Football Index Collapse

Debate between Nigel Huddleston and Ronnie Cowan

Tuesday 7th June 2022 Westminster Hall

[Nigel Huddleston]

I was going to come on to that point. Unfortunately, that ask is not possible, for a couple of reasons. The FCA is required by law to pass revenue from fines to the Treasury, net of enforcement costs, and the Treasury is required to place that into the Consolidated Fund, to be used for Government Departments on important public services. That is the law. The Gambling Commission fines are used for socially responsible purposes, usually for specific projects to reduce gambling harms. I completely understand the intend behind the request, but I am afraid that it is not possible.

Going back to the changes made as a result of the recommendation, the Gambling Commission and the FCA are also signing a strengthened memorandum of understanding to improve co-operation, and the FCA has nominated an executive director to oversee its relationship with the commission. Therefore, some changes have already happened and others are happening now.

Even though the independent report has been published, other processes are ongoing. First, administration proceedings continue, which may result in some money being refunded to customers. Secondly, the Gambling Commission referred BetIndex to the Insolvency Service and asked it to consider whether the actions of BetIndex’s directors prior to administration breached insolvency or fraud laws.

[Ronnie Cowan]

I have listened to what the Minister has said about compensation. Under section 123 of the Gambling Act 2005, the DCMS Secretary can impose a levy, at the level they determine, for any purpose whatsoever.

[Nigel Huddleston]

With regard to compensation, as I have said, there are procedures that we cannot move from. It is also very clear that we strongly sympathise—everybody strongly sympathises. As a constituency MP, I also have constituents who have been impacted by the collapse and who have lost money. We have heard today anger and frustration about the genuine hardship—both financial and, of course, mental—caused by the collapse. However, we do not think it would be appropriate for the Government to use public funds to cover losses to individuals resulting from the collapse of a gambling company. Consumers staking money on gambling is not the same as their placing money into other things, such as savings products. Furthermore, the Gambling Commission does not have any statutory powers that would enable it to offer redress for losses suffered as the result of a gambling operator collapsing.

I know that I need to leave time for the hon. Member for Blaydon to respond to the debate, so I will briefly refer to a couple of other points that hon. Members have made. On the Insolvency Service investigation, BetIndex entered into administration on 26 March 2021 and administrators are required to report to the Insolvency Service on company directors’ conduct. Following information received from the administrators and the Gambling Commission, the Insolvency Service has confirmed that it is investigating the conduct of BetIndex’s directors.

The hon. Member for Blaydon asked for a meeting with the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Croydon South. I will pass that request on, rather than make a promise on his behalf, but I am sure that he will receive that request with respect. I will also ask him to respond to a couple of other items that she asked about. Please be in no doubt of the seriousness with which the Government take all the matters that have been highlighted today, and the gambling review will indeed be announced in the coming weeks.

Statutory Gambling Levy

Debate between Nigel Huddleston and Ronnie Cowan

Tuesday 7th June 2022 Westminster Hall

[Nigel Huddleston]

I can say no more than that we will be publishing in the coming weeks. I am afraid that my hon. Friend the Member for Croydon South is currently detained elsewhere, so the coming weeks is all I can say today.

[Ronnie Cowan]

I asked the Minister a question about section 123 of the Gambling Act. I do not understand why it has not been enacted.

[Nigel Huddleston]

The answer lies in the evidence given in the debate today. As I have said, we are looking at the Gambling Act review and considering the options and the arguments made today, but there is not 100% support for that at the moment. We committed to looking at that as part of the review, and I am afraid the hon. Gentleman will have to wait for the report to come out in the coming weeks.

I thank right hon. and hon. Members for their contributions. I will make sure that the Minister responsible gets a full report of today’s debate.

Gambling and Lotteries

Debate between Nigel Huddleston and Ronnie Cowan

Tuesday 8th December 2020 Commons Chamber

[Nigel Huddleston]

I thank the Chair of the Select Committee on Digital, Culture, Media and Sport for, as always, valuable comments. On using technology intelligently, I absolutely agree with him—it is vital that we do so to identify problem gambling and issues of affordability, and that that forms part of the future-proofing of the sector.

The loot-box issue is being addressed. We have issued a call for evidence, which concluded on 22 November, and we will introduce recommendations shortly. On the lottery changes, as I say, we have had conversations with key stakeholders. We want to move as soon as possible. The target date of 1 October is the latest date for changes. We want to bring the online changes forward as soon as possible, but there are notifications, technology changes and logistical considerations, as well as training considerations. It is not the kind of thing that can occur overnight, but we have had productive conversations with the operators to make sure that we can implement the measures as soon as possible.

[Ronnie Cowan (Inverclyde) (SNP) [V]]

I thank the Minister for prior sight of the statement. I welcome the overall messages in it, as they touch on many of the issues that have blighted the industry and caused great harm to many people for far too long. There is a great deal to discuss, and I shall keep a beady eye on the process and progress of the review.

In the time allotted to me, may I thank the Minister for making it clear that the evidence-led inquiry will include those who have been harmed and the families of those who have lost someone to suicide as a result of gambling addiction? Lived experience is crucial to inform the review. However, I am concerned that the Minister has caveated his concerns about advertising with the financial difficulties faced by sports organisations and broadcasters. The reduction of harm must be front and centre in the review, and must not be undermined by the eye-watering financial demands of premier-league football teams.

On the national lottery, there is no excuse for delaying the enforcement of the increased age limitation offline for 10 months. May I ask that the timescale is revisited or at least justified? I did not read anything in the statement about the voluntary levy. We need a statutory levy that funds research, education and support. That money should be paid to the UK and devolved Parliaments before being channelled to the appropriate service providers. Research into gambling harm must not be funded by voluntary contributions from the industry that causes the harm.

Finally, many people, including members of the all-party parliamentary group on gambling-related harm, will scrutinise the outcome of the review. May I offer a friendly warning to the Minister? We will not be fobbed off with a partial review, and we will not accept second-best.

[Nigel Huddleston]

I can confirm that the experience of those with lived experience will form part of the review. In fact, the Secretary of State and I have met many victims and their families, and we will continue to do so. On sport, if there is evidence of harm from sponsorship and advertising, we will act. On the other considerations that the hon. Gentleman mentioned, I can assure him that if people have evidence, for example, that a levy is an alternative model, we would welcome those submissions in the review. I welcome the scrutiny that he and others will give to the review as it progresses.