Loot Boxes

Lord Foster of Bath Excerpts

Thursday 13th October 2022 Lords Chamber

Moved by

[Lord Foster of Bath]

That this House takes note of the response by His Majesty’s Government to the consultation on loot boxes.

[Lord Foster of Bath (LD)]

My Lords, I begin by welcoming the Minister to his new post. I know from experience that DCMS is an exciting department in which to be involved, although one that is sadly undervalued by Governments of all persuasions. I refer to my interest as the chairman of Peers for Gambling Reform, an organisation whose 150 members—Peers from all sides of this House—have been pressing for the implementation of the recommendations from your Lordships’ Select Committee on gambling, on which I had the opportunity to serve. Sadly, much time has passed since the publication of its report and since the Government’s own consultation on gambling legislation was concluded. A much-anticipated White Paper was approved twice by the previous Cabinet, yet has still not seen the light of day. With at least one gambling-related suicide every single day, we simply cannot wait any longer. Could the Minister tell us when the White Paper will be published, and will he agree to meet with members of PGR as soon as possible?

Noble Lords may wonder why I have begun with reference to gambling reform when this debate is actually about loot boxes. I believe there is a very clear link and, as I will argue, that loot boxes should be treated as gambling and regulated accordingly, with a change to the current legal definition of gambling. Your Lordships’ committee recommended this, as did the House of Commons DCMS Committee. The Conservative manifesto for the 2019 election also made a link between gambling and loot boxes. It made a commitment to undertake a review of the Gambling Act 2005,

“with a particular focus on tackling issues around loot boxes”.

While we await the gambling White Paper, we at least now have the response to the separate consultation on loot boxes. I was, frankly, shocked by its contents. It said that the evidence submitted to the consultation showed a link between loot boxes and gambling harms and to wider mental health and financial harms. But it went on to say that the Government do not intend to amend gambling regulation or to introduce any other statutory consumer protections to cover loot boxes. Frankly, that makes no sense. How can a Government that have stressed that they would take an evidence-based approach accept there is a link between loot boxes and harm and yet not legislate to protect people from this harm?

A report commissioned last year by GambleAware stated that links between loot box purchasing and problem gambling

“have been robustly verified in around a dozen studies”,

and argued that loot boxes were “psychologically akin to gambling”. The Select Committee heard similarly overwhelming evidence. Dr David Zendle, of the University of York, for example, has done extensive research in this field. His findings, presented to the committee, found that in every one of his studies spending money on loot boxes is linked to problem gambling, and that the more money individuals spend on loot boxes, the more severe their problem gambling. He told the committee that the link between problem gambling and loot boxes is extraordinarily robust. We also heard that research around the world, from Canada to Finland, has replicated those findings.

Perhaps the most worrying findings were in relation to young people. In the UK, we currently have around 60,000 young people aged 11 to 16 who are deemed to be gambling addicts, with a further 85,000 deemed to be at risk of becoming so. Rates of harmful gambling among 17 to 20 year-olds are increasing threefold. We should be particularly concerned that the research by Dr Zendle and others shows that the observed links between loot box spending and problem gambling were much stronger in adolescents than in adults. According to some research, young people who spend money on loot boxes are more than 10 times as likely to be problem gamblers than those who do not.

Three years ago, the Children’s Commissioner’s report, Gaming the System, also expressed concern about the impact of loot boxes on young people and, like the Select Committees in both Houses, recommended the regulation of loot boxes as gambling. More recently, GambleAware pointed out that, without action, loot boxes—used by 40% of children who play video games—will continue to normalise gambling-like activities with all the well-established consequences.

I have been careful to refer to a link between loot boxes and problem gambling rather than a causal relationship between them. The more money an individual spends on loot boxes, the more likely they are to suffer gambling harm, but I acknowledge that establishing a causative relationship is much harder. However, this effect shows very clearly that one of two things is happening: in one situation, loot boxes are causing gambling problems; in the other, the companies that sell loot boxes are profiting inordinately from children and vulnerable individuals who suffer gambling harms. Such individuals commonly spend thousands of pounds on loot boxes. Either outcome is a cause for concern. So I do not believe that the absence of definitive proof of a causative link justifies the Government’s response, which is, in essence, to do nothing except encourage further research and hope that the industry will do something.

Of course I welcome further research, so can the Minister provide an update on the video games research framework? I am a fan of the UK’s games industry. It contributes significantly to the success of our creative industries, and with developments in virtual and augmented reality will be even more important. It is a responsible industry but, with significant earnings to be made from loot boxes, asking it to take significant steps to reduce their well-documented harms is asking too much of it.

Waiting for enhanced industry-led protections was exactly the same argument that allowed the worst practices of the gambling industry to go unchecked for many years. We were told that the Government did not need to regulate fixed-odds betting terminals because the industry would self-regulate. It did not. We were told that there was no need to bring in a statutory levy to fund research, education and treatment because the industry would provide sufficient through the voluntary levy. It has not. We were told that the industry would cut down on the advertising that is constantly marketed to young people and recovering gamblers. Instead it introduced, for football, a measly whistle-to-whistle ban that does not even begin to deal with advertising hoardings, front-of-shirt sponsorship or programme ads. There has been no let-up in non-football-linked TV ads, nor the constant bombardment of online marketing.

To be told once again that we can once trust the industry to self-regulate a product that directly funds those companies is surely not the right approach to take. A business model that relies on the fiscal success of harmful products must be regulated by the Government, not by the companies themselves. If the Government will not change, can the Minister at least provide details on progress made by the technical working group set up to develop those industry-led solutions?

Even the type of industry measures that the Government are suggesting seem likely to have little effect—for example, enhanced parental controls. As one commentator pointed out, that is like allowing children to gamble in a betting shop as long as a parent is present. More worryingly, as GambleAware-commissioned research points out, advocating enhanced parental controls as a key part of the solution shows how little the Government appreciate how difficult it now is for parents to understand and adequately protect their children from gambling harms, and, given the rapid changes to online activities, how lacking in confidence parents are even about talking to their children about these issues. Surely, given all the evidence, we should expect the Government to adopt a public health approach based on prevention.

In his previous role as Parliamentary Under-Secretary of State in the Department for Health and Social Care, where I believe he did an excellent job, the Minister was a powerful advocate of such a public health approach. I am grateful to the Library for providing numerous quotes from him showing how on several occasions he praised

“public health interventions and a strong regulatory framework”—[Official Report, 3/12/21; col. 1610.]

in relation to other harms such as smoking, obesity and mental health conditions. I remind him that when in March this year, during an Oral Question, I asked him about adopting a public health approach towards gambling he said:

“I know we take very seriously that this is a public health issue that we must tackle in a holistic way. We are looking at how we can allocate funding in the NHS long-term plan to tackle gambling addiction and to ensure that we focus more on prevention rather than simply dealing with people once they have a problem.”—[Official Report, 28/3/2022; col. 1262.)


Does the Minister really believe that the Government’s response to their own inquiry into loot boxes is evidence of the adoption of a public health approach? I certainly do not.

I remind him that as part of the review his own department commissioned Loot Boxes and Digital Gaming: A Rapid Evidence Assessment, a report whose results it sat on for ages. I suspect that was because it showed a

“stable and consistent association between loot box use and problem gambling”.

Despite that, there has been no action by the Government. Leave it to the industry and to parents, and encourage more research, but do not expect the Government to act.

In moving that the House takes note of the response by His Majesty’s Government to the consultation on loot boxes, I simply say that I was dismayed by it. I hope the Government will think again and instead take note of the recommendations of the Select Committees in both Houses, the Children’s Commissioner, GambleAware, numerous academics and many others who believe that loot boxes should be regulated as gambling. I beg to move.

--- Later in debate ---

[Lord Foster of Bath (LD)]

My Lords, I thank the Minister for his reply to the debate and his clarity about being willing to meet, and I hope he will meet with Peers for Gambling Reform in the near future. I thank all noble Lords who have taken part in what I believe is a very important debate, not least because of the issues that have been raised about harm currently being done to children and vulnerable people. I believe that further action that is way beyond the sort of promises we heard from the Minister must be taken, although I welcome the work that is being done. I believe—and I think the Minister has heard this—that far more needs to be done.

I think we have been clear, and I hope the Minister will understand, that we are huge fans of the games industry in this country. Before this debate, I was in a meeting of the Communications and Digital Committee, hearing from one of the leading experts in the world of digital games industry, who rightly pointed out that they are leading the way in new developments in VR and AR that are not only going to help their industry but areas such as health and education also—these are very important. As I hope the Minister has heard, we are clear that where they have a significant financial vested interest in the issue of loot boxes, it is wrong to expect them to take responsibility for dealing with the concerns that we have.

While we have been debating, reports have come out that No. 10 is debating a major U-turn on the mini-Budget. I had hoped that this debate would have led to a smaller U-turn on the issue of loot boxes. Sadly, we have not had that, but I am grateful for what the Minister said and the offers that he made. We look forward to further discussions on these issues. I beg to move.

Motion agreed.

Channel 4: Annual Report

Lord Foster of Bath Excerpts

Thursday 21st July 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is correct. The chief executive of Channel 4 received a 20% pay rise last year, taking her total salary to £1.2 million. That is twice the salary of the director-general of the BBC and more than the chief executive of ITV. Salaries are a matter for Channel 4 but I think this shows that the company is in rude health, one of the many things that make it an attractive asset to a potential buyer.

[Lord Foster of Bath (LD)]

My Lords, the Minister says that the Government are happy with the Channel 4 report, which he will know shows that Channel 4 has significantly exceeded the quotas set for it. In the unnecessary privatisation plans, the Government say they want the new owner to

“deliver outcomes in line with those we see today”.

Can the Minister explain whether those are the outcomes that the channel is actually achieving, the ones we see today, or the much less ambitious outcomes laid out in the remit?

Gambling White Paper

Lord Foster of Bath Excerpts

Wednesday 20th July 2022 Lords Chamber

Asked by

[Lord Foster of Bath]

To ask Her Majesty’s Government when they will publish the Gambling White Paper.

[Lord Foster of Bath (LD)]

In asking my question on the Order Paper, I declare my interest as the chairman of Peers for Gambling Reform.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, Ministers and officials have worked tirelessly on the Gambling Act review for 18 months. We remain committed to delivering our manifesto commitment and will publish the White Paper as soon as possible.

--- Later in debate ---

[Lord Foster of Bath (LD)]

My Lords, sadly, the Minister is back-tracking on his usual reply, which is “within weeks”. He will know that there are already one or more gambling-related suicides every single day, and that 60,000 children are already classified as gambling addicts. The consultation on measures to reduce those figures began over two and a half years ago. The resulting White Paper has been delayed five times; it has already been approved by the Cabinet on two separate occasions. Does the Minister accept that each delay is costing lives and sets more young people on the road to becoming addicts? Will he press for the rapid delivery of the White Paper, full and undiluted, as the former Gambling Minister, Chris Philp, intended?

[Lord Parkinson of Whitley Bay (Con)]

I take the opportunity to pay tribute to my honourable friend Chris Philp, who led a lot of the work on the preparation for this White Paper. There will be a new Prime Minister in place in a matter of weeks, and we want to ensure that the hard work that has gone into the review sees its speedy publication. We have not waited for the review to take action where it is needed to address the sorts of harms that the noble Lord points to. For instance, we have banned gambling on credit cards; tightened restrictions on VIP schemes; strengthened the rules for how online operators identify and interact with people at risk of harm; and updated the advertising codes of practice to make sure that content that has a strong appeal to children is banned.

Gambling: Loot Boxes

Lord Foster of Bath Excerpts

Thursday 19th May 2022 Lords Chamber

Asked by

[Lord Foster of Bath]

To ask Her Majesty’s Government what plans they have to regulate loot boxes as a form of online gambling.

[Lord Foster of Bath (LD)]

I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as chairman of Peers for Gambling Reform.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, the Government’s response to the call for evidence on loot boxes is being developed alongside our review of the Gambling Act. We received over 30,000 responses to our call for evidence and will publish the Government’s response in the coming months. It will consider a range of issues, including in relation to gambling. The gambling White Paper will be published in the coming weeks.

[Lord Foster of Bath (LD)]

I thank the Minister for that reply. He will be aware that, two years ago, the Government responded to a DCMS Committee report saying that the Gambling Act review would have

“a particular focus on tackling issues around loot boxes.”

The link between loot boxes and problem gambling has now been verified by many empirical studies. Given that 60,000 children are considered to be problem gamblers, will the Minister confirm that the much-delayed White Paper will make specific proposals, going beyond the steps recently taken by the games industry, to protect young people from the harm caused by loot boxes and other gambling-like products?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I cannot anticipate the much-anticipated White Paper, but we have certainly looked at the potential for harm to children and other vulnerable people through gambling. We looked at the issue of loot boxes separately because it is a technical and distinct area. We are very glad to have had 30,000 responses to our call for evidence. These have been considered alongside 50 submissions from academics and businesses and an independent evidence assessment of academic literature. So, we are looking at this in the detail that it deserves.

Gambling Industry: Gambling Reforms

Lord Foster of Bath Excerpts

Tuesday 17th May 2022 Lords Chamber

Asked by

[Lord Foster of Bath]

To ask Her Majesty’s Government what assessment they have made of claims by the gambling industry that their proposed gambling reforms will reduce tax revenues.

[Lord Foster of Bath (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as chairman of Peers for Gambling Reform.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, without speculating on our ongoing review, gambling duties are based on gross gambling yield. Any changes which reduced industry revenue would lower tax receipts. Conversely, changes which reduce harm could cut costs to the Government and some displaced spending would likely go to other sectors that pay tax. We will publish our White Paper in the coming weeks.

[Lord Foster of Bath (LD)]

I am grateful to the Minister for his response. I am sure he will be aware that some £5 billion of gambling companies’ annual profits tends to come from people with gambling problems or those who are in danger of having them, costing lives and increasing the cost to the NHS. Reducing gambling harm would reduce NHS costs and, with spending displaced from gambling to more labour-intensive sectors, create up to 30,000 additional jobs and increase the funding going into the Treasury coffers, as demonstrated by the NERA report. Does the Minister accept that it is possible to reduce gambling harm and have a stronger economy by doing so?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right that tackling problem gambling is good not just for the people affected by it but for the services which treat it. We are also aware that there is a black market in gambling and that problem gamblers may be liable to continue their problem gambling in that area. We are considering both these things as part of our review of the 2005 Act.

Gambling Harm (Social and Economic Impact of the Gambling Industry Committee Report)

Lord Foster of Bath Excerpts

Wednesday 27th April 2022 Grand Committee

[Lord Foster of Bath (LD)]

My Lords, I would normally begin by saying how much I enjoyed the speech of the previous speaker, but I have to say that I fundamentally disagree with quite a lot of what the noble Baroness said—I will touch on that in a few moments.

I declare my interest as the chairman of Peers for Gambling Reform, which has over 150 Members of your Lordships’ House and was established to press for the implementation of the recommendations contained in the report of the Select Committee so ably chaired by the noble Lord, Lord Grade, on which I served. I too pay tribute to the excellent clerk, Michael Collon, and his staff. The committee was concerned by some of the information that we were given very early on in our deliberations, when we heard about gambling companies making billions of pounds in profits—and about the CEO of one company getting a pay cheque of nearly £500 million, for example. At the same time, there were over one-third of a million problem gamblers —probably far more, as the noble Viscount, Lord Colville, said—with, staggeringly, 60,000 children also being problem gamblers, 2 million people affected by it and, most tragically of all, more than one gambling-related suicide every day, as the noble Lord, Lord Grade, said.

We concluded that we simply cannot continue as we are with the outdated legislation from 2005, introduced long before the advent of the smartphone. Of course, we reflect that we are no longer just talking about trips to the casino or the betting shop for a flutter on the horses because, with smartphones, everyone has a mini-casino in their pocket. The gambling on offer is largely unrestricted, with no limits on stakes or prizes and with VIP deals from gambling companies offering huge incentives for gamblers to chase their losses and ever more new gambling opportunities regularly coming online. We are bombarded by gambling adverts on TV, around football pitches, on shirts, online and often directly sent to us in emails, pop-ups and so on. This means that we and our children are constantly being exposed to advertisements and incentivised to gamble. No wonder that the noble Lord, Lord True, speaking from the Dispatch Box—although perhaps in a personal capacity—recently said that, as a sports fan, he was

“sick and tired of gambling advertising being thrust down viewers’ throats.”—[Official Report, 27/1/22; col. 446.]

As we have heard, the recommendations of the committee were wide-ranging. But central to all of them was the need to adopt a public health approach to gambling, just as we already do for policies in respect of tobacco, drugs and alcohol, as the noble Lord, Lord Layard, pointed out. This is where I fundamentally disagree with the noble Baroness, Lady Fox. For far too long there has been an assumption—which she expressed—that, if only we could identify and protect those relatively few people who are supposedly vulnerable to gambling, we need not worry about the rest. But, as illustrated and demonstrated by the excellent video made by Gambling with Lives, which supports family members of those who have committed suicide because of gambling, anyone can become addicted. The gambling companies, which, as we have heard, make a high percentage of their profits from problem gamblers, design their offerings and marketing strategies to persuade as many of us as possible to start down that road and, once on it, to continue.

Last month, in a debate on gambling advertising in your Lordships’ House, I referred to Annie Ashton’s description in the Guardian of the predatory actions of gambling companies and of how her husband Luke committed suicide after relapsing into his gambling addiction. She said:

“the pattern of his gambling was obviously harmful. He took advantage of a free bet offer, deposited money, lost money, was immediately advertised another free bet offer, and the cycle would begin again.”

Luke found that being “bombarded with ads” on his mobile

“made it a problem that became impossible to escape.”

Such examples, and there are many more, illustrate the need for a public health approach.

I am delighted that the gambling Minister Chris Philp says that he agrees, but it requires, as the noble Lord, Lord Layard, said, a co-ordinated effort between several government departments and policymakers from education to health, to DCMS and beyond, but from what I have been able to ascertain there seems to have been little involvement of the Department for Health and Social Care in developing the anticipated White Paper. When he winds up, can the Minister confirm whether that is correct and, if so, why?

The public health approach informed the committee’s recommendations. They include, as we have heard, the establishment of a gambling ombudsman and the introduction of affordability checks, to which many noble Lords have already referred. Incidentally, the Gambling Commission just announced that it is going to look at them. I am surprised that the proposals supported by Peers for Gambling Reform have attracted so much criticism from the gambling industry and the noble Baroness, Lady Fox. After all, the majority of gambling companies already do affordability checks, in one form or another. We are arguing for one that is standardised across all gambling companies and independently monitored.

We are not seeking a hard limit on what people can spend, merely a soft check to ensure that they know what they are doing, that they can afford to do it and have decided to do it. Since this is for online gambling only, it would not, as some are concerned it would, apply to on-course betting. So the noble Lord, Lord Trevethin and Oaksey, and the noble Viscount, Lord Astor, need not fear. I point out to him and to others that there is a huge difference between horseracing and online gambling. If you bet at a racecourse—he does not have one, but other people do—there is a huge time gap between placing a bet on one race and on another. In modern online gambling, the rate of play is so frenetic that you can go on and on, chasing your losses. There is a significant difference between the two.

We want a change from the current voluntary levy to a statutory one. I note, as the noble Viscount did, that the statutory levy for horseracing brings in about £80 million. It is worth reflecting that the voluntary levy for other forms of gambling on two-legged animals brings in only £20 million or less. It seems at least reasonable to get the two to be comparable. The report makes clear that this can be done immediately. We have not specified precisely how—a formula could be based on profits, fees or something else—and the point made earlier was that it could be done in such a way that it is less for land-based businesses, which often have products that are less addictive, than for online gambling.

The object is to raise enough money for research, education and treatment and to raise it compulsorily so that the industry cannot opt out abruptly. It would break the link between giving the money and deciding what should be done with it. We need independence in determining what the research, education and treatment activities should be. I believe that there is lots of support for that from all sorts of communities.

Two other reforms have been referred to: reform of online gambling, not least to introduce stake and prize limits, just as we already have for land-based gambling, and, as we discussed in that earlier debate, limitations that curb gambling marketing. Currently £1.5 billion is spent marketing these products to us, with all sorts of inducements and so on. We believe that there should be a ban on direct marketing, an end to all inducements, such as those free bets, and a phasing out of sports sponsorship. We have suggested—I again suggest that the Minister have a look at the details of this—that there are ways of finding alternative funding for sports clubs, for instance through the introduction of sports rights, which would also begin to address the concerns the noble Viscount expressed in respect of drones.

Many of the recommendations do not need primary legislation, as we have heard, and I am delighted that there has been some movement since the report came out: the banning of credit cards, tighter restrictions in some aspects of gambling advertising and, not least, the establishment of more problem gambling clinics, with more to come.

As we have also heard, some raise the concern that this will have an impact on the Treasury. I am delighted that reference has been made to the NERA report that we commissioned, which demonstrates that not only would there be a reduction in gambling harm but that at the same time there would be huge benefits to the economy, with something like 30,000 additional jobs, more money going into the Treasury and so on, and more money available for research, education and treatment.

I welcome the fact that there has been some movement, but I desperately believe that much more is needed. As has already been said, the report was introduced more than two years ago and it said it was time for action. That action is now long overdue.

Earlier, before I came here, I went to a meeting of GambleAware, which has changed dramatically in the past two or three years. Only today it published a document, and I noticed this paragraph in it:

“The ongoing impact of the pandemic, a growing cost-of-living crisis and shift to online gambling means there is a potential increased risk of people experiencing gambling harms that remains unseen until an individual reaches a crisis point. Without action now, many more people and families could suffer.”


I hope the Government will at last get on with it. Unless they do, there will be more gambling harm and more lives ruined.

British Museum: Ethiopian Sacred Altar Tablets

Lord Foster of Bath Excerpts

Wednesday 30th March 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord touches on the core sensitivity of the matter. Some of these items are considered so sacred and holy that they can be looked at only by Ethiopian Orthodox priests, which would be the case in Ethiopia as in London. That is why the British Museum is in discussion with the Church. There are other items, however, from Maqdala that can be found in the museum’s public galleries or changing displays. Together and individually, they demonstrate some of the great artistic traditions of Ethiopia, showing the breadth and explaining the diversity of the religious traditions in that country, including Christianity, Islam, Judaism and many other faiths.

[Lord Foster of Bath (LD)]

My Lords—

[Lord Boateng (Lab)]

My Lords—

[The Lord Privy Seal (Baroness Evans of Bowes Park) (Con)]

My Lords, we have time. It is the turn of the Liberal Democrats and then the Labour Benches—if they could work out which one of them is going to stand up.

[Lord Foster of Bath (LD)]

My Lords, recognising that only a handful of priests of the Ethiopian Orthodox Church live in the UK, that not even the director of the British Museum can view them and that there is, in this case, no legal impediment, would it not help the trustees of the British Museum to come to the right decision if the Government indicated their support for the return of the tabots to Ethiopia? If the Minister agrees, would he instruct the trustees of that view?

Young Audiences Content Fund: Replacement

Lord Foster of Bath Excerpts

Thursday 17th March 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, this is a three-year pilot that is about to reach the end of its three years, and it must be evaluated so that we can see whether it has been as beneficial as noble Lords anticipate that it has. The noble Baroness is right that, even with the challenges of the pandemic, the industry has reached new heights of success, seeing record production in 2021, which is testament both to the UK’s status as the best place in the world to produce television and to the hard work of everyone involved in the industry. We want to evaluate the impact of the fund so we can see how best we can support them to continue to reach even greater heights.

[Lord Foster of Bath (LD)]

My Lords, can the Government at least ensure that there is a continuation of funding until such time as the review has been carried out and a government decision is made about what is to happen in future? Will that decision bring to an end the days of the Government raiding the BBC licence fee for projects, however worthy they might be?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, it is important that this trial to test out new ways of contestable funding be evaluated before those decisions are taken.

Gambling Advertising

Lord Foster of Bath Excerpts

Tuesday 1st March 2022 Lords Chamber

Asked by

[Lord Foster of Bath]

To ask Her Majesty’s Government what assessment they have made of the link between gambling advertising and gambling-related harm.

[Lord Foster of Bath (LD)]

My Lords, I declare my interest as chairman of Peers for Gambling Reform. Since gambling advertising and gambling itself were liberalised by the Gambling Act 2005, the promotion of gambling products has grown exponentially, with an annual spend now in excess of £1.5 billion and a growing amount of that happening online. It is worth noting that one in six adults follows gambling companies on social media, as do a surprising number of children.

Also growing has been the level of public concern about gambling companies using ever more sophisticated means to attract new customers and persuade existing ones to spend more, using a range of techniques to keep customers hooked, from disguising losses as wins and celebrating near-misses, to offering so-called free money and free spins. Writing in the Guardian recently, Annie Ashton describes the predatory actions of gambling companies and how her husband Luke committed suicide after relapsing into his gambling addiction. She wrote that

“the pattern of his gambling was obviously harmful. He took advantage of a free bet offer, deposited money, lost money, was immediately advertised another free bet offer, and the cycle would begin again.”

Luke found that being “bombarded with ads” on his mobile

“made it a problem that became impossible to escape.”

It is hardly surprising, then, that earlier this month a group of 50 academics called for “badly needed” restrictions on the promotion of gambling products. They wrote:



“In our opinion it has become quite clear that the gambling products being offered and the ways in which they are promoted are harmful to individual and family health and damaging to national life”,


adding that protecting young people should be a “top priority”, with unprecedented numbers being exposed to gambling advertisements via the internet and television. Their concerns include advertisements on TV, radio, online and elsewhere, gambling company logos on sports kits and in sporting venues, increasingly sophisticated direct marketing to individual customers and the use of sporting celebrities in gambling ads who become role models for vulnerable children.

These academics are not alone. There is a growing clamour for major reform among the public. A YouGov poll last year found that almost two-thirds of adults favour a complete ban on gambling ads and a ban on gambling sponsorship of sporting events and teams. In your Lordships’ House, the 150-plus members of Peers for Gambling Reform want change; just a few weeks ago, the noble Lord, Lord True, speaking in a personal capacity but while at the Dispatch Box, said that as a sports fan he was

“sick and tired of gambling advertising being thrust down viewers’ throats.”—[Official Report, 27/1/22; col. 446.]

Some changes have been made. The Advertising Standards Authority has tightened some rules and, possibly to ward off a tougher crackdown, the gambling industry itself has taken action. The Gambling Industry Code for Socially Responsible Advertising, which is in addition to the ASA’s codes, has been strengthened and includes a whistle-to-whistle ban on gambling ads during televised football games.

Although these moves are welcome, they only chip away at the barrage of messages adults and children see on a daily basis. After all, gambling logos can still appear more than 700 times in a single televised football game, despite the ban, because logos on shirts do not count as advertising. The industry and, at least until recently, Ministers, have used a variety of arguments against further restrictions: loss of income to commercial public service broadcasters and sports clubs, likely growth in black market gambling, and an absence, they claim, of evidence linking gambling advertising and gambling harm.

However, I believe that there are answers to each of these. For example, a ban on sponsoring sporting bodies could be phased in and the loss offset by offering sports rights, where gambling companies pay for the right to offer betting on sporting events. Working with banks, tougher measures against black market gambling could be introduced, although it should be noted that the Gambling Commission has said that the industry’s concerns about black market gambling are overstated.

I want to concentrate on the claim that there is no evidence of a causal relationship between gambling advertising and harm. To make this claim, the industry has frequently called in aid—as did John Whittingdale when he was Gambling Minister—the very limited survey of relevant research carried out by Per Binde in 2014, from which he concluded that none showed a causal link between gambling ads and harm. Yet the operators fail to mention that, more recently, in 2019, Per Binde produced a further study that concluded:

“Gambling advertising may contribute to problem gambling, and problem gamblers are more sensitive to advertising impact than non-problem gamblers.”


Here, and around the world, there is a growing body of evidence to support that more recent conclusion by Per Binde. Following a review of evidence, the ASA, for example, said:

“Several studies … have found associations between advertising exposure and the behaviour of problem and at-risk gamblers.”


It said that some studies produced evidence that was

“robust enough to support the existence of an association between exposure and gambling behaviour”.

A study published in December 2021 in the Journal of Gambling Studies shows that advertising is a predictor of at-risk and problem gambling in secondary school children. A recent Gambling Commission survey found that 34% of British bettors admitted to being influenced by advertising, noting that 16% claimed that ads caused them to increase their gambling. Some 13% said that ads led them to initially take up gambling, and nearly 15% said that viewing ads resulted in them taking up gambling again after taking a break. Earlier this year, researchers at Ipsos MORI and the University of Stirling found that 96% of young people aged 11 to 24 had seen gambling marketing messages in the last month and were more likely to bet as a result.

Under the heading:

“Gambling Advertising has no public benefit and contributes to harm”


the Coalition Against Gambling Ads cites multiple examples of recent research evidence and concludes:

“There is good evidence that, for a considerable number of people, gambling advertising substantially contributes to disordered gambling”.


These are just a few examples of the compelling body of evidence that has built up. It is undoubtably true that more research is needed, but there is now sufficient to suggest that we should be seriously concerned, and that industry claims that there is no link between gambling advertising and gambling harm should be dismissed. I was heartened that, in recent correspondence with me, the Minister, wrote that, “the government remains absolutely alive to the differential impacts and risks that gambling advertising may pose, especially to certain groups such as children and those already experiencing problems with their gambling.”

I am also heartened that, although it took some persuading, the Government now intend that the outcome of their gambling review will be based on a public health approach, just as we already have in relation to drugs, alcohol and tobacco. For gambling, a public health approach should lead to significant curbs on advertising, a ban on direct marketing, an end to inducements such as so-called free bets and the phasing out of sports sponsorship.

With around a third of a million problem gamblers, including more than 60,000 children, 2 million people impacted by it and more than one gambling-related suicide every day, we simply cannot continue as we are. Major reform of gambling advertising and other marketing measures are urgently needed and, despite what the industry says, are justified by the evidence. I hope the Minister agrees.

Public Health: Media Advertising

Lord Foster of Bath Excerpts

Monday 28th February 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

The Health and Care Bill introduces new UK-wide restrictions for the advertising of less healthy food and drink products, which are due to come into force from 1 January 2023. The noble Baroness referred to the recently published evaluation of the advertising restrictions introduced by Transport for London, which we note were limited to outdoor advertising. We intend to look at and analyse that evaluation in more detail.

[Lord Foster of Bath (LD)]

My Lords, I declare my interest as chairman of Peers for Gambling Reform. The Minister made reference to gambling just a few seconds ago and will be aware that the gambling industry spends in excess of £1.5 billion a year on advertising and associated marketing. Does he believe that that improves or damages public health?

[Lord Parkinson of Whitley Bay (Con)]

As the noble Lord will know, I cannot pre-empt our review of the Gambling Act, which is looking at all these issues and taking evidence from many, including Peers for Gambling Reform. It is a thorough and evidence-led look at gambling regulation; advertising is an important part of that, and we will set out our response in a White Paper in due course.