Gambling (Licensing and Advertising) Bill

Guy Opperman Excerpts

Wednesday 26th March 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mrs Helen Grant)]

I beg to move, That this House agrees with Lords amendment 1.

The Lords amendment gives the Secretary of State reserve powers to extend the horserace betting levy to all bookmakers holding a remote operating licence from the Gambling Commission after the remote gambling Bill has been enacted. The amendment is fully in keeping with the context and purpose of the Bill, which is about levelling the playing field for bookmakers engaging with British punters.

Subsections (1) and (2) are broadly drafted to ensure that the Secretary of State can make all the changes necessary to secure extension compatible with the UK’s obligations under European Union law. Members may recall that we resisted previous levy amendments because we believed they failed to offer that necessary scope.

Subsection (3) provides that secondary legislation introduced under this amendment will be subject to affirmative procedure in both Houses of Parliament. Subsection (4) makes it clear that existing provisions to abolish the levy once a suitable replacement has been found are unaffected by the amendment.

We have tabled our own amendment because we are persuaded that a statutory levy should be applied fairly, but we remain firmly of the view that the need for genuine levy reform cannot be satisfied through extension to offshore remote bookmakers alone. That is why this amendment is part of a wider levy reform package, which was announced by the Chancellor a week ago in the Budget. We will now move forward very quickly on two concurrent pieces of work.

On extending the levy, we will seek to complete all of the necessary work in time for the 2015 negotiations on the 55th levy scheme, which will apply from April 2016. The timing will, of course, be subject to the outcome of discussions with the European Commission, which began last Friday. We hope to launch a consultation in May on the mechanics of extension.

[Guy Opperman (Hexham) (Con)]

Does my hon. Friend agree that this announcement and today’s developments are very good news for racing, which provides tremendous support for jobs and local tourism, and that it is good that the Government are now beginning to work properly with British racing?

[Mrs Grant]

I know that my hon. Friend, as a former jockey, has a deep and intimate knowledge of the industry. He makes an excellent point and that is precisely why we are making these reforms.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

I want to make a few quick comments on holding a remote operating licence from the Gambling Commission. I will also comment on those based overseas who will be required to obtain a remote operating licence from the commission as a result of measures in the Bill.

I bring that to the Minister’s attention because of the changes that will be introduced off the back of the Bill. Currently, remote gambling operators in only 31 jurisdictions can advertise in the UK. As a consequence of the Bill, the scope for advertising will widen sixfold to 196 jurisdictions, as long as providers get the operating licence. Providers from, for example, China and Brazil cannot advertise in the UK, but under the Bill, they will be able to do so for the first time if they get a Gambling Commission licence under Lords amendment 1. I make that point because, between 2006 and 2012, advertising on TV increased by 600%. With the licence comes the advertising. Perhaps the Government will give the House an indication of how they intend, through the licensing grant, to ensure that advertising does not spiral out of control.

I thank the Minister and the Lords for making the changes. Two welcome and important commitments were made in the other place. I divided the House on the introduction of a one-stop shop self-exclusion mechanism and got support from Labour colleagues to make that happen. I am pleased that those changes are included in the Bill because they will strengthen player protection. Put simply, a customer need ask only once in their local betting shop and their exclusion will apply to all shops in that chain and to all chains in the UK. That, too, is good news. The concept of a one-stop shop is to help to deliver an important tool to assist problem gamblers to take back control over their lives, as it is often described. That is good news.

I am pleased to see the financial transaction blocking amendments, which are good news. I am also pleased to confirm that the Gambling Commission has reached agreement with major payment systems organisations, namely MasterCard, PayPal and Visa Europe, to work together to block financial transactions with unlicensed operators that seek to use payment systems for illegal purposes. That is good news for the Bill and for the good work put into the process by Members of the House, and those in the other place especially, who made that happen.

I want to ask the Minister two questions. On the voluntary approach to the fixed odds betting terminals, there is an indication that there will be regulations. Will she indicate whether it is the Government’s intention to put the situation right in the Consumer Rights Bill? If so, we are probably at the stage where those measures need to be included in it. Consumer protection is also important. Is it the Government’s intention to provide for the FOBT voluntary approach regulations in the Consumer Rights Bill?

Lastly, I want to ask the Minister about a technical point. I would welcome any clarification she can give on how, prior to legislation, the voluntary approach to financial transaction blocking will apply to Northern Ireland. I ask because, as I understand it, the Gambling Commission, which does not have jurisdiction in Northern Ireland, will play the key mediating role. Will she indicate how that will work? Will it be done through the Northern Ireland Assembly and an amendment there, or will it be done through further UK Government changes?

I am very pleased that, at long last, the amended Bill seems to be going in the direction we want it go in. That is down to the hard work of Members in this Chamber and in the other place. In particular, I thank the hon. Member for Eltham (Clive Efford) for his hard work. I thank the Minister, too.

[Guy Opperman]

I started out aged 14 as an apprentice stable lad. I worked my way up through a racing stable and then became a jockey at various stages of my life. I am lucky enough and privileged enough to have ridden upsides Tony McCoy, who famously asked me what my real job was. I am also very fortunate to be the Member of Parliament for Hexham, which is one of the finest racecourses in the country. It will strongly welcome the Bill as demonstrating support for smaller racecourses, as more money goes back into the racing community.

Any interpretation of the Bill will show that it is right that bookmakers now support the industry from which they benefit so much. I have met many bookmakers over the years as this matter has gone through the House. This is not an anti-bookmaker measure; it will produce a level playing field where bookmakers make a proper contribution to the racing community.

I welcome the announcements in the Budget. It is worth reminding the House that it is right that the LIBOR fines, paid for by those who demonstrated the worst of values, should now be supporting those who demonstrate the best of values. I support LIBOR fines going to St John Ambulance—I have certainly used its services in point-to-points and the like—and the VAT relief on fuel for air ambulances. We cannot have racecourses without those facilities. The Chancellor’s decision, ably set out by my hon. Friend the Member for Bury North (Mr Nuttall), to extend the horseracing betting levy to offshore bookmakers and to consider wider levy reforms—something that has been a nirvana for so many people involved in racing—is fantastically good news. I will come on to the racing right to support the sport, which we need to address and expand on, in a moment.

In addressing the comments by the hon. Member for Eltham (Clive Efford), it is important to understand that the Gambling Act 2005, introduced by the previous Government, effectively introduced the system that we have had to amend, control and change. The Act was far from helpful. As someone who was working in racing throughout the period of the previous Government, I can assure the House that they were deeply unsupportive of horseracing.

I welcome the introduction of the racing right, which is fantastic. After all, racing is key to tourism, local jobs and the rural package that several small towns offer. I have been lucky enough to ride at all the big tracks, such as Cheltenham and Kempton Park. I am not denigrating, in any way, those tracks—their fences are a bit bigger and stiffer, and when one falls one certainly falls quite hard—but it is the smaller tracks, the Towcesters, the Ludlows and, of course, the Hexhams that are the true lifeblood of racing. They are vital to its future. The Bill will introduce the support that we want.

It is important to understand and make the wider point that some have touched on, which is that without support for racing there will be no bloodstock sales, no breeding, no studs and no veterinary support. I, for one, broke several bones. Without racing, I would have put various orthopaedic surgeons in the NHS in fewer situations. All those people will benefit from an enhancement of racing.

We need more from the Minister on what constitutes the racing right. We accept and acknowledge that this is a good Bill and that we are heading in the right direction, and we accept and acknowledge that wider levy reform is for the benefit of one and all in racing, but we need to understand what exactly the racing right entails. That needs to be expanded on to a greater degree, because British racing is a wonderful institution and it needs all our support.

[Mr John Leech (Manchester, Withington) (LD)]

I do not intend to detain the House for long, but I want to put on record the Liberal Democrats’ support for the Lords amendment. This change has been campaigned for by Members in all parts of the House, but particularly by my right hon. Friend the Member for Bath (Mr Foster). I found it rather frustrating that we could not deal with it in the House of Commons rather than expecting the Lords to improve a Bill that is generally considered acceptable. However, the amendment will help to level the playing field between onshore bookies and offshore gambling providers, which I think is in line with the overall aims of the Bill, and I am happy to support it.