Statutory Gambling Levy

Debate between Carolyn Harris and Craig Whittaker

Tuesday 7th June 2022 Westminster Hall

[Carolyn Harris]

I will make some progress, because I have a long speech and a lot of people want to speak.

Earlier this year, NHS clinicians announced that they would stop taking money from the gambling industry to treat people with addiction. While I agree with the sentiment, I worry that that will only hurt treatment services in the long run. We need to find a better long-term solution to allow the NHS to access funding that comes from the industry but is not controlled by it.

The all-party parliamentary group for gambling related harm and Peers for Gambling Reform have recognised and commented on the limitations and failings of the current voluntary system. That view is shared elsewhere. Back in March, Lord Foster of Bath, chair of Peers for Gambling Reform, received a reply to a letter, from Andrew Rhodes, chief executive of the Gambling Commission. In his reply, Mr Rhodes stated that

“the current voluntary system does not provide long-term certainty of funding to support planning and commissioning, it does not impact on all operators fairly, and it is perceived as allowing gambling operators too much control over the availability and destination of funds.”

[Craig Whittaker (Calder Valley) (Con)]

Will the hon. Lady give way?

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[Carolyn Harris]

If my right hon. Friend listened to the rest of my speech, he might hear some information about where that is not the case. As for me being anti-gambling, I am certainly not. I spent last Thursday night at Ffos Las racecourse having a thoroughly good time placing bets on horses.

Clearly, the voluntary levy is not fit for purpose. It lacks consistency, transparency and, crucially, accountability. So, what is the solution?

[Craig Whittaker]

What the hon. Lady is trying to achieve is admirable, and she will find that she has a lot more support than she realises. My big concern, which I expressed in the previous debate on this subject as well, is the black market—the offline, unregulated areas. Black market gambling is growing at a huge pace, including, believe it or not, over WhatsApp, which is highly encrypted and hard to tackle. If we are to have a levy, how does she propose that we tackle this area? I fear that it will, sadly, push people into the black market.

[Carolyn Harris]

I draw the hon. Gentleman’s attention to the comments of Peers for Gambling Reform and the Gambling Commission about the industry’s expression of concern about the black market being extremely over-exaggerated.

[Craig Whittaker]

That is such a scary comment to make. I point the hon. Lady to the report “The State of Illegal Betting” produced by the Asian Racing Federation, which includes Australia, Japan and Hong Kong among its 17 members. It states that 61% of online gambling is unregulated, illegal and on the black market. Would she like to refute that evidence?

[Carolyn Harris]

I draw the hon. Gentleman’s attention, again, to the Gambling Commission’s own words that the scare around the black market has been grossly overestimated. That is from the Gambling Commission, not from me.

Gambling-related Harm

Debate between Carolyn Harris and Craig Whittaker

Tuesday 29th March 2022 Westminster Hall

[Craig Whittaker (Calder Valley) (Con)]

I wonder what the answer is. I fully understand what the hon. Lady is proposing, but look at the hard evidence from Norway. Norway has done exactly what the hon. Lady is proposing, but 66% of all gambling stakes in Norway are done on the black market or dark web. How does the hon. Lady propose that that does not happen in this case?

[Carolyn Harris]

Doing nothing is certainly not the answer. I know little about the Norway study, but just because Norway has not been successful, it does not mean to say that the UK Government would not be successful. We cannot afford to have any more of the issues that we have encountered for the last 17 years. Enough life has been lost, and doing nothing is not an answer.

I would like to pay tribute to Annie Ashton, who bravely started an e-petition when her husband Luke sadly took his own life after being lured back into gambling by relentless operators. I strongly back her calls to end the poisonous inducements that the industry uses to hook people on its addictive products. There is no such thing as a free bet.

It is not just inducements that are a massive problem. Gambling advertising has proliferated in recent years. We are now bombarded with gambling adverts on TV, online, at football matches and on billboards. I know that colleagues are particularly concerned about the impact that that has on children. If we look at recent published data, we can see the scale of the problem: 96% of people aged 11 to 24 have seen gambling marketing messages in the last month and are more likely to bet as a result; 45% of 11 to 17-year-olds and 72% of 18 to 24-year-olds see gambling advertising at least once a week on their social media, with one-third of young people reporting seeing it daily; 41,000 under 16-year-olds—children—are estimated to be followers of gambling-related accounts on social media; and 1,200 hours of gambling ads have been played on the radio during the school run hours over the last year.

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[Craig Whittaker (Calder Valley) (Con)]

Everybody here understands the damage caused by addiction, not just to the individual but to families, marriages and communities. Nobody doubts for a minute the challenges that the Government face in trying to regulate, in this case, the gambling industry to protect the most vulnerable, while at the same allowing the vast majority to enjoy their hobby or, in some cases, profession without it becoming an overburdened, bureaucratic straitjacket or without imposing a nanny-state solution on the majority. I say that because if the industry is restricted too harshly, the evidence shows that it just forces people on to the black market or the dark web, where there are absolutely no checks or balances in place to protect people. No, it is not difficult to access for someone who wants or needs to use it.

The reality is that problem gambling rates in the UK, at 0.3%, are low compared with our neighbours: in Italy, it is 2.4%; in Norway, 1.4%; and in France, 1.3%. Despite what the hon. Member for Swansea East (Carolyn Harris) says, a big part of that success is down to what industry in the UK has embraced, with programmes like “BeGambleAware”. That is not just a saying or catchphrase, but something tangible in every regulated high street betting shop with human interaction, as well as their online presence. The large industry players in this country have pledged contributions of over £100 million for research, education and treatment in this area.

[Carolyn Harris]

Will the hon. Gentleman acknowledge that for the money the industry has given, it says where it is spent? It has influence over how that money is spent and therefore it precludes people from accessing services because they feel there is industry interference.

[Craig Whittaker]

I was trying to highlight the fact that the hon. Lady said earlier that the industry was doing nothing, and the reality is that it is not doing nothing. It is actually part of why we have a much lower gambling problem in this country than our neighbours do. The industry is also spending a further £10 million on safer gambling education for all 11 to 19-year-olds throughout the country. As we have seen during the pandemic when we were all working from home, advertising on safer gambling is a much larger proportion of the money spent on gambling adverts.

That does not mean that we do nothing more. Of course there is more to do, and anyone who has experienced living with a problem gambler knows how potentially life-damaging it is for everyone around them. It is therefore right that any review of gambling has the most vulnerable at its heart.

Let us briefly look at what happens when we abandon a balanced, competitive, regulated market, which is the only way to deter the hugely increasing black market. I mentioned Norway earlier, which introduced restrictions on stakes, strict affordability checks, and curbs on advertising. Instead of protecting the most vulnerable, it drove them to the black market, where 66% of all gambling in Norway now takes place. There is no human interaction on that market, no checks on affordability, and no lifelines available, either. So Norway’s 1.4% problem gambling figure is much higher because it does not know where the problem gamblers are.