Asked by: Mark Tami (Labour - Alyn and Deeside)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps she is taking to ensure that political donations made to the Conservative Party by managing parties of CVC Capital, the owner of Sisal S.p.A Group do not influence the Government's approach to the Fourth National Lottery Licence.
Answered by Chris Philp - Shadow Home Secretary
The competition for the next licence to run the National Lottery is run by the Gambling Commission. Government is not involved in selecting the winning bid. The Commission has received four final applications to run the licence. This is the highest number of applications received since the first licence was awarded in 1994 and reflects the strength of the competition, and the market’s recognition of the opportunity which exists.
While the competition remains on-going it is not appropriate to comment on whether an individual, or organisation, has participated in any stage of it. We have no plans to publish any correspondence received by the Department from either CVC Capital Group or Sisal partners.
As part of the Department’s public appointments process, applicants to public bodies roles, including to the Gambling Commission’s board, must declare in their application any private interests which would result in actual, potential or perceived conflicts of interest. On taking up an appointment to the Gambling Commission, Commissioners are required to adhere to principles in Nolan Principles and the Gambling Commission’s own Code of Conduct for Commissioners. Further to this:
All Commissioners are required to declare interests at least annually, and ensure in year changes are notified as necessary;
Their interests are published on the Gambling Commission’s website;
Declarations of interest are sought at the beginning of every board and committee meeting; and
When an interest is declared, it is reviewed by the Head of Governance and the Chair of the Commission to identify if any action is required as a result (up to and including asking my Department to terminate the appointment/asking them to terminate their interest).
The purpose of the National Lottery, as set out in legislation, is to raise monies for the four good cause pillars. The National Lottery must be run by a single purpose vehicle, with controls in place to ensure that proceeds cannot be diverted to another area of the operator’s business. The mechanism by which proceeds are divided between good cause returns and profits will be set out in the licence while decisions about the use of their profits will be a matter for the operator.
Defined benefit pension schemes are an important source of retirement income for many people in the UK, and the Government is committed to ensuring that they are protected. Whilst it is not appropriate for Ministers to comment on the arrangements of particular pension schemes, the Pensions Regulator monitors private Defined Benefit pension schemes and has the powers to act where they believe a breach of the law has taken place. The Government is committed to strengthening the powers at the disposal of the Regulator and new sanctions, within the Pension Schemes Act 2021, will strengthen the punishment for irresponsible management of pension schemes.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment his Department has made of the potential merits of strengthening measures to protect lottery players from harm as part of the Fourth National Lottery licence.
Answered by John Whittingdale
The Government and the Gambling Commission share statutory duties to ensure that the National Lottery is run with all due propriety and that the interests of players are protected.
The competition for the fourth National Lottery licence is being run by the Gambling Commission. The next licence will see changes to how the National Lottery is licensed and regulated. It has been designed by the Commission to enable the next licensee continually to develop and adapt its operations in a safe and responsible way, to meet the needs of players in 2023 and beyond.
The licensee will be held fully accountable for protecting players. Through the competition process, the successful applicant will have demonstrated high standards of player protection, including on prevention of underage or excessive play, and the Commission will hold them accountable for their commitments during the licence period. The Commission will retain strong enforcement powers and, where necessary, will not hesitate to use them.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what process his Department plans to put in place to ensure that lottery players are better protected as part of the Fourth National Lottery licence.
Answered by John Whittingdale
The Government and the Gambling Commission share statutory duties to ensure that the National Lottery is run with all due propriety and that the interests of players are protected.
The competition for the fourth National Lottery licence is being run by the Gambling Commission. The next licence will see changes to how the National Lottery is licensed and regulated. It has been designed by the Commission to enable the next licensee continually to develop and adapt its operations in a safe and responsible way, to meet the needs of players in 2023 and beyond.
The licensee will be held fully accountable for protecting players. Through the competition process, the successful applicant will have demonstrated high standards of player protection, including on prevention of underage or excessive play, and the Commission will hold them accountable for their commitments during the licence period. The Commission will retain strong enforcement powers and, where necessary, will not hesitate to use them.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what provisions his Department plans to put in place to protect lottery players from harm as part of the Fourth National Lottery licence.
Answered by John Whittingdale
The Government and the Gambling Commission share statutory duties to ensure that the National Lottery is run with all due propriety and that the interests of players are protected.
The competition for the fourth National Lottery licence is being run by the Gambling Commission. The next licence will see changes to how the National Lottery is licensed and regulated. It has been designed by the Commission to enable the next licensee continually to develop and adapt its operations in a safe and responsible way, to meet the needs of players in 2023 and beyond.
The licensee will be held fully accountable for protecting players. Through the competition process, the successful applicant will have demonstrated high standards of player protection, including on prevention of underage or excessive play, and the Commission will hold them accountable for their commitments during the licence period. The Commission will retain strong enforcement powers and, where necessary, will not hesitate to use them.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what discussions he has had with the Gambling Commission on the Fourth National Lottery licence in relation to harm prevention and better protecting customers.
Answered by John Whittingdale
The competition for the fourth National Lottery licence is being run by the Gambling Commission. I have regular conversations with the Commission on their responsibilities in relation to the National Lottery including progress on the fourth licence competition.
The Licensee will be held fully accountable for protecting players. The successful applicant will have demonstrated high standards of player protection, including prevention of underage or excessive play, and the Commission will hold them accountable for their commitments during the licence period. The Commission will retain strong enforcement powers and, where necessary, will not hesitate to use them.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment he has made of the potential merits of requiring regular data reporting from the licensee as part of the Fourth National Lottery licence agreement.
Answered by John Whittingdale
The competition for the fourth National Lottery licence is being run by the Gambling Commission. The next licence will see changes to how the National Lottery is licensed and regulated.
The licensee will be required to provide a range of information to the Commission as part of its licence requirements, which will be used to hold them accountable for their performance during the licence period. The Commission will have the right to request additional information should this be necessary, including in relation to compliance risks or issues.
Asked by: Alex Sobel (Labour (Co-op) - Leeds Central and Headingley)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, which companies have been shortlisted to operate the third licence for the National Lottery.
Answered by John Whittingdale
The competition for the third National Lottery licence was run by the National Lottery Commission, which was merged with the Gambling Commission in October 2013. The Commission announced the outcome of the competition on 7th August 2007.
The Commission received two strong applications for the third licence, from Camelot Group plc and Sugal & Damani UK Ltd. Both bids met the seven demanding Required Standards outlined by the Commission in the Invitation to Apply (ITA). Camelot Group plc was selected as the Preferred Bidder and was awarded the third licence to start from February 2009. Camelot Group plc were considered best able to maximise returns to good causes over the term of the Licence. The published ‘Statement of Reasons’ which discusses the outcome in more detail can be found through the National Archives website.
The Gambling Commission launched the competition for the fourth National Lottery licence on 28 August 2020. The next licence comes into force in August 2023. The Commission’s priority is to run a fair and robust competition and, given that the competition is underway, it would not be appropriate to name, or comment on, organisations that are participating in the competition. The preferred applicant for the fourth licence is expected to be announced at the end of the year.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps his Department plans to take with the Gambling Commission to ensure that the successful fourth National Lottery competition bidder delivers on undertakings made during the bid process.
Answered by John Whittingdale
The Gambling Commission is responsible for designing the fourth National Lottery Licence, running the competition, selecting the winning application, and managing the operator in-licence.
DCMS and the Gambling Commission share three statutory duties: to ensure that the National Lottery is run with all due propriety, to protect players’ interests, and - subject to those - to maximise returns to good causes. It is upon these duties that the Commission has designed the evaluation criteria for the Fourth Licence competition. Applicants are free to innovate within the legal framework. The next licence will give the operator greater autonomy to make strategic decisions, providing the licensee with the flexibility to innovate while ensuring they meet high standards of player protection and propriety.
The winning applicant will be required to sign a number of agreements with the Gambling Commission to ensure that they deliver on the proposals in their bid.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment his Department has made of the adequacy of the criteria in place to ensure the Fourth National Lottery Licence competition provides opportunities for innovation and creativity.
Answered by John Whittingdale
The Gambling Commission is responsible for designing the fourth National Lottery Licence, running the competition, selecting the winning application, and managing the operator in-licence.
DCMS and the Gambling Commission share three statutory duties: to ensure that the National Lottery is run with all due propriety, to protect players’ interests, and - subject to those - to maximise returns to good causes. It is upon these duties that the Commission has designed the evaluation criteria for the Fourth Licence competition. Applicants are free to innovate within the legal framework. The next licence will give the operator greater autonomy to make strategic decisions, providing the licensee with the flexibility to innovate while ensuring they meet high standards of player protection and propriety.
The winning applicant will be required to sign a number of agreements with the Gambling Commission to ensure that they deliver on the proposals in their bid.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty's Government, further to the Government Response to the House of Lords Gambling Industry Committee Report: Social and Economic Impact of the Gambling Industry, published on 8 December, what plans they have to mandate a ban on all gambling transactions via credit cards.
Answered by Baroness Barran - Shadow Minister (Education)
In April this year, new licensing conditions came into effect which banned both online and land-based gambling operators from accepting payments from credit cards (including via e-wallets) for gambling services. National Lottery products already could not be purchased with a credit card online.
National Lottery and society lottery products can still be purchased via credit cards in retailers. Following the Gambling Commission’s consultation on the use of credit cards for gambling, requiring retailers to identify and block credit card payments for lottery products was seen as disproportionate since they are often purchased alongside other items as part of a wider shop. National Lottery retailers are also trained in preventing excessive play, and lottery products are consistently shown to be associated with lower problem gambling rates than commercial gambling products.