Financial Risk Checks for Gambling

Kenny MacAskill Excerpts

Monday 26th February 2024 Westminster Hall

[Kenny MacAskill (East Lothian) (Alba)]

It is a pleasure to serve under your chairmanship, Sir George.

As is clear from the speeches that have been made so far, there are two aspects to this debate: the question of the regulation of gambling, and the question of the protection of horseracing. The first, I think, requires action, because there is a significant social problem, which is a point that I will come on to and that others, especially the hon. Member for Neath (Christina Rees), made so eloquently.

The second question is that of a debate between the gambling industry and horseracing. We have to differentiate there. After all, the gambling industry, or much of it, is now online, and much of it is now based in Gibraltar, so it is not even paying taxes, whereas the horseracing industry is indigenous, although it is also partly—this inference was made about horseracing—funded by the gambling industry. Yes, that is to some extent a historical anachronism, but it was no doubt done deliberately so that people would not see gambling going to the black market, with other unregulated aspects, whether that was pitch and toss, dogfights or illegal boxing matches. That ensured that a revenue stream went from gambling into horseracing, and that is fundamental.

As the hon. Member for Tewkesbury (Mr Robertson) said correctly, people might think that horseracing is flush. It is not. I, along with others, declare an interest in having horseracing within my constituency, because I represent Musselburgh. Musselburgh has had its challenges, Musselburgh had to be sold and has now been bought by Chester.

At one stage, it even looked like there might not be a buyer, because it is not as if people are lining up as they are for English Premier League—or even Scottish Premiership—football teams. There were redundancies there—I had to intervene and speak to the management about them—but they were done reluctantly, and we have had to accord to that. There are challenges in that sector. Some of this—this is the subliminal aspect—is about the gambling industry reducing the amount of money that it puts into horseracing, because it does not have the same involvement in funding football or anything else, other than the money that it makes from it.

Returning to the primary issue, there is a problem with gambling. We must recognise that people suffer. I am not some libertarian who thinks it is all just free market, with people deciding according to their free will. It is a social problem, exactly the same as alcohol and drugs. We do not un-regulate them and say, “Consume what you like.” We ensure that we know what the product is, and supervise, tax and regulate it. We can argue—I certainly do—that we sometimes go too far on drugs and not far enough on alcohol, but we must ensure that we regulate.

We must recognise that gambling has transformed. I am a child of the ’60s, when gambling was basically done in a bookies. They were foreboding and intimidating places where working men—perhaps in a flat cap—went, where women would not be seen, and that respectable men would probably not wish to be seen going into. They kept very limited hours. When I was young, they always seemed quite intimidatory. I now have a flat in Dunbar, and I can look across the high street and see a bookies. It is open early in the morning until late at night. People of all ages, genders, ethnicities go in—far too many, I must say, much as I am not opposed to people enjoying a flutter.

The whole nature of the industry has changed. As Justice Secretary in Scotland, I remember being briefed by Dr Reith from Glasgow, a world expert in gambling and how gambling has changed. People can now literally lose not just their shirt, but their house overnight if they have multiple credit cards, so there must be regulation. The nature of who gambles has also changed, because ethnic minorities who might not have gone into the working-class, working man’s bookies are now going elsewhere. I remember hearing that in Scotland we had significant difficulties with Polish people and eastern Europeans who were working in the casinos. They socialised in the casinos and therefore developed a gambling problem, because that was where they hung about. Since women and other people who would not have otherwise have gone into a bookies are doing so, we must target and address gambling. We must address the demand, which is why we must look at regulating the sponsorship of football teams and some of the television advertisements that are basically pushed in our faces—we want to watch the football but are inconvenienced by being told to to cash in by betting on the number of corners, and all these things.

That is entirely separate from horseracing. Yes, gambling is an inextricable part of horseracing. If people go to a horserace, they wish to gamble. Some will probably gamble too much and regret it, but most will not. It is a day out in Musselburgh, much as it is in other constituencies. It is an event for people; the ladies day at all racecourses is very colourful, with all hats, dresses and whatever else. People come from far and wide, and it is part of the local economy. I said there had been redundancies, but it still provides employment there and for the hotels, guesthouses and hostelries on race days. People make money, and there is a supply chain of those who provide for the horseracing industry. If we cripple it, we face not only the risk that the likes of Musselburgh will close, but the risk that people will continue to watch and bet on races, albeit those in Ireland, France, Hong Kong or wherever else, as I think the hon. Member for Tewkesbury said. That is why we must protect it and get the balance right.

As Justice Secretary in Scotland, I remember bringing in quite firm legislation on the sale of alcohol. I think it was correctly done. Equally, I remember being criticised at some stage because I gave the licence back to Murrayfield stadium. People asked, “How can you be cracking down on alcohol and yet allow an alcohol licence in Murrayfield?” I answered that we are not against alcohol, in exactly the same way that we are not against gambling; we are about ensuring that it is carried out in a safe and secure manner, that it is regulated, and that people can be protected—sometimes even from themselves. That is why I believe action has to be taken on these social problems. We are our brother’s and our sister’s keeper.

The result on Saturday may not have gone the way most Members here, other than the two of us from Scotland, wanted, but the match will have been enjoyed. It was better that people went to the stadium and had a few drinks consumed safely and under supervision, rather than sitting in a park drinking cans or bottles and then rushing to the game late. That is why, in alcohol legislation in Scotland, when I was Justice Secretary we were always very supportive of the on-trade. We much preferred people to go to a public house where the alcohol industry wants to sell a premium product—at a premium price for them—in a manner that is safe and secure and from which they can benefit. That is much better than people being sold almost unlimited supplies of high-strength, low-price alcohol from supermarkets or elsewhere.

There are corollaries with gambling. What we have to do is stop people losing their shirt, never mind their home, through games of chance or puggy machines—or whatever sophisticated name they have now—sitting in betting shops. People can go online and, as I said, get a credit card and literally see their savings disappear. What we cannot do is undermine where people can go and have a flutter and enjoy themselves as part of a day out.

[Philip Davies]

The hon. Gentleman is making a very interesting speech. May I refer him to the comments made by the hon. Member for St Helens North (Conor McGinn)? He made it clear that without the levy income that horseracing generates from online betting, Musselburgh and other racecourses would not exist for having a nice day out and a bet at the ring. The income the horseracing industry gets from online gambling is absolutely critical for horseracing to continue in this country.

[Kenny MacAskill]

I said at the outset that I am conscious that Musselburgh and other racecourses have to get income from the gambling industry. If people now gamble more online as opposed to going to the betting shop, even the one opposite me in Dunbar, that has to be accepted. We have to separate the gambling that is being sold in every shape or form, as it is, and entertainment, because that is what horseracing is. Gambling is a legitimate part of it and sustains it. Obviously, the industry seeks to make more money out of encouraging people to bet and gamble on football; it does not put the same money in, except in terms of shirt advertising or whatever else, and it does not benefit the grassroots game or any club. The Government have to make sure they take the necessary action against gambling, not those who are at the turf in such places.

I fully accept the point made by the hon. Member for Shipley that people now place bets not by going into a betting shop, but on their phone—not even on their computer. However, we should provide protection for what is an industry. It may be an anachronism; one could argue that other sports should get the benefit, but we are where we are, and we have to recognise that as a society. On that basis, we have to differentiate horseracing, which needs to be protected and which we want to encourage people to participate in because their gambling will be supervised, moderated and part of a culture, and other gambling—as I said, it is like drinking in a pub as opposed to drinking in a public park.