Statutory Gambling Levy

Debate between Scott Benton and Paul Blomfield

Tuesday 7th June 2022 Westminster Hall

[Scott Benton (Blackpool South) (Con)]

It is a pleasure to speak under your chairmanship, Mr Betts. I refer hon. Members to my entry in the Register of Members’ Financial Interests and thank the hon. Member for Swansea East (Carolyn Harris) for securing the debate.

With the current review of the Gambling Act 2005 drawing to its long-awaited close—hopefully; we have been here many times before over the last 18 months—this is certainly an opportune moment to be debating this subject. Far too often, emotion, instead of evidence, drives the debate about betting and gaming in this country. Nowhere is that felt more keenly than in the discussion about how problem gambling is tackled through research, education and treatment—RET.

Some 22.5 million British adults enjoy a bet every single month. According to the independent regulator, the rates of problem gambling in the UK are falling, having reduced to 0.2% now from 0.6% just 18 months ago. Although of course one problem gambler is one too many, those figures are positive compared with other European countries. The rate is 2.4% in Italy, 1.4% in Norway and 1.3% in France. One could therefore conclude that the regulated market in Britain is relatively successful in keeping rates of problem gambling fairly low.

For the past few decades, the industry has rightly shouldered the financial responsibility for that work by paying a voluntary levy to fund independent charities tackling problem gambling. Despite that, anti-gambling campaigners are demanding a new, statutory levy on the industry—a tax by another name—to fund RET. That poses one obvious question: would funds generated through a statutory levy and given to the Department of Health and Social Care really make a tangible difference to the delivery of RET and to problem gambling in the UK? The clear answer is no.

The current system is making good progress, and in any event, a blanket levy would not raise materially more money for RET than is raised at present, but it would disproportionately hammer casinos and bingo halls, where just a 1% hit on turnover equates to a 10% hit on profit. That could put many bingo halls, casinos and other land-based operators in places such as Blackpool out of business, costing thousands of jobs and the Exchequer vital revenue, as I alluded to previously.

[Paul Blomfield]

The hon. Gentleman says that the current system is making good progress, but the latest National Gambling Treatment Service statistics from GambleAware show that 49% of users have a risk level that indicates that they remain at risk at the end of their treatment. Does he think that that is good progress?

[Scott Benton]

There is clearly more work that we can do in this area, but it would help if the NHS had a long-term strategy for dealing with the issue, which it lacks at present. I will say more on that point in a few moments.

Under current arrangements, all companies regulated by the Gambling Commission are expected to make a voluntary contribution of 0.1% of turnover. To put that in context, in 2019-20 that figure was £10 million. Most of the funding goes to GambleAware, which is a totally independent charity. The industry has no say whatever on how that money is spent. In its five-year strategy published last year, the charity says that it expects to see that income increase to £39 million by the year ending 2024. As the hon. Member for Swansea East alluded to, the four largest gaming companies—Entain, William Hill, Flutter and Bet365—have agreed to increase their contributions to 1% of turnover. That is an additional £100 million over a four-year period to tackle the issue, with all of that funding going towards tackling and preventing the causes of problem gambling.

As I said in response to the intervention from the hon. Member for Sheffield Central (Paul Blomfield), the NHS still does not have a long-term strategy to tackle problem gambling. It was only in 2019 that the Department of Health announced it would open 15 new NHS clinics for addicts. Despite that, only five are open so far, with three more supposedly coming online later this year. Meanwhile, it is the industry and charities that have spent the last two decades trying to tackle the issue. Currently, charities use about 160 locations for face-to-face counselling services—part of an already mature network of clinics, treatment centres and outreach programmes that are making a real difference right now.

A statutory levy would risk charities’ existing funding models by taking cash out of their coffers and putting it into the NHS, which, sadly, is not yet set up to delivering those services.