Gambling (Licensing and Advertising) Bill

Jim Shannon Excerpts

Tuesday 26th November 2013 Commons Chamber

[Philip Davies]

I am not entirely sure whether an annual report constitutes a “running commentary”, but if it does, then yes, I do want a running commentary on the steps that the Gambling Commission is taking, how effective those steps are proving to be, and how big the market is. Only if we know that will we know whether the Bill has been successful or whether we need to change it in some way.

When I table an amendment, I can often understand why the Government would not accept it, but I genuinely cannot understand why they would not accept this amendment, which is modest and which goes to the heart of some of the concerns that have been expressed about the Bill. On that basis, I hope that the Minister will accept my amendment and new clause 1, but will reject the new clauses tabled by Opposition Members.

[Jim Shannon (Strangford) (DUP)]

I am very pleased to have an opportunity to speak about new clause 14, and, indeed, about the other new clauses.

Some Members have suggested that the Government’s basic objective is to close a tax loophole that led numerous online gambling companies to relocate from the United Kingdom to white-listed or European economic area jurisdictions back in 2007. However, the Government have made clear that that is not the case, arguing that the Bill is actually all about consumer protection, and I am very pleased that they are focusing on that issue.

On the face of it, the Bill requires all online gambling providers that are located beyond the UK but are accessed by the UK market to have UK licences. That too is good news, but it seems to me that the Government’s good intention breaks down on two bases. It is all very well to have good intentions, but those good intentions must be translated into specific rules and legislation if we are to help problem gamblers, who are vulnerable people. I had the impression in Committee that both Government and Opposition were in favour of that, and I therefore think that all Members should feel able to support new clause 14.

First, as has been said in earlier debates, although the Bill presents companies outside the UK with a carrot in the form of the offer of advertising, it does not provide any kind of stick. There is nothing to prevent companies without licences from continuing to access the UK market; they just cannot advertise. That first failing feeds directly into the second. If there is nothing to prevent companies without licences from accessing the UK market, the primary practical implication of the Bill will be that there is more advertising for online gambling, which has increased hugely in recent years in any event. There is a risk that a Bill that was supposed to be about better consumer protection will quickly become, to a significant extent, the “Liberalisation of Gambling Advertising Bill”, although I am sure that that is not the intention.

The prospect of further advertising liberalisation for online gambling is particularly worrying, because online gambling has one of the highest “problem prevalence” figures. To understand the basis for public concern about that prospect, we need to have an understanding of the very real issue of problem gambling, which is a profoundly destructive addiction that ruins lives and, on occasion, ends in suicide. According to the gambling prevalence survey of 2010, there are approximately 450,000 problem gamblers in the UK today. However, if we are to understand that problem fully, we must remember that no man—or woman—is an island, and that each of those people is likely to be connected to family members who feel the destructive impact of problem gambling on their lives as well. Problem gambling goes beyond the problem gamblers themselves; it affects their families too, which means that the 450,000 figure can quickly increase to some 2 million.

In Committee, the hon. Member for Bradford South (Mr Sutcliffe) expressed concern about those with gambling addictions, and suggested that the Secretary of State for Health should look into the possibility of money from the gambling profession being set aside to help people with addictions. I am sure that many of us agree with that valuable suggestion, which served as another indication of the concern about the Bill that was felt by all members of the Committee. When we focus on remote gambling, we discover that while the average problem prevalence figure is 0.9%, the figure relating to online slot machines is over 9%. On a monthly basis, it shoots up even further, to over 17%. That problem will continue unless we establish robust legislation to deal with it.

Before the Bill was published, concern had already been expressed about discrimination in the provision of less credible care for online problem gamblers than for terrestrial online gamblers with respect to “self-exclusion”, which is one of the key measures to help problem gamblers. Problem gamblers have the option of going to a gambling provider and excluding themselves from the services of that provider for a fixed period such as six months. That works in practice, because, as with other addictions, while people have weak days, they also have strong days. On a strong day, problem gamblers will be able to get around the five betting shops in their town to exclude themselves and thus ensure that they are protected from accessing gambling from the place where they live for a full six months, during which time they can build up their defences, obtain help, and decide what they want to do when the self-imposed period of exclusion ends.

What is the problem with that? The key problem is that, while in an offline context there is a credible opportunity for problem gamblers to benefit from a key tool that has been developed for them, there is no such credible opportunity online. As I have said, it is quite possible for a problem gambler to self-exclude from all five betting shops in his town on a strong day, but the same is not true online. The problem gambler could self-exclude from five online gambling sites that he can access from his or her bedroom, but could still have access to hundreds of other sites from that bedroom. It would be physically impossible for the online gambler to self-exclude from all online gambling opportunities that are accessible to him in his bedroom.

In short, we offer the offline problem gambler a credible form of protection through self-exclusion, but deny it to the online gambler. I believe that that anomaly must be addressed, because it is not just at a time when providing a credible one-stop shop is technologically possible. A one-stop shop self-exclusion mechanism, as set out in new clause 14, would mean that people have only to self-exclude from online gambling once by registering with the Gambling Commission. The commission would keep a list of all those who had self-excluded, and all those in receipt of an online gambling licence from the commission would be required to respect the list. This idea, which has been backed by many academics, was discussed in Committee, but is worth repeating today.

Dr Sally Gainsbury, author of “Internet Gambling: Current Research Findings and Implications”, published by Springer in its SpringerBriefs in Behavioral Medicine, series 2012, states that “a significant limitation” of self-exclusion

“is the lack of collaboration between different online gambling sites and venues, so that excluded individuals may find it easy to gamble at another site or venue.”

She argues that the technology is available and points to its feasibility, particularly in the UK, owing to the current existing licensing conditions and code of conduct upheld by the Gambling Commission. In demonstrating that the provision of a one-stop shop facility is technologically possible, Dr Gainsbury highlights a program called VeriPlay.com, developed by Bet Buddy, which allows the secure exchange of anonymous data and has been successful in some parts of the world.

The hon. Member for Shipley (Philip Davies) referred to due diligence and the support across the House on this subject. I believe we have to start somewhere, and we should start here today. The bones might come from the House of Lords, but new clause 14 would give this House the opportunity to decide in what direction we want to go, and if we want to go in the direction of helping these problem gamblers and vulnerable people, new clause 14 would be a step in the right direction. The Bet Buddy system enables operators to check whether someone is on a centralised list of players who have self-excluded. Dr Gainsbury argues that collaborative efforts would help strengthen self-exclusion, and research presented to the Canadian-based Responsible Gambling Council in 2011 by British-based GamCare and the university of Salford, along with Bet Buddy, endorsed the proposal—further examples of support from within the gambling sector and also, I hope, from the Gambling Commission.

The arguments I have made for a one-stop shop in terms of non-discrimination hold at the moment, but with the proposal in the Bill to make people in the UK—and therefore problem gamblers in the UK—more aware of online gambling opportunities, the failure to provide a credible model of self-exclusion for those gambling online becomes much more serious. We already effectively discriminate against online problem gamblers in the care that we offer by providing them with a far weaker self-exclusion opportunity than that afforded to other problem gamblers. The Bill not only gives us an opportunity to put that right, but massively compounds the imperative for us to do so by introducing new arrangements that will make problem gamblers more aware of online gambling opportunities.

Given that online problem gambling has one of the higher problem prevalence figures, that one of the key accepted tools to help problem gamblers—self-exclusion —does not work as effectively online as it does in a terrestrial context, and that it is technologically possible to make good this shortcoming through the provision of a one-stop shop self-exclusion mechanism, the only possible reason for inaction can be a lack of political will within the House. I am sure that that is not the case. Given that we are proposing to make life even more difficult for online problem gamblers by making them more aware of online gambling opportunities and that we have the opportunity to introduce new compensatory measures to help them, a failure to act could only be the result of a terrible failure of moral will. Why is there a political and moral will to address online safety challenges in other contexts, but not in this context? Given that doing so would help thousands of online problem gamblers, what possible justification can there be for not backing new clause 14 as a step in that direction?

--- Later in debate ---

[Jim Shannon]

I thank the Minister for her response. Although we did not get the response we wanted, as the Minister acknowledged, she did make a commitment to consider pushing the industry in the direction in which we all want it to go. From the Government’s point of view, and that of the Opposition, I think that the overall consensus is that we need to help those who need help. That is where I and many others come from in relation to problem gamblers and vulnerable people.

With regard to new clause 14, I hope that when the Bill goes to the other place, with due diligence—to use that terminology—perhaps something might be added that this House can endorse. I would be glad to see such a move in the right direction. I would also be pleased to see money from dormant bank accounts going to help those with gambling addictions—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The debate is on Third Reading, not the clauses.

[Jim Shannon]

I understand that, Mr Deputy Speaker—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. It is not about understanding it; the point is that you have to talk about it. I am not too worried about the understanding.

[Jim Shannon]

I stand corrected, Mr Deputy Speaker. I understand it very well and I will now get it right.

When the Bill returns to the House, I hope that we will have an opportunity to address all those issues. I look forward to legislation that empowers problem gamblers and vulnerable people to get help when they need it most. If we can achieve that, we will have achieved a lot.

Question put and agreed to.

Bill accordingly read the Third time and passed.