(1 week ago)
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I thank the right hon. Member for her question, and I will ensure that she receives a written response.
By bringing together industry, platforms, regulators and Government, we will identify ways to clamp down on illegal advertising. We hope to ensure that exposure to illegal gambling advertising is reduced, particularly for vulnerable individuals. The Gambling Commission also continues to engage with online platforms to support the removal of illegal gambling content, which remains an ongoing priority. An additional £26 million has also been allocated to the Gambling Commission across the next three years to increase investment, resources and capacity to tackle the illegal market.
More recently, we announced our intention to consult on banning sports sponsorship by unlicensed gambling operators. By reducing awareness of and exposure to unlicensed operators, such a ban would further protect vulnerable consumers from the unregulated illegal market.
It is important that we do what we can to ensure that all advertising is socially responsible and does not exacerbate harm. Where there is evidence to support it, the Government would like to see more action being taken to ensure that advertising does not adversely affect the young and vulnerable. In the coming months, we will continue to explore this alongside our wider work on reducing gambling-related harms.
I appreciate that the hon. Lady is covering for another Minister. However, I made the point in a previous debate that the Government seem to be saying that they are keen to reduce the harm to children from gambling and that they particularly recognise the issue of social media, which I raised in my speech today. Why do they not just back the Conservative party’s proposed ban on social media for under-16s?
As the hon. Member will know, we are currently consulting on measures to protect young people from online harms. He is aware of that work, which is continuing. Of course we want to protect children and young people, but we need to make sure that any measures we bring in will be effective.
We recognise that the regulatory framework must keep pace with technological change. That is why we are working with the Gambling Commission and the ASA to ensure that existing rules are applied to new and emerging channels. We are also clear that all policy and regulatory decisions must be made after considering a wide range of impartial, accurate and up-to-date research about the scale and impact of gambling advertising. We must ensure that our interventions are as impactful as possible.
As Members may be aware, last year we introduced the landmark statutory gambling levy, which has raised just under £120 million in its first year. This funding will be ringfenced solely for independent research into and prevention and treatment of gambling-related harms; 20% of the funding collected will be spent on research to strengthen the evidence base on gambling-related harms, which includes research on the impacts of gambling advertising. We will therefore consider next steps in the context of this strengthening evidence base.
Where appropriate, our approach will also include comparison with regulation in other jurisdictions. A number of suggestions were made, and examples have been given of the way in which other countries are doing this. However, just because a particular country has moved further than us on advertising restrictions, that does not mean that we should automatically attempt to match it. We should instead be guided by the lessons that such jurisdictions offer, and we should consider what has and has not worked.
An important point that I want to stress is that if we decide to encourage or take further action on advertising, we want to do so in a way that is supported by the evidence available. We should avoid putting in place too many restrictions that could have unintended consequences. Where standards can be raised in a careful way, we should look to do that. The Government remain open-minded about how that can be done, and we will reflect on the points that have been raised today, including in the important contributions from the hon. Member for Harpenden and Berkhamsted (Victoria Collins), on behalf of the Liberal Democrats, and from the hon. Member for Old Bexley and Sidcup.
I want to address a couple of questions that hon. Members have raised. The hon. Member for Old Bexley and Sidcup raised concerns about the introduction of financial risk assessments. FRAs of online gambling customers are a widely supported principle and a key consumer protection measure from the White Paper. We are aware of concerns about so-called operator affordability checks; new financial risk checks would replace those and are better for customers and for racing. The Department has worked closely with the Gambling Commission throughout, to ensure that FRAs remain in line with the clear principles in the White Paper. If the Gambling Commission decides to introduce FRAs, it will work with operators on guidance. That guidance will ensure a proportionate approach when deciding how to manage consumers where financial risk is present and the customer continues to spend at a high level.
The hon. Member for Old Bexley and Sidcup also asked a number of specific questions. I will ensure that, where I have not already dealt with them in my speech, he receives a response in writing.
On financial risk assessments, also known as affordability checks, will the Minister pass on a query relating to the gambling White Paper? My understanding from the previous Gambling Minister and from the then shadow Gambling Minister, who is now the Sports Minister, was that the checks could go ahead only if they were truly frictionless, hence the pilot. Can the Government confirm whether the Gambling Commission has the authority to proceed if that is not the will of Parliament?
I can tell the hon. Member that FRAs have been piloted to ensure that they are genuinely frictionless before implementation and that they are targeted at those showing signs of harm, rather than simply those spending high amounts safely. The FRA pilot found that only 3% of all gambling accounts would be subject to an FRA where their losses were significant enough to warrant it, and 97% of checks would be frictionless without any change to customer experience. Nevertheless, if there is further information that the hon. Member requires, I am sure he will follow that up.
I conclude by reiterating our commitment to working with a wide range of stakeholders, including industry, on this issue. We will continue to do what we can to ensure that gambling advertising, wherever it appears, is socially responsible and does not exacerbate the risks of gambling-related harm. I am grateful for the contributions from all hon. Members today; it has been a genuinely interesting and constructive discussion. The Government look forward to continuing this work in the months ahead.