduce these frictionless, light-touch checks in two stages; that is intended to happen over the course of this summer. Enhanced financial risk assessments will also be implemented for the important protections they can offer consumers who may be at financial risk, and to ensure that assessing financial risk can be done in a more frictionless manner than is currently possible. The Gambling Commission will therefore conduct a pilot and data collection period. That will involve the commission working with the credit reference agencies and a selection of gambling businesses to ensure that the process of assessment is as effective and streamlined as possible. The pilot will run for a minimum of four months, during which time the commission will consider all issues that arise. The commission is clear that this process will help to refine the final requirements and models for data sharing, and help to ensure that the intentions and commitments in the White Paper are fulfilled.

I am sure everybody agrees it is important that we do not skip ahead to full implementation before getting the details right. Indeed, I know that many right hon. and hon. Members, including my hon. Friend the Member for Shipley (Philip Davies), have made suggestions to me and to the commission. All of us want to find a solution that actively protects those most at risk of harm. The commission is actively considering all the proposals—including my hon. Friend’s—and I can confirm that many of the ideas that have been raised will be explored during the pilot stage, including looking at whether CATO or SCOR data is being used. By doing so, the commission can ensure that all the decisions that will be made are based on the evidence of what is working.

[Matt Hancock]

Will that include carving out horseracing in the same way that the national lottery has been carved out? Both of those have the lowest impact in terms of gambling harm and it would be inappropriate to treat the two differently.

[Stuart Andrew]

I have heard the national lottery mentioned a few times. Yes, it is unique—it is under its own separate legislative framework—but under the fourth licence conditions, player protection requirements will be increased and there will be conditions on payments for support, research, education and treatment.

I have also heard arguments for a carve-out for horseracing. I acknowledge that greater gambling harm occurs in online casinos, but we know that those who experience gambling harm use multiple products, and some have been using horseracing products. I have heard harrowing stories of people who have made losses on horseracing products alone.