(4 days, 15 hours ago)
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As always, it is a pleasure to serve under your chairmanship, Mrs Harris. I refer to my entry in the Register of Members’ Financial Interests. I thank the hon. Members for Halesowen (Alex Ballinger) and for Worthing West (Dr Cooper) for securing this debate.
I wish everyone a happy St George’s day. Perhaps the Minister for Creative Industries, Media and Arts is off celebrating St George’s day in his own Scottish way somewhere—I was looking forward to delivering that joke to him, so I am disappointed he is not here. Although I welcome the Minister covering this very important debate, I know there will be some confusion among the public about why no one from DCMS with direct responsibility for this policy area was available to respond. Hopefully, the Minister will still be able to answer some of the key questions on behalf of the Government before their complete collapse.
We all know that the Government are yet again distracted by their latest scandal in Downing Street, and that Labour MPs are preparing the runners and riders for their leadership contest; but we meet today to discuss gambling regulation at a very important juncture in terms of how we move forward with the regulated gambling industry in the UK. As we predicted would happen before Labour’s latest tax-hiking Budget, jobs are being lost and high street shops are closing, as we have already heard. Sponsorship for British sport is also being cut, and an illegal, dangerous black market continues to grow each week. Quite clearly, Labour did not properly vet the information they were being provided.
This is also a crucial time for the Gambling Commission. Major changes are happening at the top of the organisation and, as I understand it, it is deliberating on whether to move forward with controversial affordability checks despite major concerns from a range of stakeholders about their accuracy and, again, the unintended consequences of fuelling the illegal and dangerous black market. Today’s debate is therefore timely, and I have listened very carefully to contributions from hon. Members across the Chamber.
As always, there are a range of views. On the left, we have some who are more prohibitionist and view all forms of gambling through the prism of harm. On the right—thankfully not represented in the Chamber today—there are those who believe that party leaders should be allowed to promote their own crypto and pyramid schemes with no accountability. Then we have the rest of us, more in the middle ground, who are trying to find a sensible and pragmatic approach to regulation that provides protections and support for those suffering from addiction while recognising the regulated gambling sector’s contribution to jobs, the economy, British culture and sport.
As I have said in previous debates, I have no problem bashing the bookies; it is a British pastime between punter and bookmaker, and I am unashamedly pro-consumer. But as we are seeing now, the Government have inadvertently stacked the deck in favour of the illegal black market. In preparing for this debate, I was reminded of what gambling looked like when I was growing up in south-east London: those dark and dingy betting shops with beads covering the shop doors, and the wall of smoke that would occasionally escape, allowing some fresh air into the building.
While some of those small pens might have stayed in some shops, times have changed. The regulated industry has modernised, and technology has transformed how many people gamble across the country.
Alex Ballinger
The shadow Minister is talking about an historical example of a bookmaker’s. At that time, how many children and young people were exposed to gambling advertising? Is he happy with a Premier League weekend having 27,000 adverts that families might be watching?
That is an interesting point about how bookmakers operate. My grandfather was really keen on horseracing when I was growing up; I remember often standing in the corner of the betting shop while he had a gamble or watching horseracing on the TV. The hon. Member’s APPG has made an interesting distinction about the carve-out of the advertising ban that it has committed to; if I understand it correctly, the APPG believes that younger people or children do not watch horseracing, compared with football—is that the argument for why there is a carve-out?
Order. Mr Ballinger, please sit down. Shadow Minister, please speak through the Chair.
Thank you. Mr Ballinger, if you want to intervene, can you do it appropriately?
Alex Ballinger
The APPG recognise that horseracing and greyhound racing are much more dependent on gambling advertising than other industries; that is why we made that separation.
I thank the hon. Member for making that distinction; I understood it as being something to do with whether children watched racing. The point I was trying to make was that times have changed. When I worked in a shop—some 20-odd years ago, when I was a student—a strict rule was brought in to stop children being allowed inside the premises. There was a lot of discussion then about whether it was safer for a child to be just inside the door of a bookmaker’s or to be standing outside. That is probably not as big an issue today as it was then, but I remember that discussion being had circa 20 years ago. Times have changed, and how bookmakers operate has also changed.
The debate around gambling and gambling harms boils down to a simple but important question: how do we reduce harm from gambling without driving people into more dangerous spaces? Advertising, the subject of today’s debate, forms an important part of that discussion. Gambling, when properly regulated, is a legitimate leisure activity enjoyed by more than 20 million people across the United Kingdom every month. That averages out at more than 30,000 people in every constituency across the country. The overwhelming majority of those people gamble without harm.
The role of Government is to balance regulation for people who enjoy a flutter safely, while ensuring that those who need help can receive it as a matter of urgency. Government should not act as a heavy, puritanical hand prohibiting all avenues of fun. That is why the distinction between the regulated and unregulated market is so important. Advertising by UK-licensed operators is not a free-for-all, as some would have us believe; it is controlled and is subject to oversight by the anti-gambling commission and the Advertising Standards Authority, which has been strengthened significantly in recent years. That has resulted in some good progress: for example, I understand that the whistle-to-whistle ban has reduced children’s exposure to betting adverts during live sport by 97%. The Premier League will soon ban front-of-shirt gambling sponsors, and online campaigns are age-gated, with operators prohibited from using personalities with strong appeal to children. However, those regulations do not apply to those who act beyond the law in the black market.
The Government have been clear that there is little evidence of a causal link between exposure to advertising and problem gambling. Crucially, the evidence does not show that advertising drives participation. Advertising influences which brand people choose, not whether they gamble at all. That matters, because restricting the regulated sector too heavily will not remove demand; the Government will simply be redirecting it to the unregulated market, where harm becomes the norm. Independent analysis from WARC suggests that UK gambling advertising spend will reach around £1.9 billion this year, with half—between £800 million and £900 million, and increasing—already coming from unregulated operators.
We are approaching a tipping point. Close to half of all gambling advertising seen by UK consumers comes from operators that are not licensed in this country and can act beyond the law. It is the direction of travel that concerns me most: WARC’s research shows that while licensed operator spend has fallen, illegal and unregulated spend is growing sharply. That is a sign of a market shifting quickly and decisively, and we must be honest about what sits behind that shift. The Government have increased regulation on the legal sector, but done very little so far to stop the illegal black market.
While licensed operators are seeing their ability to advertise reduced, illegal operators are expanding aggressively, particularly online, and particularly aimed at children and younger people. Those unregulated operators do not follow the rules. They do not verify age; they do not offer safeguards such as deposit limits or self-exclusion; they do not contribute to treatment or research; they do not pay tax. Those companies actively market themselves as being outside the system, with “Not on GamStop”—a favoured slogan that is deliberately used to appeal to the most vulnerable. This is not a marginal issue. Up to 1.5 million people in Britain are estimated to be using these sites already, staking as much as £10 billion a year.
Today’s advertising frontline is not so much television as social media, streaming platforms and influencers. Around 62% of children report regularly seeing gambling-related content online on platforms such as YouTube, TikTok, Twitch and Instagram—I use some of those platforms myself, though I am not sure what Twitch is. What they see is not the regulated sector: they are seeing influencers who are paid to promote black market gambling sites—sites that would never be allowed to advertise through regulated channels and that offer inducements and access without safeguards. Among those young people who follow gambling content, nearly one in three report seeing an influencer advertising the products. The reality is that we have built a system that tightly regulates those who comply with the law, while those who do not are free to exploit the faster-growing parts of the media landscape.
We must be honest about the risk of getting this wrong. By clamping down further on regulated advertising without tackling illegal activity, we will not clean up this space. We will simply cede the territory to the illegal operators. We will make it harder for consumers to distinguish between safe and unsafe operators, pushing more people towards platforms that offer no protections at all. The Government’s priority must be enforcement in the spaces where harm is now most concentrated.
I will conclude by asking the Minister a series of specific questions that I hope she can answer or follow up in writing. First, will the Government bring forward proposals to place a clear duty on social media platforms to identify and remove illegal gambling advertising, particularly influencer-led promotion of unlicensed sites? Secondly, what steps are the Government taking against unlicensed operators targeting UK consumers online? Thirdly, can the Minister set out a timeline for action on unlicensed gambling sponsorship in sport, and will the Government go further to prevent UK clubs from entering into partnerships with operators that are not licensed in this country?