Gambling-Related Harm

Debate between Ronnie Cowan and Martin Docherty-Hughes

Tuesday 19th March 2019 Westminster Hall

[Ronnie Cowan]

I agree with that point and I hope to cover it later on, when I will look at the educational support for kids and the possible grooming of children, normalising gambling as part of their lives.

On my last point, will the Minister consider ways whereby coroners can ensure that data around suicide can be captured, so that accurate figures can be maintained?

Jack Ritchie was 24 and from Sheffield. He was a history graduate who taught English in Kenya and Vietnam. He began gambling at 17 and would visit betting shops during his school lunch break. By 18, he admitted that he had a gambling problem and that he had lost thousands of pounds, including £5,000 given to him by his grandmother. After another gambling loss, he committed suicide in 2017, while he was in Vietnam. Jack’s mother, Liz Ritchie, compared gambling addiction to heroin dependency. The harm is real and it is growing, while the research and support is massively underfunded.

I commend the work undertaken by Henrietta Bowden-Jones at her clinic in Fulham. There are plans to open a similar clinic in Leeds, and hopefully more in Scotland and Wales. That must happen, but the funding model requires scrutiny. Currently, the industry pays a voluntary levy that raises £10 million to £14 million a year. That money is used to fund support for problematic gamblers, and campaigns to educate people and hopefully reduce harm.

That voluntary contribution of £14 million must be measured against the gambling companies’ profits. In November 2018, William Hill issued a profit warning, saying that it expected yearly profits to be in the range of £225 million to £245 million—in 2017, company profits were £291 million—whereas 888 Holdings reported pre-tax profits of £83 million on revenue of £541 million in March 2019. Paddy Power Betfair reported pre-tax profits of £219 million in 2018 on revenue of £1.87 billion, and bet365 posted an operating profit of £660 million on revenue of £2.86 billion.

The total gross gambling yield for Great Britain between April 2017 and March 2018 was £14.4 billion, which was a 4.5% increase from the previous year. The annual sum that gambling firms win from their customers has risen by 65% since the Gambling Act 2005. It is against those figures that we have to consider the voluntary levy of £10 million to £14 million. A statutory levy of 1% would guarantee £140 million a year and that sort of money, in the right hands, could do some serious good.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

I congratulate my hon. Friend on securing this debate. Does he agree that, given the numbers he has cited, it is nigh impossible for local authorities anywhere in the United Kingdom of Great Britain and Northern Ireland to implement their statements while they are dealing with a marketplace in which the money created for the businesses fundamentally outweighs anything that they can do locally through a simple planning statement?

[Ronnie Cowan]

I wholeheartedly agree. I am not going to war with the gambling industry here, but we have to look at the figures, and the money that companies have to spend in order to promote gambling far outweighs anything that we have got at local council level to counteract that and the damage that has been done.

In addition, because the levy is voluntary, the amount raised can vary from year to year, and therefore budgeting for long-term treatment is extremely precarious. I ask the Minister to review how gambling-related harm reduction is funded and to investigate more effective methods.

Let me be clear: I am not asking for financial recompense from gambling companies just to improve their public image. A sponsorship deal here and a charitable donation there are no more than fig leaves to hide the companies’ own embarrassment—and they should be embarrassed. How can a family be recompensed for the loss of their son, or a child who has lost their father? I am not asking for token gestures; I am asking gambling companies to stop doing the damage in the first place. Rather than merely asking punters to “gamble responsibly”, they should run their organisations responsibly. If the Gambling Commission cannot act, and if self-regulation is not adequate, the UK Government should step in and legislate to ensure responsible working practices are in place. Will the Minister review the role of the Gambling Commission and its funding model?

While we talk about responsible working practices, companies are gathering data pertaining to the habits of online gamblers. Astonishingly, they are closing down the accounts of people who are successful and winning—even those winning small amounts—while targeting and encouraging vulnerable gamblers who are losing to continue gambling. This callous disregard for the welfare of their customers is tantamount to gross negligence.

Another outcome of the increased use of technology is that the division between gambling and gaming has been blurred by the introduction of “loot boxes”. That did not happen by accident: adults designed and wrote the software; adults considered the returns; and adults are grooming children to be the next generation of gamblers.