Fixed Odds Betting Terminals

Patricia Gibson Excerpts

Tuesday 26th April 2016 Westminster Hall

[Jim Shannon]

I seek a lesser number in the shops, and fewer shops as well. We agree on many things, but we do not agree on this topic. The opinion that I express will win: ComRes did a survey of MPs seeking their opinion, and of the MPs who responded, seven out of 10 want FOBTs regulated. They want a reduction in the number of machines and shops. It was quite clear. If a private Member’s Bill is brought before the House—some in this Chamber are of a mind to do that—we can tackle the problem.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Does the hon. Gentleman agree that reducing the maximum stake to £2, which is opposed by betting shops, would be a good way forward?

[Jim Shannon]

I thank the hon. Lady for that; it is one of my concluding points. I know that other Members are of the same opinion. Yes, the maximum stake should be lowered; then we could manage the issue, so that people are not deprived.

The regulation of FOBTs is out of kilter, as I have said. The only material restriction is the four machines per shop. We have seen an increase nationally in the number of betting shops in town centres, and last year the Government stepped in and imposed a £50 staking threshold on fixed odds betting terminals, above which players are required to identify themselves to staff or sign up for a loyalty card. The objective of this measure is to help players stay in control. I suggest that that has not happened. The measure is non-evidence-based and the Department for Culture, Media and Sport failed to quantify what impact it would have on players other than the £17 million reduction—1%—in bookmaker revenue from the machines. Secondary research based on the British gambling prevalence survey 2010 estimates that up to 40% of B2 revenue comes from at-risk and pathologically addicted players—higher than all other combined gambling activities—so the Government predicted very little impact. There is also evidence that bookmakers are using the player registration as a mechanism to market FOBTs further.

An evaluation of the DCMS assessment of the £50 measure so far, carried out by Landman Economics, highlighted issues with the quality of the data provided by the bookmakers; it also noted that DCMS could not assess changes in staking, mentioned the absence of a pilot scheme so that the measure could be evaluated better, and noted that the evaluation omitted key questions that it is important to consider when looking at the success or failure of the £50 regulations. For example, the question why fixed odds betting terminal machine players might wish to remain anonymous is not discussed. Despite the Government measure, players are still able to stake up to £100 per spin, and it appears that bookmakers are using the change as an opportunity to further market products to vulnerable gamblers. Even £50 is still materially out of kilter in the normal gambling world.

--- Later in debate ---

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

It is a pleasure to serve under your chairmanship, Sir Alan. I congratulate the hon. Member for Strangford (Jim Shannon) on securing this debate. We have witnessed today the common agreement among most in this Chamber that there is a particular problem with fixed odds betting terminals, which leads those who are vulnerable and seduced by the promise of easy money into all sorts of difficulty.

In my constituency and the neighbouring constituency, there are 135 FOBTs in bookmakers, where gamblers racked up losses of more than £5 million in the year to 2015. Those are two constituencies with some of the deepest pockets of poverty and deprivation in the entire United Kingdom, and they host 37 betting shops. That spend of more than £5 million is set to increase, and campaigners have expressed deep concern.

This problem affects some of the most vulnerable people in communities right across Scotland and the United Kingdom. People who struggle with gambling are drawn in by the glamour, the glitter and the promise of easy wins for the hollow thrill that these machines offer. They promise so much and deliver so little. We have heard today that vulnerable players are gambling as much as £100 in 20 seconds. Who can afford to sustain such losses without facing huge difficulties? It is no wonder that FOBTs are called the crack cocaine of the gambling world.

So far, the approach of the gambling industry has been about self-exclusion, but we know that that does not work. Research has shown there were around 22,000 self-exclusions in 2012-13, but more than two thirds of those who self-excluded cancelled the exclusion after the minimum period expired. As the hon. Member for Congleton (Fiona Bruce) has pointed out, this is an issue of social justice. It is clear that the particular danger of these machines is that so much money can be lost so quickly. We cannot continue to stand aside and watch this problem develop. The casino industry has said in evidence to the Scottish Parliament that these machines are a hard form of gambling and are completely unsuitable, as we have heard today, for the unsupervised environment of a bookmakers shop.

We know that more research needs to be done to inform policy. We need play to be safe and enjoyable. The Responsible Gambling Trust has said there should be further studies so that we can target problem gamblers using informed research. It is time the Government looked at the recommendations from the Responsible Gambling Trust on these machines.

We have heard today about inconvenient truths, and I would like to point out one such truth. We have all seen areas—usually ones with socially disadvantaged communities—that have bookie after bookie on each street corner. Despite what the hon. Member for Tewkesbury (Mr Robertson) said, 55 of the most deprived boroughs in the United Kingdom have more than twice as many betting shops as those in the most affluent areas. That is an inconvenient truth. Too many local authorities feel powerless to stop that clustering, and the Scottish Government have taken action to tackle the issue through planning policy.

The betting industry has claimed that reducing the maximum stake from £100 to £2 would put betting shops at risk. It is a little known fact that like the hon. Member for St Helens North (Conor McGinn), I, too, once worked for betting shops—for two high street betting shops to put myself through university, working in just about every bookmakers in and around Glasgow. I can tell hon. Members categorically that there were no FOBTs at that time and that profitability for bookmakers was never an issue. There are now about four terminals in each shop.

I want to make a very important point. There has been an attempt to make political points in this debate, which is utterly inappropriate, but they have been raised and therefore must be answered. It was suggested that the Scottish National party did not table any amendments to the Scotland Bill with regard to these machines. I can tell the hon. Member for Hyndburn (Graham Jones), who made that point, that that is utterly untrue. Perhaps he was so busy working with his Tory allies against more powers for Scotland that he missed it. The SNP tabled an amendment on 4 November 2015 to clause 45 on page 47 and it was not accepted. It is true that some power has been devolved under the Scotland Act 2016, but what the Scottish Government are not able to do with the powers is retrospectively re-examine the licences for the number of betting terminals that are already available. The way that the powers have been devolved will create confusion because there will, in effect, be a two-tier system.

We know that these machines are an issue. We know that we need to tackle it, and I ask the Minister—if one thing comes out of today’s debate—to seriously consider making the maximum stake £2 so that people can gamble with much more safety and responsibility, and so that they are less open to being preyed upon by these machines and mistaken about the riches that they offer.