Gambling Reform

Lord Foster of Bath Excerpts

Tuesday 29th June 2021 Lords Chamber

[Baroness Barran (Con)]

We cannot prejudge the outcome of the Gambling Act review, but the essence of a public health response, which looks at the products, players and environment, are included within it.

[Lord Foster of Bath (LD) [V]]

My Lords, I declare my interest as chair of Peers for Gambling Reform. The NERA report shows that measures to reduce gambling harm, such as banning gambling sponsorship of football, would also help the UK economy. Such sponsorship links football and gambling in the minds of children. Just one edition of the BBC’s Match of the Day magazine, advertised as for “footy-mad youngsters”, had 52 gambling logos. Does the Minister think this is acceptable?

[Baroness Barran (Con)]

The noble Lord is right to raise these issues. As he knows, we are looking at this as part of the review of the Act. We have seen the conclusions from the NERA report on sports sponsorship, but we need to test them with sports bodies themselves.

Gambling: Early Mortality

Lord Foster of Bath Excerpts

Tuesday 20th April 2021 Lords Chamber

[Baroness Barran (Con)]

The Department for Education does not record how schools teach their pupils about gambling, but young people will be taught about gambling risks as part of the statutory health education curriculum, including the accumulation of debt. Training modules have been developed for teachers, including a specific section on gambling.

[Lord Foster of Bath (LD) [V]]

My Lords, only 3% of problem gamblers currently receive treatment. The planned new gambling clinics will help, but far more is needed. Given that one gambling company owner earned nearly £0.5 billion last year, much of it from problem gamblers, should not all gambling companies pay more to fund treatment through a compulsory levy?

[Baroness Barran (Con)]

As I mentioned in response to an earlier question, that is one of the issues that will be considered as part of the review of the Gambling Act. I can update the House that there has been an increased donation this year to GambleAware from the industry of £19 million, up from £10 million last year, and next year’s donation is forecast to be £26 million.

Audiovisual Media Services (Amendment) Regulations 2021

Lord Foster of Bath Excerpts

Tuesday 13th April 2021 Grand Committee

[Lord Foster of Bath (LD)]

My Lords, last November, when we debated the earlier SI, I welcomed it but raised a number of concerns. Frankly, today’s extra-technical fixes do not allay those concerns. A critical concern was about who would regulate to our satisfaction services that are available in the UK but are based elsewhere. The Minister said in November:

“Under the revised AVMS directive, each EU member state and the UK is responsible for regulating only the video-sharing platforms that fall within its jurisdiction. There will be only one country that has jurisdiction for each platform at any one time.”—[Official Report, 27/11/20; col. 440.]


So we have no say in the regulation of on-demand platforms, such as Netflix, which will be regulated in the Netherlands, and video-sharing platforms, such as YouTube, which will be regulated in Ireland.

Today’s SI does not help. It merely replaces the duty on Ofcom to co-operate with EU regulators with a power for Ofcom to do so. As the Minister explained last November,

“Ofcom will rely on informal co-operation with the relevant EU regulatory authorities for information regarding determination of jurisdiction and discussions on co-operation and consistency of approaches towards video-sharing platform regulations”.—[Official Report, 27/11/20; col. 451.]

So it is down to informal co-operation rather than, as previously, having membership of the European Regulators Group for Audiovisual Media Services, which sets the rules for how all other EU regulators will operate.

I have frequently asked whether Ofcom will seek at least observer status of ERGA so that we may have something a little more than “informal co-operation”. Can the Minister tell us whether the Government are urging Ofcom to do so? Of course, if it were significantly updated to cover ODPs and VSPs, the Council of Europe’s Convention on Transfrontier Television could provide a way for us to have a greater say, as, along with most EU countries, we remain in membership of the council. Are the Government considering this? Can she outline the intended regulatory regime once we have our much-awaited online harms legislation?

Last November, I asked the Minister:

“Do the Government intend their online harms legislation to bring all VSPs that impact on UK consumers under the scope of UK regulation?” —[Official Report, 27/11/20; col. 444.]

I did not get an answer then. Can she tell us now? If the answer is no, surely the much-vaunted taking back control will be a sham.

Finally, I ask the Minister to reflect on something else she said back in November, when she commented that

“if a platform has no physical presence in any country covered by the AVMS directive, then no country will have jurisdiction over it, even if the platform provides services in those countries.” —[Official Report, 27/11/20; col. 440.]

Are we really to believe that if a service provided to UK customers is based outside the EU or UK—say, in China—we will have no power to regulate it? I hope she can explain.

Office of Communications: Chair

Lord Foster of Bath Excerpts

Thursday 18th March 2021 Lords Chamber

Asked by

[Lord Foster of Bath]

To ask Her Majesty’s Government what plans they have to appoint a new Chair of the Office of Communications.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Baroness Barran) (Con)]

My Lords, the process to appoint a new permanent chair of Ofcom is currently under way. The process will be fair, open and robust. As with all public appointments, it will be conducted in line with the governance code and regulated by the Commissioner for Public Appointments. The preferred candidate will also appear in front of the DCMS Committee. The Government are committed to finding an outstanding individual, and we very much encourage all qualified candidates to come forward.

[Lord Foster of Bath (LD)]

My Lords, I thank the Minister for that reply. Given that one of the most important functions of Ofcom is to uphold the broadcasting impartiality regime which lies at the heart of our most trusted media, such as the BBC, does she agree that it would be unacceptable for the new chair to be someone with a long record of extreme political partisanship, and who, as a newspaper editor, presided over such headlines as “Enemies of the People” in relation to our trusted and independent judiciary, and “Crush the Saboteurs” in relation to those who voiced opposition to Brexit?

[Baroness Barran (Con)]

I am sure that the noble Lord will understand that I am not going to speculate on any potential candidate for the role, but I absolutely agree that it is critical that Ofcom remain impartial, independent and an evidence-based regulator.

Online Gambling: Stake Limits

Lord Foster of Bath Excerpts

Tuesday 9th February 2021 Lords Chamber

Asked by

[Lord Foster of Bath]

To ask Her Majesty’s Government, further to the announcement by the Gambling Commission on 2 February of new protections and controls for those who gamble through online slots games, what plans they have to introduce measures to apply stake limits to online gambling.

[Lord Foster of Bath (LD) [V]]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interests as set out in the register.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Baroness Barran)]

My Lords, we welcome the Gambling Commission’s new measures on online slots games, which will help to reduce the intensity of play and protect vulnerable people. We are seeking evidence on the case for and against further controls, such as stake limits, as part of the Gambling Act review. It will be an evidence-based review to ensure that we get the right balance between respecting freedom of choice and preventing harms.

--- Later in debate ---

[Lord Foster of Bath (LD) [V]]

My Lords, I thank the Minister for her response but I was concerned by the Government’s apparent complacency. Only last week, shocking research by Oxford University revealed the devastating impact on the health of those who gamble more than they can afford, including an increased likelihood of suicide. That shows the urgent need for measures on affordability and tighter restrictions on advertising, for example. If the Gambling Commission also proposes online stake limits, will the Government ensure their early introduction without waiting for the outcome of the gambling review?

[Baroness Barran (Con)]

I cannot accept that this Government have been complacent about reviewing measures in relation to gambling and protecting vulnerable people. We have made a number of changes, most importantly in recently announcing the full-scale review. We will continue to implement things as quickly as they are needed and not wait for legislation.

EU: Musicians

Lord Foster of Bath Excerpts

Thursday 28th January 2021 Lords Chamber

[Baroness Barran (Con)]

The Government are also concerned to make sure that our critical and creative sector—and within that, musicians—continue to thrive, which is why we are working closely with the sector to achieve that.

[Lord Foster of Bath (LD) [V]]

My Lords, in addition to problems with work permits, carnets and CITES certificates, there is another. Prior to Brexit, when UK orchestras toured Europe, they often visited several venues in multiple countries. Their own or rented specialist vehicles would move instruments and equipment from venue to venue. Can the Minister confirm that under the new post-Brexit cabotage rules this will no longer be possible unless UK orchestras stop using UK vehicles and rely on EU ones? Is this another example of taking back control?

[Baroness Barran (Con)]

The noble Lord is right that there are changes to the cabotage arrangements going forward. UK operators can perform some additional movements within another nation’s territory, but they are more limited than previously. Our colleagues in the Department for Transport are, we know, working hard to address these issues.

Television Licence Evasion

Lord Foster of Bath Excerpts

Tuesday 26th January 2021 Lords Chamber

[The Lord Speaker (Lord Fowler)]

I call the noble and learned Lord, Lord Morris of Aberavon. Lord Morris? No, he is not here. I call the noble Lord, Lord Foster of Bath.

[Lord Foster of Bath (LD) [V]]

My Lords, over the last few months the Rupert Murdoch-owned radio station talkRADIO has been using its broadcasting licence to wage war against the BBC licence fee and its collection. Last week saw a particularly egregious example, which was blatant and inaccurate propaganda, designed to pursue commercial self-interest. Does the Minister agree that if it is to maintain its reputation as the guardian of impartiality and accuracy in broadcasting, Ofcom should investigate and act?

[Baroness Barran (Con)]

The noble Lord is right that it is absolutely Ofcom’s responsibility to address issues such as the one he has just raised.

Gambling

Lord Foster of Bath Excerpts

Thursday 7th January 2021 Lords Chamber

[Baroness Barran (Con)]

I absolutely agree that we need to understand the social costs, but the more important issue is that we reduce the scale of problem gambling, because however well we measure the social costs, we will not capture the impact on human beings and their families.

[Lord Foster of Bath (LD) [V]]

My Lords, I refer to my interests as set out in the register. Despite all the publicity surrounding the promised increased voluntary contributions from gambling companies, in this financial year they are providing just £5 million extra to fund the treatment and prevention of problem gambling, yet leading charities and academics, the Advisory Board for Safer Gambling, your Lordships’ Committee on gambling, and even some gambling companies, are calling for a statutory rather than voluntary levy as a fair, robust and sustainable way forward. When will the Government accept this, and, recognising that change can be made without primary legislation, act?

[Baroness Barran (Con)]

As the noble Lord is aware, the review will look at all options for funding this area. The Government are open to alternative funding mechanisms, but it is only fair to acknowledge that the five major gambling companies have committed to an extra £100 million over four years.

Gambling and Lotteries

Lord Foster of Bath Excerpts

Monday 14th December 2020 Lords Chamber

[Lord Bassam of Brighton (Lab) [V]]

My Lords, I am grateful to the Minister for repeating this important Statement. Before turning to the detail, I note that it is becoming increasingly common for there to be a significant gap between the Commons Statements and our repeat of them. This is regrettable; I hope it will be addressed as we move into the new year.

The launch of this call for evidence on the effectiveness of gambling legislation is a welcome step, even if it has come much later than we on the Opposition Benches would have liked. As the Secretary of State said, advances in technology and shifts in how we live on a day-to-day basis mean that current regulation reflects a very different reality to the one we now live in. This consultation exercise represents a significant first step in recognising and responding to this challenge.

While high street betting shops must abide by a variety of rules, the regulatory picture for digital platforms is very different. In recent months we have seen some companies reducing their presence on the high street, but we know that online gambling is growing. Government initiatives in this area, while welcome, have been piecemeal. Industry bodies have taken steps to promote responsible gambling, including through November’s Safer Gambling Week, but we know that loopholes exist and are causing considerable damage.

With digital services there is the added challenge of jurisdiction, with some service providers registered outside the UK and therefore not currently within our regulatory orbit. We have discussed this very challenge recently in the context of audio-visual service providers and potential regulatory gaps arising from EU exit. Without prejudging the outcomes of the consultation and the next steps in the process, I hope the Minister can at least confirm that the department is cognisant of the issue. As I alluded to previously, we have been awaiting this project for some time. As with other policy areas such as online harms, we know that delays can result in genuine social costs. Can the Minister shed light on why it has taken so long to get to this point and outline the anticipated timescale beyond the consultation end date, which I believe is 31 March? While the technicalities involved in gambling regulation clearly necessitate a dedicated consultation and future legislation, it is nevertheless important not to look at these issues in isolation. For example, we know that adopting a public health-focused approach to gambling addiction could bring significant benefits to sufferers and their families.

The Statement cites work being undertaken by the Department of Health and Social Care to improve the support and treatment available to problem gamblers. We welcome this, but can the Minister confirm that the Department of Health and Social Care will be part of the broader regulatory discussions to ensure that future legislation supports, rather than undermines, its work on treatment?

There is a clear overlap between this gambling review and the Government’s wider online harms agenda, which, I am afraid to say, seems to have ground to a halt. By any conceivable measure, the DCMS is failing to protect people online. There is no draft online harms legislation to scrutinise and few indications of when it will arrive, or in what form. Can the Minister outline the state of play in relation to this? Can we expect to see concrete legislative proposals by Easter, for example?

We know that the department recently missed a statutory deadline under the Data Protection Act to provide provision relating to victims, including child victims, of data breaches. This news was broken to a select few noble Lords in correspondence on the day of the deadline. Can the Minister confirm why this milestone was missed and when the review is expected finally to take place?

While she is gazing into her crystal ball, perhaps the Minister might also provide news on the fan-led review of football governance. Given the close and important relationship between sports clubs and the gambling industry, it is crucial that these workstreams happen simultaneously, rather than sequentially. The Commons Minister said that work is under way on an informed basis, with the formal review to come as soon as possible. However, one Minister at the department told the Commons Select Committee to expect a consultation on the Electronic Communications Code this side of Christmas, whereas the noble Baroness told my noble friend Lord Stevenson of Balmacara on 10 December that timings were “still to be finalised”.

I apologise for failing to spread any festive cheer with this contribution, but all these issues are incredibly important. I appreciate that this has been a challenging year in many respects for government and for all, and I hope very much that 2021 will see us making meaningful progress on all fronts.

[Lord Foster of Bath (LD) [V]]

My Lords, I too thank the Minister for providing the opportunity to debate this Statement.

Since serving on the Commons committee that considered the Gambling Act 2005, I have seen the huge growth in gambling in this country brought about by that Act and by technological change, not least with the advent of the smartphone, enabling anyone to have 24/7 access to a mini-casino in their pocket, with high-speed games designed to keep people playing. With its spread throughout sport and television, children are seeing gambling as part of everyday life. The gambling industry and its profits have grown exponentially but, most worryingly, 60% of those profits are coming from just 5% of gamblers—those likely to be experiencing harm.

More recently, serving on the Lords committee on gambling, I received very clear evidence of the urgent need for action—not least that described in the committee’s 66 recommendations—from a statutory smart levy on the industry and a statutory duty of care to much stronger regulation of advertising and controls on affordability. Those recommendations, many of which do not need primary legislation, have widespread support in your Lordships’ House, as demonstrated by the nearly 150 Peers who have joined Peers for Gambling Reform, which I have the honour to chair and which seeks early implementation of those recommendations, so that those who wish to gamble can do so safely.

The urgency is illustrated by the figures. There are nearly half a million problem gamblers—probably more—including over 60,000 11 to 16 year-olds, with each problem gambler impacting the lives of family, friends and local communities, and, most tragically, on average, one gambling-related suicide every day.

So although I welcome the review, will the Minister assure me that in those areas where overwhelming evidence for change exists, the Government will take action immediately? Sadly, I was not confident about this last week. I asked the Minister what further evidence the Government need to establish a gambling ombudsman. Despite the overwhelming evidence in the Lords report, she replied:

“The Government continue to have an open mind about the role of an ombudsman.”—[Official Report, 9/12/20; col. 1234.]


I hope that she will she reconsider. However, I welcome the work that has been done on VIP schemes and banning credit card gambling, as well as the work in relation to loot boxes and affordability. Can the Minister update us on progress and assure us that, where action can be taken quickly without waiting for the conclusion of the review, it will happen?

Gambling harm is a public health issue, and like the noble Lord, Lord Bassam, I was disappointed to see no formal role for the Department of Health and Social Care in this review. Will the Minister assure me that the review will take a public health approach and that mechanisms are in place to ensure that DHSC participates fully? The threat of major reform has led the industry to make some welcome, albeit limited, changes, but we are dealing with a vast, multinational industry that is obliged to protect its profits. Does the Minister agree that this review must be evidenced-based and avoid undue influence by industry lobbyists—lobbyists arguing, for example, that reform should be muted for fear of seepage to the black market? Of course we should look to measures to tackle the black market through payment processors and domain blocking, but does she agree with the Gambling Commission that the black market is not a significant issue and should not be used to drive down standards locally? Is she aware that some operators in this country are themselves operating in black or grey markets abroad? Will the Minister ask the regulator to look into this matter urgently?

Last week, I met the mother and the fiancée of Chris Bruney, who tragically took his own life because of a gambling addiction at the age of just 25. Chris was a bright and vibrant young man with his whole life ahead of him. To my mind, there can be no more powerful illustration of the need to reform our outdated gambling laws. I urge the Government not to delay.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Baroness Barran) (Con)]

I thank both noble Lords for their welcome of the Statement and our call for evidence. I would like to pick up where the noble Lord, Lord Foster, finished, on the all-too-often tragic impact gambling can have on people’s lives and the lives of their friends, families and, in particular, children. That is where our greatest priority in this review lies.

The noble Lord, Lord Bassam, talked about the Government’s response being both piecemeal and slow. I am a bit puzzled about how both can be true. We have aimed to be responsive and have made significant decisions in the last year to improve the safety of, and reduce the risk of harm for, gamblers, but we have now announced an extensive and broad call for evidence, which we hope will address some of the issues several of your Lordships have raised in recent months in this House.

The noble Lord, Lord Bassam, also raised the point about offshore gambling. I am happy to write to the noble Lord if I have misunderstood, but this was a point also raised by the noble Lord, Lord Stevenson, last week. In 2014, Great Britain introduced one of the first point-of-consumption regimes for regulating gambling, which means that any gambling company, based anywhere in the world, that provides services to GB customers, must comply with the Gambling Commission licence conditions and pay remote gambling duties to the Exchequer.

I am afraid the connection broke up at one point in the comments from the noble Lord, Lord Bassam, so I think I missed one of his questions. I know both noble Lords were concerned about the Department of Health’s role. The noble Lord, Lord Foster, talked about the importance of a public health approach. Treatment is not directly in scope of the Act review; the focus is predominantly the regulation of gambling, particularly the powers of the Gambling Commission. However, the Department of Health remains absolutely committed to working on and improving treatment and integrating both NHS and third-sector provision in this field.

The noble Lord, Lord Bassam, apologised for a lack of festive cheer. I hope I can bring a little festive cheer, in that tomorrow my right honourable friend the Secretary of State will make a Statement in the other place about the online harms consultation. He will be able to address some of the other points on the timing of legislation. I hope we will take that Statement speedily after it is made in the other place.

The noble Lord, Lord Foster, talked about the risk to children and the number of children who have a gambling addiction or are problem gambling. As I said, the safety of children is our first priority in this review. I thank him and other noble Lords who sat on the committee for their 66 recommendations. He will have seen that the vast majority of these are in scope of the call for evidence. I assure him that we will not wait, as we have not waited already, to implement them.

The noble Lord, Lord Foster, said that there was overwhelming evidence for the appointment or creation of an ombudsman. Our starting point is that operators must be held accountable for their failings, and the review will look at the current system for redress. We will look at the pros and cons of different approaches and take a decision based on the evidence put forward. Again, I encourage all noble Lords and those in their networks to submit evidence.

Finally, I hope I can reassure the noble Lord that the review and the decisions taken from it will be based on evidence. He raised concerns about the power of lobbyists. Obviously, we have to look at all evidence fairly, but much evidence in this space is contested. We hope we will be able to resolve some of those contested areas and move forward with a gambling regime fit for the digital age.

Gambling Legislation

Lord Foster of Bath Excerpts

Wednesday 9th December 2020 Lords Chamber

[Baroness Barran (Con)]

I am slightly puzzled by the noble Lord’s question, because the location of the gambler is where our laws prevail, irrespective of the location of the operator.

[Lord Foster of Bath (LD) [V]]

My Lords, what further evidence do the Government need to establish a gambling ombudsman?

[Baroness Barran (Con)]

The Government continue to have an open mind about the role of an ombudsman. We are gathering evidence on the effectiveness of the regulatory regime and whether the Gambling Commission needs additional powers. We are already considering commission proposals for a fees uplift.