Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the financial services sector to help prevent harmful gambling.
Answered by John Glen
The Government recognises the important role banks and other financial services can play in supporting efforts to tackle gambling related harm. On gambling blocks, I am pleased that many banks have acted to offer their customers the option to block debit card transactions to licensed gambling operators, which is estimated to now be available for approximately 90% of UK current accounts.
The Government welcomes this progress and continues to work together with industry to identify what more can be done in this area. As such, I will shortly co-convene a roundtable with the Minister for Technology and the Digital Economy to look at opportunities for additional progress which further support UK consumers.
The Government is reviewing the Gambling Act 2005 to make sure it is fit for the digital age. This is taking a close look at the effectiveness of existing protections for gamblers in preventing harm and how these could be improved. The Department for Digital, Culture Media and Sport is considering the evidence carefully and aim to publish a white paper outlining any conclusions and proposals for reform in due course.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will require gambling firms to disclose their bank account details on a central registry to empower banks to extend gambling blocks to bank transfers made to gambling companies.
Answered by John Glen
The Government recognises the important role banks and other financial services can play in supporting efforts to tackle gambling related harm. On gambling blocks, I am pleased that many banks have acted to offer their customers the option to block debit card transactions to licensed gambling operators, which is estimated to now be available for approximately 90% of UK current accounts.
The Government welcomes this progress and continues to work together with industry to identify what more can be done in this area. As such, I will shortly co-convene a roundtable with the Minister for Technology and the Digital Economy to look at opportunities for additional progress which further support UK consumers.
The Government is reviewing the Gambling Act 2005 to make sure it is fit for the digital age. This is taking a close look at the effectiveness of existing protections for gamblers in preventing harm and how these could be improved. The Department for Digital, Culture Media and Sport is considering the evidence carefully and aim to publish a white paper outlining any conclusions and proposals for reform in due course.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that all banks provide a gambling block to help prevent gambling harm.
Answered by John Glen
The Government recognises the important role banks and other financial services can play in supporting efforts to tackle gambling related harm. On gambling blocks, I am pleased that many banks have acted to offer their customers the option to block debit card transactions to licensed gambling operators, which is estimated to now be available for approximately 90% of UK current accounts.
The Government welcomes this progress and continues to work together with industry to identify what more can be done in this area. As such, I will shortly co-convene a roundtable with the Minister for Technology and the Digital Economy to look at opportunities for additional progress which further support UK consumers.
The Government is reviewing the Gambling Act 2005 to make sure it is fit for the digital age. This is taking a close look at the effectiveness of existing protections for gamblers in preventing harm and how these could be improved. The Department for Digital, Culture Media and Sport is considering the evidence carefully and aim to publish a white paper outlining any conclusions and proposals for reform in due course.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential effect of new bank transfer based payment methods offered by gambling providers on the efficacy of gambling transaction blocks as a tool to support people struggling with gambling harms.
Answered by John Glen
The Government has made no such assessment in relation to the effect of new bank transfer based payment methods. However, licensed gambling operators are only permitted to use payment methods where they are able to ensure they are compliant with all Gambling Commission licence conditions and requirements, including anti-money laundering and safer gambling measures.
The Government also recognises that the financial services industry plays an important role in helping their customers monitor and manage their gambling spending, including by offering gambling transaction blocks. In recent years there has been considerable voluntary progress in this area by the industry, with almost all the largest UK banks, as well as the larger digital banks, now offering gambling transaction blocks for debit and credit card transactions.
The Government welcomes this progress and continues to work together with industry to identify what more can be done in this area. As such, I will soon be hosting a roundtable with the financial sector to discuss what action has taken place to date on this issue and look at opportunities for additional progress which further support UK consumers. This will include looking at wider payment methods.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty's Government what discussions they have had with (1) the owners and management of Football Index, and (2) individuals affected by the collapse of Football Index.
Answered by Baroness Barran - Shadow Minister (Education)
The government is taking the collapse of BetIndex Ltd (the operators of Football Index) and the concerns of those affected by this very seriously. We have heard from hundreds of individuals affected by these events in recent weeks, and on 20 April we announced an independent review of the regulation of the Football Index product. This review is intended to take an objective look at the decisions and actions of the Gambling Commission and any other relevant regulators, to provide a clear account of how the company’s activities were regulated, identify if there are potential areas for improvement and inform our Review of the Gambling Act 2005.
The Gambling Commission licensed BetIndex Ltd in 2015 and is responsible for ensuring that gambling operators comply with the gambling legislation and the conditions and codes of practice attached to their operating licences. The activities regulated by the Financial Conduct Authority are primarily set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order (the RAO). The RAO contains the financial services activities, known as ‘regulated activities’, that require FCA authorisation before firms or individuals can carry them out. BetIndex was not authorised by the FCA.
The Commission is continuing its regulatory investigation into BetIndex Ltd and administration proceedings are ongoing. Our independent review is separate to those processes, and will be carried out and report in a way which will not compromise them. The government has not had discussions with BetIndex’s owners and management.
A Written Ministerial Statement on Regulation of Football Index was published on Tuesday 20 April 2021. It is publicly available here: https://questions-statements.parliament.uk/written-statements/detail/2021-04-20/hcws929
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty's Government what were the responsibilities of the (1) Financial Conduct Authority, and (2) Gambling Commission, in regulating Football Index.
Answered by Baroness Barran - Shadow Minister (Education)
The government is taking the collapse of BetIndex Ltd (the operators of Football Index) and the concerns of those affected by this very seriously. We have heard from hundreds of individuals affected by these events in recent weeks, and on 20 April we announced an independent review of the regulation of the Football Index product. This review is intended to take an objective look at the decisions and actions of the Gambling Commission and any other relevant regulators, to provide a clear account of how the company’s activities were regulated, identify if there are potential areas for improvement and inform our Review of the Gambling Act 2005.
The Gambling Commission licensed BetIndex Ltd in 2015 and is responsible for ensuring that gambling operators comply with the gambling legislation and the conditions and codes of practice attached to their operating licences. The activities regulated by the Financial Conduct Authority are primarily set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order (the RAO). The RAO contains the financial services activities, known as ‘regulated activities’, that require FCA authorisation before firms or individuals can carry them out. BetIndex was not authorised by the FCA.
The Commission is continuing its regulatory investigation into BetIndex Ltd and administration proceedings are ongoing. Our independent review is separate to those processes, and will be carried out and report in a way which will not compromise them. The government has not had discussions with BetIndex’s owners and management.
A Written Ministerial Statement on Regulation of Football Index was published on Tuesday 20 April 2021. It is publicly available here: https://questions-statements.parliament.uk/written-statements/detail/2021-04-20/hcws929
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions (a) he and (b) officials of his Department have had with (i) the banking sector and (ii) financial regulators on bank-based gambling blocks.
Answered by John Glen
Government ministers and officials regularly engage with the financial services regulators and financial services industry on a number of issues.
The Government recognises the value in voluntary gambling blocks to allow gamblers to self-exclude themselves from making payments to gambling operators. In February 2019, the then DCMS Secretary of State held a roundtable with UK banks, during which the Government set out the merits of gambling blocks.
Since then, there has been considerable progress in this area. Since April 2020, licensed gambling operators in the UK have been prohibited from accepting credit card payments and such payments have been blocked by the largest UK banks. For debit cards, almost all of the largest UK banks, as well as the larger digital banks, now have voluntary gambling block features on their debit cards. This means that consumers have considerable market choice in this area and can choose a current account that has the right features for them.
Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of further regulatory controls by the Financial Conduct Authority to prevent organisations from promoting their products as inherently based around a share index as opposed to other forms of entity such as gambling platforms.
Answered by John Glen
The Financial Services and Markets Act 2000 (FSMA) prevents the communication of invitations or inducements to engage in investment activity or claims management activities (otherwise known as financial promotions) unless the communication is made or approved by an authorised person, or subject to an exemption. The Financial Conduct Authority (FCA) has powers under FSMA to make rules concerning the standards financial promotions must meet. Controlled activities in scope of the financial promotions regime are set out in legislation.
The advertisement of any activities which are not controlled activities is regulated by the Advertising Standards Authority. FSMA also specifies that certain regulated activities can only be carried out by authorised or exempt persons. Offering contracts and/or products with the purpose of securing profit or avoiding loss by reference to fluctuations in an index is a regulated activity and therefore can only be carried out by such persons. Gambling platforms are regulated by the Gambling Commission which requires gambling platforms to comply with Advertising Codes administered by the Advertising Standards Authority.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the Department of Health and Social Care:
To ask Her Majesty's Government what assessment they have made of the finding of the study in the Nature Human Behaviour journal The association between gambling and financial, social and health outcomes in big financial data, published on 4 February, that an individual is more likely to become a heavy gambler in a period of six months than to go from heavy gambling to abstention; and what assessment they have made of the effectiveness of existing gambling treatment programmes.
Answered by Lord Bethell
We have made no such assessment. Public Health England is currently undertaking an evidence review on the prevalence, determinants and harms associated with gambling, and the social and economic burden of gambling-related harms. The review is expected to be completed in March 2021.
The NHS Long Term Plan includes a commitment to open 15 specialist problem gambling clinics by 2023/24. As these services expand, NHS England will continue to explore how to make best use of existing treatment models to help problem gamblers.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what recent estimate the Government has made of the proportion of people who gamble who are deemed to be problem gamblers; what financial contribution the Gambling sector has made to support problem gamblers; and if he will make a statement.
Answered by Nigel Huddleston - Shadow Secretary of State for Culture, Media and Sport
Combined Health Survey data for 2016 estimated the rate of problem gambling amongst adults in Britain who had gambled in the past year to be 1.2%. The 2018 Health Survey for England estimated a problem gambling rate of 1% amongst adult past-year gamblers.
Gambling operators licensed by the Gambling Commission are required to make a contribution to fund research, prevention or treatment of problem gambling. The Gambling Commission publishes a list of approved recipients of these donations, and will soon publish its first set of annual data detailing the value of donations each has received. Most operators choose to give to the charity GambleAware, which received more than £10 million in donations during the 2019/20 financial year.
In July 2019, the government secured a commitment from five large operators for a tenfold increase in their contributions to the research, prevention and treatment of problem gambling over four years, rising from 0.1% to 1% of gross gambling yield. This included a commitment to spend £100 million on treatment over this period. In June 2020 it was announced that GambleAware would use these funds to expand existing treatment services. Industry body the Betting and Gaming Council has set out a planned schedule for donations which will see combined contributions from those operators involved in the commitment rise to £5 million in the financial year 2020/21, £10 million in 2021/22, £25 million in 2022/23, and £35 million in 2023/24, with an additional £25 million to be spread across the financial years 2021-23.
GambleAware is an independent charity which commissions a wide network of gambling-specific treatment services including a specialist NHS gambling clinic in London and the NHS Northern Gambling Service. Its forthcoming Strategic Commissioning Plan, due to be published in April 2021, will set out its objectives for commissioning treatment services over the next five years. It will commision additional treatment provision to complement NHS services, which are also being scaled up as part of the NHS Long-Term Plan. Up to 14 new specialist NHS gambling clinics are planned to open by 2024, with three already accepting patients. The Department for Health and Social Care (DHSC) remains committed to the expansion and alignment of existing treatment provision for gambling-related harms, and continues to work collaboratively with the NHS and GambleAware to ensure effective use of the additional £100 million of industry funding allocated for treatment over the next 4 years.
The government launched its Review of the Gambling Act 2005 on 8 December with the publication of a Call for Evidence. As part of the wide scope of that Review, the government has called for evidence on the most effective means of recouping the regulatory and societal costs of gambling from operators.