Gambling Act Review White Paper

With permission, Madam Deputy Speaker, I would like to make a statement about the Government’s proposals for gambling reform.

Gambling is a hugely popular pastime, which has been part of our British life for centuries. Ours has always been a freedom-loving democracy where people are entitled to spend their money how they please and where they please, and millions choose to spend some of their hard-earned money on the odd bet on a match or a race without any problems. This popularity has seen our betting companies balloon in size and become big contributors to both our economy and, in the taxes they provide, to our public services.

But, with the advent of the smartphone, gambling has been transformed: it is positively unrecognisable today, in 2023, from when the Gambling Act was introduced in 2005. Temptation to gamble is now everywhere in society, and while the overwhelming majority is done safely and within people’s means, for some the ever-present temptation can lead them to a dangerous path. When gambling becomes addiction, it can wreck lives: shattered families; lost jobs; foreclosed homes; jail time; suicide. These are all the most extreme scenarios, but it is important to acknowledge that, for some families, those worst fears for their loved ones have materialised: parents like Liz and Charles Ritchie, whose son, Jack, took his own life while travelling in Hanoi after years of on-off addiction. Gambling problems in adults have always been measured in terms of money lost, but we cannot put a cost on the loss of dignity, the loss of identity and in some cases the loss of life it can cause.

We need a new approach that recognises that a flutter is one thing, but unchecked addiction is another. Today we are bringing our pre-smartphone regulations into the present day with a gambling White Paper for the digital age.

Before I go into the details of how we remove some of the blind spots in the system, I pay tribute to my right hon. Friends the Members for Croydon South (Chris Philp) and for Maldon (Sir John Whittingdale) and my hon. Friends the Members for Mid Worcestershire (Nigel Huddleston), for Folkestone and Hythe (Damian Collins) and for Sutton and Cheam (Paul Scully), as well as my predecessors my right hon. Friends the Members for Hertsmere (Oliver Dowden), for Mid Bedfordshire (Ms Dorries) and for Chippenham (Michelle Donelan), who have all led the work at various stages, and in particular the Minister for sport, gambling and civil society, my right hon. Friend the Member for Pudsey (Stuart Andrew), who has driven this work in government over recent months. There have also been some outstanding contributions to the debate from individual Members of this House, including my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), my hon. Friends the Members for Tewkesbury (Mr Robertson), for Shipley (Philip Davies), for Stoke-on-Trent North (Jonathan Gullis), for Stoke-on-Trent South (Jack Brereton) and for Stoke-on-Trent Central (Jo Gideon), and the hon. Members for Swansea East (Carolyn Harris), for Inverclyde (Ronnie Cowan) and for Sheffield Central (Paul Blomfield), and from the other place.

The proposals encapsulated in our blueprint draw on that knowledge and combine it with the best available evidence and insights in the 16,000 submissions received in response to our call for evidence. That is what this White Paper will deliver, with proposals for reform that cover six key areas. These proposals build on our strong track record of acting in punters’ interests through measures such as: cutting stakes on fixed odds betting terminals in 2019; banning credit card gambling and reforming online VIP schemes in 2020; introducing new limits to make online slots safer in 2021; and upgrading rules on identifying and intervening to protect people showing signs of harm in 2022.

First, we want to tackle some of the challenges unique to online gambling. Campaigners have told me that one element that differentiates problem gambling from many other forms of addiction is that it often takes place in secret, so we will force companies to step up their checks on when losses are likely to be unaffordable or harmful for punters. Companies must already intervene when they know that a customer is spending vast sums, but this change will better protect those least able to afford even small losses. We also plan to bring online slots games more into line with bricks-and-mortar equivalents by introducing a stake limit on online slots of between £2 and £15, subject to consultation.

Secondly, we know that many addicts find that each time they break free from the temptation to gamble, they are drawn back into the orbit of online companies with the offer of a free bet or some free spins. To help to stop problem gamblers being bombarded, the Gambling Commission has beefed up its rules on online VIP schemes—which has already resulted in a 90% reduction in the number of those schemes—and will now consult on ensuring that bonus offers are not being deployed in ways that only exacerbate harm.

That brings me to the third item, which is our regulator. We can all agree that we need a robust, data-savvy and proactive regulator that can stand up to the giant companies that it regulates, so my Department will ensure that the Gambling Commission has the appropriate resources to support this work and deliver the commitments in the White Paper. No one should be denied an innocent flutter, but the public should not have to bear the cost of treatment when a punter becomes an addict. One important element that will be introduced—backed by campaigners and also by many in the House—is a statutory levy to turn the tables on problem gambling, requiring gambling companies to fund more groundbreaking research, education and treatment.

Fourthly, we need to redress the power imbalance between punters and gambling companies when things go wrong. People who find that they have lost out owing to operator failures need to know that all is not lost. We will work with industry and the Gambling Commission to create a non-statutory ombudsman who will give customers a single point of contact.

I know that the fifth element—doing more to protect children—unites the whole House. Gambling is an adult activity, and it must remain an adult activity. That is one of the main reasons why I applauded the decision taken by the Premier League a fortnight ago to remove gambling sponsorships from players’ shirt fronts in the coming seasons, and it is the reason why we are ensuring children cannot engage in any form of gambling either online or on widely accessible scratchcards.

Finally, we know that the status quo disadvantages casinos, bingo halls and other traditional premises in comparison with their online equivalents. A number of assumptions that prevailed at the time of the 2005 Act now appear increasingly outdated, so we plan to rebalance regulation and remove restrictions that disadvantage the land-based sector.

Nearly every Member of Parliament will have met constituents whose lives have been blighted by gambling harm. The online world has transformed so many parts of life, and gambling is no exception. It is our responsibility to ensure that our rules and regulations keep up with the real world so that we can protect the most vulnerable while also allowing everyone else to enjoy gambling without harm. I look forward to working with every Member of the House to bring our gambling rules into the digital age, and I commend this statement to the House.

I thank the Secretary of State for that update, and for advance sight of her statement. I, too, pay tribute to all the campaigners who have long been calling for better regulation and reform of the gambling industry. I should also inform the House that my hon. Friend the Member for Manchester Central (Lucy Powell), the shadow Secretary of State, had given her apologies for her absence today long before we knew of the statement.

What we all know to be true is that updated gambling regulation is long overdue. The most recent legislation is from 2005, long before the huge rise and growth in online and mobile gambling opportunities. As a consequence, people can now gamble constantly and make huge losses in a very short time. I have met many people whose lives, and whose families’ lives, have been devastated by gambling harm. It is because of them that Members of this House are coming together from across the parties to call for better regulation of gambling. Anyone can fall into gambling addiction, so we need a modernised, robust system that is fit for the future.

Some forms of gambling, from bingo to the races, are of course a traditional British pastime. Around half of adults participate in some form of gambling, the vast majority with enjoyment and in moderation. Indeed, bingo halls are important in sustaining our local communities, especially in coastal and rural towns. Let us be clear: bingo halls, adult gaming centres and casinos face pressure as a result of sky-rocketing energy bills, and concerns about the sustainability of their business model in the face of significant online competition. It is therefore welcome that the announcement distinguishes between bricks-and-mortar bingo halls and low-stake adult gaming centres on the one hand, and the unique dangers of the online world on the other.

However, I must push the Secretary of State further. We have waited a long time for the statement, but it is very light on substance. Can she confirm exactly how the levy contributions of land-based and online gambling forums will differ? That is an important point, and I urge her to clarify that for the industry and the 110,000 people employed in it. What is the Treasury’s economic impact assessment of this announcement? The Government have delayed the White Paper many times. Everything that they are announcing today was ready to go a year ago. Six gambling Ministers and four Culture Secretaries have promised to publish this White Paper imminently. That being said, we welcome many of the measures announced; they are things we have long called for, and are a move in the right direction.

I thank the shadow Minister for her comments. The shadow Secretary of State, the hon. Member for Manchester Central (Lucy Powell), made her apologies to me, for which I am grateful; I understand the reasons for her absence.

I am pleased that the shadow Minister said that we need to update the rules, and that the measures will have cross-party support. I very much look forward to working with the shadow Front Benchers on this matter, which is so important. She mentioned the delay; I would reiterate a number of points, including the fact that we have taken measures over the past few years, including cutting the stakes for fixed odds betting terminals, banning credit card gambling, reforming online VIP schemes and introducing new limits to make online slots safer. She will know that I have been in post only two and a half months, but this has been a priority for me. I have brought this White Paper in with some speed and timeliness, I would say, and she can be confident that we will continue to ensure that these measures make it into the necessary regulations. We are bringing many of them through via statutory instrument, which will speed up the process, and I very much look forward to the co-operation of those on the Opposition Front Bench in ensuring that we can do so as soon as possible.

I call the Chair of the Culture, Media and Sport Committee.

I congratulate my right hon. and learned Friend on finally—finally—getting this White Paper published. I particularly welcome the introduction of the statutory levy, which she will know has great support in all parts of the House. The most disturbing fact I have learned in preparing for the Select Committee’s upcoming investigation into gambling is that at this moment there are something like 50,000 children in this country who are problem gamblers. That is a truly shocking figure. Can she expand more on the essential measures in her proposals that will protect children from this terrible scourge?

My right hon. Friend makes some important points. I think all of us across this House want to ensure that we protect children. That is why, in addition to measures already in place, such as ensuring that there is no advertising targeted towards children, there are a number of new measures in the proposals, including the voluntary ban on gambling advertising on football shirts, but not limited to that. As I mentioned, we are ensuring that monetary gambling is illegal until the age of 18. We will be making it illegal for children to use scratchcards or slots that produce cash. The statutory levy he mentions is also important, because through that levy we can continue to look at research on how gambling affects children and take any necessary measures in due course.

I call the SNP spokesperson.

I thank the Secretary of State for advance sight of her statement. We have consistently encouraged and pressed the Government for action in this area and, as other right hon. and hon. Members have said, a dozen Ministers responsible for gambling have come and gone since change was first promised. The 2005 Act is clearly out of date and grows less relevant to modern gambling realities by the day. Those vulnerable to harm, especially children, are not well protected under the current legislation.

My party and I will approach this important discussion with constructive dialogue to support evidence-led legislation from the outset. Will the Secretary of State outline the precise role of the ombudsman, especially when it comes to protecting children? I know that hon. Members on all sides are deeply concerned by the huge rise in gambling among children. We know that gambling destroys lives. I pay tribute to the many charity workers and others who have pressed for these changes, including hon. Members across the House—particularly, on the SNP Benches, my hon. Friend the Member for Inverclyde (Ronnie Cowan), who has worked tirelessly on this. We will work constructively with the Government in assessing the right way forward to protect the vulnerable from harm.

I am very grateful for that constructive approach and I look forward to working with the hon. Gentleman on the measures as they progress. He mentioned the non-statutory ombudsman, which is an important measure to redress the balance between punters who feel that their issues have not been addressed sufficiently and the companies involved. That is why we are bringing it forward, and we will be consulting on it in due course.

I welcome this announcement, and I pay tribute to the members of the all-party parliamentary group and its leadership, the hon. Members for Inverclyde (Ronnie Cowan) and for Swansea East (Carolyn Harris). The hon. Lady is with us today and has driven this with unstoppable power, like a force of nature, so I pay particular tribute to her.

I welcome this announcement because it is at least a start. It is a positive start, and it includes most of the recommendations of the all-party parliamentary group on gambling related harm, which is welcome, but there are a couple of other areas to mention. First, we should recognise that gambling is an online harm, with most of the harm being caused by online companies. Physical betting shops and so on are not part of that process, and the Minister will recognise that the majority of the statutory levy should be borne by those causing online harm.

The second area is advertising and children, on which the announcement simply does not go far enough. I do not mean to be churlish, because I welcome the announcement, but it should not be voluntary for football clubs to take gambling advertising off their shirts. I am a season ticket holder at Tottenham, whose shirts do not advertise betting companies, but many clubs’ shirts do, and children wear these things and sometimes go to school in them. They are therefore advertising gambling companies on their shirt. We need to recognise that this is a permanent process. Even if advertising is moved to the sleeve, in two years’ time, who knows, it might creep from the sleeve to the front. After the consultation, the Government should come back with a decision that we need to take control.

I welcome this announcement. It is a step towards security, safety and common sense, and that has to be welcomed by the House.

I commend my right hon. Friend for all the work that he and others have done in this area. It is because of their tireless campaigning, along with that of people and families who have suffered harm, that I am standing here today to introduce this White Paper.

My right hon. Friend mentions young people, and I share his concern. We must do more, which is why we are taking steps to make gambling illegal, in many forms, for under-18s. I welcome the Premier League’s announcement on banning gambling advertising from the front of shirts. Footballers are role models for our children, and we do not want young people to advertise gambling on the front of their shirts. They like to wear football shirts, so I welcome the Premier League’s voluntary move, which my predecessors and I encouraged.

Of course, we will look carefully at the evidence on the funding from the statutory levy, and we will keep all these matters under review.

I thank the Secretary of State for her statement. I have just managed to get a copy of the White Paper. It was widely reported that it might introduce restrictions on over-18s, but it appears to be more of a commitment to consult on asking gambling companies to think 25, rather than think 21, when verifying people’s age. Given that we are trying to address the real issue of gambling by children, can she explain the thinking behind that provision?

The hon. Gentleman is right to say that it is appropriate to protect people who are aged between 18 and 25. When he reads the whole White Paper, he will see that it proposes a consultation on reducing the amount of money that young adults, aged between 18 and 25, can bet on online slots.

I congratulate the Secretary of State and her officials on their work to produce this review. I agree that the Gambling Commission needs to be a data-savvy regulator. Can she confirm that it will be able to run independent background affordability checks without causing friction in the system? Importantly, many of the industry rules covering the gathering and use of data to target the advertising that drives customers towards loot boxes were written for the pre-smartphone world. The Gambling Commission needs to make sure that vulnerable players are not being data-profiled and targeted.

As always, my hon. Friend makes an important point. I am pleased to have had the opportunity to discuss these issues with him, given his expertise and knowledge of this area. He mentions player protection checks, which will largely be seamless and frictionless background checks that affect only 20% of people, most of whom will not know they are taking place. These secret checks are important in ensuring that gambling companies are taking their responsibilities seriously.

My hon. Friend will know that the Government are working with companies to ensure there are protections on loot boxes, too.

As chair of the all-party parliamentary group on gambling related harm, I welcome this long overdue White Paper. In the APPG’s 2019 interim report, we asked for affordability checks, parity between land-based and online stakes, an independent ombudsman, a curb on advertising and, most importantly, a statutory levy. Job done.

The APPG pushed for all the reforms the Secretary of State mentioned earlier against a strong backlash from the industry, not least on fixed-odds betting terminals, VIP schemes and credit cards. Today’s announcement shows progress. It may have taken eight years of campaigning, nine Secretaries of State for Culture, Media and Sport and ten changes in my hair colour, but it is progress none the less.

Today is a momentous occasion that many thought, and many wished, would never happen, but now the commitments need to be fulfilled. We do not need more consultation—we have had two and a half years since the review. We need swift action, immediate implementation of the proposals and urgent legislative change where necessary. After 18 years of the gambling industry’s dominance over this agenda, now is the time for levelling up. Will the Secretary of State commit today to ensuring that these changes are brought in as a priority, with no delaying tactics? Let us protect those whose lives have been affected by gambling-related harms and let us stop lining the pockets of an industry that has had it its own way for far too long.

I thank the hon. Lady and commend her hugely for all her work. As she has highlighted, we have listened and taken action. I really do commend and thank her for her work.

I have been in post for two and a half months. I have brought this proposed legislation forward and she can be reassured that I, together with the Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), will continue to ensure that action happens swiftly. As she will know, following a White Paper, various technical consultations need to take place. We will bring forward these measures largely through statutory instruments, and she has my utmost commitment that I will ensure that process is done as speedily as possible.