Gambling (Licensing and Advertising) Bill

Helen Grant Excerpts

Tuesday 26th November 2013 Commons Chamber

[Clive Efford]

My hon. Friend is right about that. Of course, a significant duty is levied on alcohol and tobacco, which does contribute towards providing public services, for just the reason he outlines. He rightly says that just about £5.7 million is spent on treatment and research, but the overall value of the gambling industry is about £6 billion. The online gambling industry is worth about £2 billion, so it is not unreasonable to expect that more could be contributed towards the treatment of problem gambling in the future.

I am getting a little bogged down, so I will try to move quickly through my amendments. On self-exclusion, the Minister failed to convince us in Committee that she was going to be robust enough in ensuring that we will deliver a one-stop shop—a single exclusion system right across the gambling industry regulated by the Gambling Commission. We reached a point where I kept asking the same question and I got several evasive answers, so I put my simple question to her again: will she require the Gambling Commission to introduce a single, one-stop shop self-exclusion system across the gambling industry? That is what we are pushing her to do.

When we talk about dormant accounts, we are also talking about bets that are void because the horse did not run, about unclaimed winnings and about the accounts of people who have left money sitting in them for more than a year. That money should be put to use for good causes, such as treatment. I know that an element of it is used in that way, but we do not know how much. [Interruption.] If the hon. Member for Shipley, who is trying to intervene from a sedentary position, were to look at the report written by the right hon. Member for Bath (Mr Foster), he would see how difficult it is to identify how much money there is in those accounts. This is an opportunity for us to deal with that.

We are recommending financial blocking because it should be part of an overall package of measures that the Gambling Commission needs to have at its disposal. Much has been made of the Ofcom report, which concluded that financial blocking, as part of an overall basket of measures, could be an effective means of intervention, and we would certainly recommend that it should be so. Other countries use financial blocking and, taking on board the comments of the hon. Member for Bromley and Chislehurst (Robert Neill), we ask that none of our standards fall below those of other white list countries.

Finally, the horserace betting levy is an extremely important element that we have debated during the passage of the Bill. The horserace betting industry suggests that racing is missing out on £20 million a year that could be made if online remote betting companies were contributing to the betting levy. New clause 10 redefines the definition of a bookmaker in the Betting, Gaming and Lotteries Act 1963 to bring those remote gambling companies into line with the onshore companies that currently pay the levy.

Rather than saying to the Minister here and now that we can pass a system under this Bill that would require everyone to pay the betting levy long into the future, we are suggesting in new clause 11 that there is all-party agreement on the betting levy and that we all accept the principle of it. In fact, several of her hon. Friends have attempted to take a private Member’s Bill through on this specific issue. As we have said before, this is a rare opportunity to legislate in this area, and another such opportunity may be many moons away. In the meantime, the horse racing industry is missing out on vital income. The Minister has an opportunity in the legislation to take reserve powers away, to consult on what would be a long-term acceptable method of raising the horserace betting levy into the future and to come back to the House with her conclusions. It would be the waste of an opportunity not to do that at this time. If she is not minded to set such a timetable for the betting levy, we will put this new clause to the vote.

I hear what the hon. Member for Strangford (Jim Shannon) said about his amendment on self-exclusion and I know that he intends to put it to the vote. If he does, I will urge my hon. Friends to support his amendment as well.

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

I thank Members for a highly stimulating debate on a wide range of issues including casinos, enforcement, spread betting, consumer protection, dormant accounts, the advertising watershed and, of course, the levy.

I will start with new clause 1, which relates to casinos. We have heard important contributions from my hon. Friends the Members for Rochford and Southend East (James Duddridge), for Shipley (Philip Davies), for Manchester, Withington (Mr Leech), and for Bromley and Chislehurst (Robert Neill) and the hon. Member for Bradford South (Mr Sutcliffe). Members will not be surprised to hear that I have had several iPhones waved at me recently, with the implication that such devices can be played on trains and in bedrooms, so why not in casinos? Let me make it clear, those devices can be played in casinos, and can indeed be offered by casinos to customers but within the limits of the machine stakes and prize regulations.

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[Mr Sutcliffe]

I understand the point the Minister makes; it is quite proper that she speaks to the industry, but there is concern over the time scale. Is she going to try to do this while the Bill is going through both Houses, or is she looking at another date? The concern is that if we miss this opportunity, the boat will have gone. Just so I can be clear, is she talking about trying to do this within the time frame of the Bill passing through both Houses?

[Mrs Grant]

That is a fair question that I am just about to come on to. I know that the hon. Gentleman wants progress here, and I am aware that people need us to get on with this and I assure him that it is my intention to get on. I am committed to bringing the conversations that we have already started to a conclusion by March 2014. That may be a little later that he would like, but I want to do this properly, because that is far better than not doing so. Furthermore, I reassure him and my hon. Friend the Member for Rochford and Southend East that primary legislation is not needed in relation to the casinos’ aspirations. Those aspirations could be achieved by secondary legislation, if we felt that to be wise. For all those reasons I am firmly opposed to the new clause, because it removes important controls for consumer protection, which is what the Bill is about, and paves the way for unintended consequences.

I thank my hon. Friend the Member for Shipley and the hon. Member for Eltham (Clive Efford) for their important suggestions about enforcement, including reporting on enforcement activity and financial transaction blocking. However, amendment 1 is unnecessary as the Gambling Commission already publishes annual information and data about its activities, including its regulatory and enforcement activities as well as industry statistics, which include those on betting integrity. I draw the attention of my hon. Friend the Member for Shipley to the Gambling Commission’s 2012-13 annual review, which already details the enforcement activity it has undertaken. A further separate report would not significantly add anything to the material already published by the commission and would therefore involve unnecessary duplication. I know that he is a stickler, and I want to assure him that the commission is constantly improving its coverage of information and has assured me that it is willing to ensure that it includes information about its enforcement activities in relation to remote gambling as part of the material that it already publishes. For those reasons, I do not intend to accept my hon. Friend’s amendment.

[Paul Farrelly]

Will the Minister give way?

[Mrs Grant]

I want to make some progress; I have too much to get through. When I have made some progress, I will come back to the hon. Gentleman.

New clause 12 would permit the Gambling Commission to introduce financial transaction blocking. The evidence on the effectiveness of financial transaction blocking is far from convincing and, as we heard in Committee, the industry clearly has doubts about its effectiveness. I do not wish to rule out the blocking of financial transactions in the future should it become appropriate or necessary and if we can see that it is effective. As the range of tools at the Gambling Commission’s disposal has already been shown to be effective, I do not feel that it would be appropriate to seek that power in this Bill.

I thank hon. Members for raising the important issue of sporting integrity and the need to ensure that operators have an obligation to report suspicious market activity. Although I am satisfied that strong and effective measures are in place to ensure that that happens, I am pleased to be able to confirm, to the shadow Minister in particular, that the Financial Conduct Authority will issue guidance to the two sports spread betting firms operating in the United Kingdom and that will reinforce the current arrangements. The new guidance provides an opportunity for the FCA to clarify the meaning of its rules and to state precisely what it requires of the sports spread betting firms. That will allow greater consistency in how suspicious market activity is reported.

[Clive Efford]

I want to clarify what the Minister has just said about the FCA and what is being confirmed. She said, I think, that the FCA was confirming the current arrangements, which are far from satisfactory. Will it adopt all the requirements of licence condition 15.1?

[Mrs Grant]

No, I did not say that at all. In evidence given in Committee, the FCA clearly said that it would consider publishing further guidance to the two spread betting operators that it regulates. The FCA has come back since then and said that it will do that. I am sure that the shadow Minister is aware of the teeth that such guidance has, particularly if it is specific. If there is a breach of guidance, that will clearly have serious consequences for those who have breached it. In my opinion, this is a highly proportionate response to an issue that, although important, does not require intervention through primary legislation. I hope that the hon. Gentleman agrees that there is absolutely no evidence that the regulation of sports spread betting by the FCA has compromised sporting integrity. I do not believe there is a case for a fundamental change to the arrangements and it is right to allow the FCA, which is an independent regulator, to get on with issuing the guidance. If appropriate, the FCA will, of course, assess its effectiveness in due course. I encourage the authority to do that very quickly.

New clause 3 would require a kitemark to be displayed on licensed operators’ websites. I continue to argue that we are all batting for the same aim. I support the arguments made by the hon. Member for Eltham in Committee and today that providing clarity for consumers that they are using a Gambling Commission-regulated site is an important element of consumer protection. I hope that it would provide a strong element of promotional advantage to the operators licensed by the Gambling Commission. As I said in Committee, I will follow through on my intention to see progress on the work that the commission has already commenced to ensure that consumers can quickly and clearly establish that they are transacting with a GB-licensed site. I certainly do not intend to get involved in clarifying with the commission how many centimetres the logo should measure or what colour it should be. It is reasonable to leave the regulator to get on with that. Accordingly, I see no need for a new clause to achieve the end result that we clearly all want.

New clause 4 would end the voluntary approach to operator contributions for research into, education on and treatment for problem gambling, making it compulsory for all operators licensed by the Gambling Commission. The voluntary arrangements were revised only recently, in 2012, and I am satisfied that they are working. I will, of course, continue to monitor the effectiveness of the voluntary arrangements and therefore do not intend to accept the new clause.

New clause 6 would enshrine in statute a one-off commitment to consult on standardised self-exclusion. At present, the Gambling Commission’s licence conditions and codes of practice include the requirement for remote licensees to put into effect procedures for self-exclusion. We recognise that operators could do more by co-operating and working together to help players self-exclude from local gambling premises and online sites, but the industry is already taking steps. A good example is the imminent harm minimisation conference being organised by the Responsible Gambling Trust. I expect to see progress on player protection over the coming months, including the development of better tools to help players to gamble safely. If we are still having this conversation in 12 months’ time, there will be little alternative but to embark on a process of mandating controls.

New clause 14, tabled by the hon. Member for Strangford (Jim Shannon), would enshrine in statute the requirement for the Gambling Commission to hold a list of those who wish to self-exclude. It would be a condition of the remote operating licence that individuals on the list must be excluded. A one-stop shop might be an appropriate goal and I know that it would do considerable good, but I do not wish to make a commitment to pursue that option alone—given the complexities and practicalities involved—when other elements of harm minimisation might be even more significant, such as player feedback and information on betting habits as well as in-play alerts on losses. We should also not lose sight of the fact that self-exclusion is just one tool in a suite of player protections. I urge the industry to make the fastest possible progress. The shadow Minister pressed me on this point in Committee and has done so again today, and I am prepared to commit to driving all the parties to make good their commitments on developing and implementing player-protection measures and to consider using the powers I have, including the imposition of licence conditions, if I am not satisfied.

New clause 13 seeks to ensure that the social responsibility provisions adopted by the Gambling Commission reflect the highest possible standards. As I said in Committee, I am confident that the British regulatory system is a model of international best practice and the commission’s requirements are robust and of the highest standard. I do not accept that the commission lags behind in its social responsibility requirements.

[Robert Neill]

I understand the Minister’s point, but is she satisfied that, regardless of the quality of the standards, there is the capacity in the system effectively to enforce those standards on a larger scale? What can she say about not losing expertise from the white-listed countries?

[Mrs Grant]

My hon. Friend makes a good point, but I must tell him that I am absolutely satisfied that the Gambling Commission has all the tools it needs at its disposal properly to enforce the regulations. There will, of course, always be grey areas, but when the commission comes up against them, it is up to it to make proper decisions according to risk and proportionality.

The Gambling Commission is internationally respected. It engages extensively with overseas regulators, participates in international and European regulatory forums and hosts numerous visits each year from overseas regulators who are keen to learn from it. The new clause is therefore unnecessary and I do not intend to accept it.

[Clive Efford]

I am grateful to the Minister, who is being very generous in giving way as I know she has a lot to get through. The issue is that although it is easy to self-exclude from, for example, four betting shops on the high street, there are a multiplicity of ways of gambling on the internet without a single system of self-exclusion—that is, a one-stop shop. Is that the minimum standard that she will require?

[Mrs Grant]

I have made it clear that the industry has made various commitments, and I want it to get on with what it has said it will do. There are issues and complexities with the one-stop-shop method of self-exclusion. I will keep it under review and if I am not satisfied within a reasonable period that the Government are doing everything we should be doing, I will look at it again.

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[Clive Efford]

There is agreement among Members on both sides of the House about this, and many Government Back Benchers have supported a private Member’s Bill that would have a similar effect. We are suggesting not that we solve the problem now but that she takes a reserve power and comes back to the House. In the meantime, we should allow the levy to be applied to remote gambling operators, because in the intervening period the horse racing industry is missing out on £20 million per year. When will she regulate if not now?

[Mrs Grant]

I think I have made it clear to the shadow Minister that I am happy to look at this; I will consult on any workable proposal that is put to me which is sustainable, enforceable and legally sound, but we have to do it properly. I am not prepared to cut corners—we owe that to betting and to racing. We have waited 50 years; we now have a four-year opportunity and I am determined to make the most of it.

Horse racing is enjoyed by millions of people and is the second most attended sport in Britain after football. It supports 85,000 jobs across the country and contributes to local economies both through employment and by attracting a considerable number of visitors. We owe it to racing and the betting industries to get this right, and hon. Members will have repeatedly heard my determination to do exactly that. That is why it is important to get levy reform right and not to accept either of the new clauses, which could so easily set limits on what can be achieved.

For all the reasons that I have stated, I cannot accept any of the new clauses or amendment 1.

[James Duddridge]

While I am clearly disappointed that new clause 1 was not accepted, we have had an interesting debate and moved things forward a little. The Minister will continue to have discussions with the industry. I was concerned about how long those would take, and the Minister has assured me and other hon. Members that this process will come to a conclusion in March 2014. I expressed some concerns about whether we would be able to take this forward in secondary legislation. The Minister has asserted that that would not be a problem. Time did not permit her to go into detail, but I take her at her word. Perhaps she will look at how it will happen again, and reflect on the suggestion made by the hon. Member for Bury North (Mr Nuttall) that an amendment should be tabled in the House of Lords that would permit her to make this change if at the end of the consultation the Minister believed it was the right thing to do.

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 11

Power to extend the horserace betting levy to overseas bookmakers

‘(1) The Secretary of State may by regulations amend any provision or provisions of the Betting, Gaming and Lotteries Act 1963 (c 2) (at a time when the provisions listed in section 15(1)(a) to (c) of the Horserace Betting and Olympic Lottery Act 2004 (horserace betting levy system) have not been entirely repealed by order under that section), the Gambling Act 2005 and/or the Gambling Act 2005 (Horserace Betting Levy) Order 2007/2159 for the purposes of ensuring that each person who holds a remote gambling operating licence under the Gambling Act 2005 which authorises that person to provide facilities for betting shall be—

(a) liable to pay the bookmakers’ levy payable under section 27 of the Betting, Gaming and Lotteries Act 1963 (c 2); and

(b) subject to the provisions of section 120 of the Gambling Act 2005 (as modified in accordance with the Gambling Act 2005 (Horserace Betting Levy) Order 2007/2159) if that person is in default of such bookmakers’ levy.

(2) Regulations under this section must be made by statutory instrument.

(3) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.’.—(Clive Efford.)

Brought up.

Question put, That the clause be up added to the Bill.

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[Mrs Grant]

I beg to move, That the Bill be now read the Third time.

I begin by thanking all those from across the House and outside who have taken part in the debates on the Bill. In particular, I thank the Chairmen of the Committee, my hon. Friend the Member for Wellingborough (Mr Bone) and the hon. Member for Arfon (Hywel Williams).

The Bill has its origins in the previous Administration’s review of the remote gambling regulatory framework. I thank the hon. Member for Bradford South (Mr Sutcliffe) in particular for his contribution during the Bill’s progress. I thank the Culture, Media and Sport Committee for its thoughtful and thorough pre-legislative scrutiny, which was key in helping to strengthen the Bill.

I believe I am right in saying that the Bill enjoys support from across the House, although some believe that it does not go far enough. Several issues have been debated at various stages, including today, and several new clauses have been tabled. I have explained as carefully as I can the reasons we have chosen not to accept them. Although the Government have not accepted any amendments on these matters, as we do not believe the Bill is the right vehicle for such changes, we have noted the concern on these matters and hope to make progress on them through a non-legislative avenue.

The Bill is a prudential measure which will provide greater protection for consumers based in Great Britain. It will tighten current legislation to ensure that all remote gambling, whether provided in Britain or overseas, is a licensed activity, subject to the Gambling Commission’s standards and controls. I commend the Bill to the House.