Fixed Odds Betting Terminals Debate

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Fixed Odds Betting Terminals

Helen Grant Excerpts
Wednesday 8th January 2014

(10 years, 4 months ago)

Commons Chamber
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Helen Grant Portrait The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mrs Helen Grant)
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I beg to move an amendment to leave out from “House” to the end of the Question and add:

“understands the public concerns around fixed odds betting terminals regulated by the Gambling Act 2005; notes that the Government has made clear that it considers the future of B2 regulation to be unresolved; welcomes the Government-backed research into the effect of fixed odds betting terminals on problem gambling; believes that any development in the Government’s policy on this matter should be evidence-led; calls upon the betting industry to provide the data required for a proper understanding of the impact of fixed odds betting terminals; and further notes that local authorities already have planning powers to tackle localised problems and target specific areas where the cumulative impact of betting shops or other specific types of premises might be problematic, as well as licensing powers to tackle individual premises causing problems.

I find it remarkable that we are all here having this debate today. I remind the House that fixed odds betting terminals did not exist 17 years ago, but then the Labour Government came to power, liberalisation began, and the Gambling Act 2005 came about. By the time of the last general election more than 30,000 fixed odds betting terminals were in existence. Yet we find ourselves debating what this Government should do about them—discussing, again, how we should clear up Labour’s mess. That shows rank hypocrisy, total cynicism, and great opportunism.

Yes, I do think these machines are concerning, but the silence of Labour Members on this topic before they ended up in opposition was quite deafening. They brought these machines into being, yet they have the audacity to sit here with a motion that seeks to blame this Government for any harm the machines might cause.

Baroness Bray of Coln Portrait Angie Bray (Ealing Central and Acton) (Con)
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I am very clear that the mess was created by the previous Government and I do not accept excuses about not knowing the likely consequences. However, we seem to have the solution in our hands in the form of the Localism Act 2011. Would it not be possible to empower our local communities, through their local elected representatives, to use, for example, saturation as a reason for saying that they really cannot sustain any more?

Helen Grant Portrait Mrs Grant
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My hon. Friend makes a very good and interesting point. As I progress, I will talk about the powers that local authorities have, including article 4 directions.

Diane Abbott Portrait Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)
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The hon. Lady accuses Labour of cynicism and opportunism, but cynicism and opportunism are the besetting sins of politicians. What my constituents want to know is: what are we as a House going to do about the betting shop scourge? One of the main roads in Hackney—Mare street—has eight betting shops full of these machines. Something must be done.

Helen Grant Portrait Mrs Grant
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I can see that the hon. Lady is concerned. If she bears with me, I will explain exactly what this Government are doing. This is the Government who have pushed for the research, who are doing the research and who are actually pushing the industry to provide the data we need to tackle problem gambling. Before I deal with the hon. Lady’s point, I want to tell the House what the Government are doing in a little more detail.

This Government conducted a review last year of gaming machine stake and prize limits and looked very closely at the available evidence on fixed odds betting terminals. In particular, our review looked at evidence to support claims that these machines present an elevated risk of gambling-related harm. The review found that there are real concerns about fixed odds betting terminals and that some players have experienced considerable harm in using them. This Government therefore concluded that the future of these machines is unresolved, and we are undertaking urgent work to establish how they can be made safer, especially to those individuals who may be at greatest risk.

Alex Cunningham Portrait Alex Cunningham
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I agree with the Minister that we have learned a lot from the introduction of these terminals. BBC Tees today highlighted the fact that a 17-year-old boy is already addicted to them. His is just one of many lives that are being damaged, yet the betting industry seems to think it is okay to have single-person staffing without any support in its betting shops. Does that not illustrate that it is putting profit before the interests of the people it calls its customers?

Helen Grant Portrait Mrs Grant
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No, I do not accept that. The Gambling Commission, as the hon. Gentleman is well aware, has a requirement that under-age individuals are not allowed to gamble in licensed betting shops. Obviously, if the rules and conditions are breached, the operator is at risk of losing their licence. I will develop that argument further and say a little more about staffing and security numbers as I progress.

The motion raises a wide range of issues, but fails completely to focus on the evidence and activity that is well under way. In order to make appropriate decisions about fixed odds betting terminals, we need better to understand how they are used and the real impact on players. That is why the UK is conducting the largest ever programmes of research into gaming machine usage.

The Opposition acknowledge—notwithstanding what the shadow Minister, the hon. Member for Eltham (Clive Efford), said in his opening speech—that there is insufficient evidence to support a reduction in stakes and prizes. That is why we have focused our attention on improving the evidence base, so that we can determine whether a reduction in speed of play or a reduction in maximum stake will make the machines safer.

Mark Spencer Portrait Mr Spencer
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I was taught at an early age that the only thing anyone needs to know about the bookies is that there are four windows to pay in and one window that pays out. Surely education is one of the solutions to this problem. Will the Minister assure the House that she will do all she can to make sure that the gaming industry does what it can to educate its customers?

Helen Grant Portrait Mrs Grant
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My hon. Friend makes a very good point. I had the big five betting operators in to see me in December, and I can reassure him that they are very mindful of the role of player education within player protection, and that they want to progress and do more about it.

None Portrait Several hon. Members
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rose

Helen Grant Portrait Mrs Grant
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I will give way once I have made a little progress.

It is crucial that interventions to make machines safer are based on an understanding of what measures are likely to be effective, rather than being simple, irrational knee-jerk reactions.

Joan Ruddock Portrait Dame Joan Ruddock
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I am extremely grateful to the Minister for giving way. I am carefully following what she is saying. Will she explain how—no matter how much care is exercised and what change might happen—areas of real multiple deprivation, such as my constituency, have so many betting shops with terminals, while wealthy areas do not? There is an absolute contrast, and our case is that the industry is targeting areas such as mine. Does she deny that, or not?

Helen Grant Portrait Mrs Grant
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I hear what the right hon. Lady says, but the location of betting premises and shops is to do with footfall, not deprivation. It is simply a matter of supply and demand.

The Government are in no doubt that there is scope for the industry to improve its ability to identify people who might be at risk and to intervene early to minimise harm. That is why we have demanded that the industry introduce better player protection measures.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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Does the Minister accept the point made so forcefully by Mary Portas that the prevalence of betting shops, particularly in deprived areas, has a very damaging effect on retail centres?

Helen Grant Portrait Mrs Grant
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We have of course looked carefully at the Portas review. We fed into the review, and the Government response made the point that article 4 directions exist and can be used by local authorities, in addition to the local authority licensing conditions that were recently used very successfully by Newham.

Andrew Percy Portrait Andrew Percy
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May I go back to the question asked by the right hon. Member for Lewisham, Deptford (Dame Joan Ruddock)? Is not the real reason that those betting premises are in her constituency the legislation for which she probably voted? Under the legislation, when a local councillor faces an application for a premises licence, the operator will already have received an operating licence from the Gambling Commission. With its three very strictly limited objectives, the legislation simply does not allow local councillors in her constituency to reject a premises licence application.

Helen Grant Portrait Mrs Grant
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My hon. Friend makes a very interesting point.

Lord Jackson of Peterborough Portrait Mr Stewart Jackson
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I have a great deal of sympathy with what the hon. Member for Eltham (Clive Efford) said, but I think that the Labour party’s motion is cynical and opportunistic, given recent history. Does the Minister not think that the Government’s case would be much more compelling if they were prepared to observe the precautionary principle of looking at the £100-a-spin game before the demonstrable empirical evidence is published in the autumn, particularly in respect of the impact on vulnerable people?

Helen Grant Portrait Mrs Grant
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I assure my hon. Friend that we will look at everything: no stone will remain unturned.

None Portrait Several hon. Members
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rose

--- Later in debate ---
Helen Grant Portrait Mrs Grant
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I think that I have been pretty generous so far. I want to make a little progress and then I will take more interventions.

On player protection, I have been consistently clear that the onus is on the betting industry immediately to develop and implement harm mitigation measures, and to make data available for independent research. I met the chief executives of the five largest UK bookmakers in December, and I challenged them to develop a plan by the end of January to link players with play in a way that allows us better to understand player behaviour and to assess the effectiveness of harm mitigation measures. That could include much more extensive use of card-based play on gaming machines to track player behaviour more systematically. I am not prepared, however, to delay taking action while we await research outcomes or industry plans to be developed. For that reason, I have challenged the industry to press ahead with its social responsibility code and to implement precautionary player protection measures at the earliest possible opportunity.

Yvonne Fovargue Portrait Yvonne Fovargue (Makerfield) (Lab)
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Will the Minister confirm that the research will include player behaviour analysis, which has been opposed by the industry? Indeed, it did not allow the university of Cambridge to take that forward. Such analysis is crucial to an understanding of how the machine and the player interact.

Helen Grant Portrait Mrs Grant
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I can confirm that.

The precautionary player protection measures include the implementation by March 2014 of suspensions in play when voluntary limits are reached, automatic alerts when customers have been playing for 30 minutes or when a certain amount of money has been spent, enhanced responsible gambling messaging, and a considerably improved and expanded system of voluntary self-exclusion, which will make it much easier for players to exclude themselves from multiple gambling premises.

I do not accept the accusation that those measures are unsatisfactory because the code is not mandatory. I have made it clear that if the industry does not make sufficient progress in implementing those measures or if it cannot demonstrate to me that they have been effective, the Government may act on a precautionary basis anyway. Additionally, the implementation of those measures does not preclude further action at any point, should it become necessary.

Brian H. Donohoe Portrait Mr Brian H. Donohoe (Central Ayrshire) (Lab)
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A major bookmaker in my constituency has just retired, so he is more honest than most. He tells me that this kind of gambling is like cocaine—it is totally and absolutely addictive. There are examples of that. A man wins £13,000 in the morning, but he is allowed to play until 8 o’clock in the evening and he loses every penny that he has won. That is how addictive it is. This problem is polluting our high streets. Shops are disappearing and in their place, we are getting bookmakers. This is a ridiculous situation and a decision is needed sooner rather than later.

Helen Grant Portrait Mrs Grant
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That is why there is no green light for fixed odds betting terminals. Their future is absolutely unresolved, pending the research that we have started.

The Responsible Gambling Trust is carrying out research to better understand how people behave when playing on gaming machines and what helps people to play responsibly. It is the largest piece of academic research that has ever been undertaken on the issue. It aims to understand patterns of gaming behaviour and to identify when there is robust evidence that consumers may be experiencing problems.

Philip Davies Portrait Philip Davies
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Will the Minister confirm that the bookmakers have provided all the information that she has asked for? If that is not the case, will she set out what information she would like from the bookmakers that they have not provided her with?

Helen Grant Portrait Mrs Grant
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My hon. Friend makes an important point. We need the information from the bookmakers. That is one reason why I met the big five bookmakers in December. They have indicated that they will provide the data we need. To make sure that they do provide the data, a further meeting has been set up with them for 30 January.

I met the Responsible Gambling Trust in December and pressed it to make progress with the research programme. I emphasised to it the importance of obtaining tangible research outcomes by the autumn of 2014. I am clear that the industry must rapidly share data to allow the research aims to be met within the required timetable.

Gerry Sutcliffe Portrait Mr Sutcliffe
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I am pleased that the Minister has acknowledged the work of the Responsible Gambling Trust, which is made up of five independent members and five members from the industry. Will she condemn the attacks that have been made on the Responsible Gambling Trust by the Campaign for Fairer Gambling, which is rubbishing any work that comes from the trust?

Helen Grant Portrait Mrs Grant
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I will not get involved in such arguments, but I will say that the Responsible Gambling Trust does good work and is a reputable organisation. I look forward to receiving this important piece of work from it later this year.

Thérèse Coffey Portrait Dr Thérèse Coffey
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In December, the public health survey looked at this issue for the first time. It stated:

“Among both men and women, there was no difference in gambling prevalence by area deprivation, once age was accounted for.”

That was true except among people in the most deprived quintile of the index of multiple deprivation, who were more likely to participate in bingo. There is further analysis relating to FOBTs and quintile four. However, the most recent data that we have show that, in essence, there is no difference by area.

Helen Grant Portrait Mrs Grant
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That is an interesting and important point, and I believe that that piece of work also indicated that levels of problem gambling had fallen from just below 1% to just below 0.5%. Notwithstanding the drop in the number of problem gamblers, the Government are concerned about any level of problem gambling and will, of course, urge the industry—as we are doing—to make real and proper progress on that matter.

Hugh Bayley Portrait Hugh Bayley (York Central) (Lab)
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The Minister is arguing that there is a serious problem, and she keeps wagging her finger at Labour Members and saying it is our fault. [Interruption.] Listen for a moment. She seems to acknowledge that there is a serious problem, so will her Government legislate to address the problem before the next general election?

Helen Grant Portrait Mrs Grant
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We believe in doing things properly. We are waiting for the research and have put pressure on the industry to produce the data. Reports will be coming out imminently, and precautionary protections will be put in place by the industry at the end of March. We will do whatever is needed to ensure that people are protected. Although planning is a matter for the Department for Communities and Local Government, my officials are in regular discussion with colleagues from that Department about betting shop clustering.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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Will the Minister give way?

Helen Grant Portrait Mrs Grant
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No, I will not; I am going to make some progress and I think I have been generous.

Changes to the national planning system are not the answer to local problems. Local authorities already have a range of powers available regarding betting shops, and a local planning authority can consult and make an article 4 direction that removes permitted development rights, where it considers that necessary to protect local amenity or the well-being of an area. The London boroughs of Southwark and of Barking and Dagenham have brought forward article 4 directions, thus requiring a planning application for any new betting shops. That will enable them to consider the application against their local plan. The betting shop must also comply with its licensing conditions, and where those are breached, the local licensing authority has power to intervene, including removing the licence to operate.

As we have heard, the motion before us calls for local communities to ban gaming machines in their areas. The Government agree that responsibility for managing high streets should rest with local areas, but the truth is that local authorities already have powers to control gambling premises in their areas. Local authorities have power to reject an application for a gambling premises licence, or to grant one with additional conditions should that be necessary. They have power to review licences after they have been granted, and to impose licence conditions after review. Many local authorities have already used those powers to good effect. For example, in November 2013, the London borough of Newham—which has been mentioned this afternoon—imposed conditions on a betting shop because of its concerns about crime, disorder and under-age gambling. The conditions stipulate that a minimum of two members of staff must be on duty throughout the day. Additionally, the betting shop must carry out an undercover, under-age test purchase to ensure that minors are not gambling, and it must send the results to the council and the police.

The Government believe it is right for the industry, in conjunction with local authorities, to agree on the appropriate level of staffing in betting shops, depending on the circumstances of the local area. Local authorities already have powers to ensure a minimum level of staffing where appropriate. The Government urge local authorities to fully utilise powers at their disposal to limit the number of betting shops in line with local demand, and to apply appropriate licensing conditions where they have cause to tackle issues of problem gambling in local communities. Adopting the motion would lead to a patchwork of regulation right across the country where it is okay for gaming machines to be located in some areas but not in others. I do not believe that that is the right way forward. The industry must instead introduce better targeted and more effective player protection for users of gaming machines in all locations.

Player protection is at the heart of the Government’s approach to fixed odds betting terminals. I have made it clear to the industry that it must urgently develop targeted player protection measures for those players who are at greatest risk. I do not believe that the motion can achieve such an outcome. However, I do not rule out any action that may be necessary to make machines safer. I am clear that if the betting industry fails to deliver on its commitment to implement enhanced player protection measures by March 2014, and does not share data for independent research, and if the balance of the evidence suggests precautionary action on stakes and prizes or other measures are required, the Government will not hesitate to act.