Gambling and Lotteries

Before I call the Minister to make a statement, I am tempted to say that it is pleasing that he has found time in his busy schedule of media appointments to update the House. It really is for the benefit of the Minister himself, as well as Members, for the House to be informed first of policy changes. I hope that he and those within the Department who feel that this House should not hear it first will bear that in mind in the future. I have the greatest respect for the Minister, and I am sure he would agree that this is not the way that we want it to happen.

Mr Speaker, I hope you will accept my apologies for any offence caused by some of the information already being out there. I can assure you that the full details and the call for evidence document are only just now being released and made available on the gov.uk website, precisely to coincide with this statement, but I understand and accept what you said.

The Gambling Act has been the basis of virtually all gambling regulation in the UK since 2005, but a huge amount has changed since then. The internet and the prevalence of smartphones have transformed the way we work, play, shop and gamble. We can now gamble anywhere at any time. It is time to take stock of the significant changes of the last 15 years and to pull our legal and regulatory framework into the digital age, so today we are launching the first part of our comprehensive review of the Gambling Act. It will be a wide-ranging and evidence-led look at the industry, and it will consider the many issues that have been raised by parliamentarians and many other stakeholders. We want to listen, gather the evidence and think deeply about what we need for the next decade and beyond.

Nearly half the adult population gambles each month and, for the majority of people, gambling is a fun and carefree leisure activity. It is also a sector that supports 100,000 jobs and pays nearly £3 billion a year in taxes. However, we know that, in some cases, gambling can cause significant damage to people’s lives, including mental health problems, relationship breakdown, debt and, in extreme cases, suicide. We must ensure that our regulatory and legislative framework delivers on a core aim of the 2005 Act: the protection of children and vulnerable people in a fair, open and crime-free gambling economy.

This review will seek to strike a careful balance between giving individuals the freedom to choose how they spend their own money, while protecting vulnerable people and their families from gambling-related harm. We will look at whether we should introduce new protections on online products and consumer accounts, including stake and prize limits, and how we can ensure that children and young people are protected. We will also consider gambling advertising, including sports sponsorship, while taking into account the extremely difficult financial situation that many sports organisations and broadcasters find themselves in as a result of covid. We will look at redress arrangements for consumers where, for example, an operator has failed to step in to help a problem gambler. We will consider barriers to effective research on the causes and impact of problem gambling, and we will consider whether the Gambling Commission is keeping pace with the licensed sector and can effectively deal with unlicensed operators. We will also ensure that we have a fair playing field for online and offline gambling.

Many of those areas were highlighted in a thought-provoking report by the House of Lords Select Committee. That report and others have helped to inform our thinking and our desire to ensure that the review is wide in scope, and we are publishing our response to the Lords report alongside the review. I also know that Members across the House have seen evidence from their constituents about the harm that gambling can do to individuals and their families. We want to hear from the people whose lives have been affected by gambling, as well as from academics and the gambling industry, so that we have the evidence to deliver real and lasting change. We are therefore starting the review with a call for evidence, which will run for 16 weeks and is now available on the gov.uk website.

I thank the Minister for early sight of his statement. On behalf of the Opposition, I welcome the main measures that the Government have announced today, and I certainly welcome the beginning of this process of review and reform. Many Members across the House and in the other place have worked very hard indeed to get us to this place. I will not mention individuals specifically, not least because I am sure they will speak for themselves shortly, but we owe them a debt for bringing this issue to the fore. I thank all of them, because when people work across the House and across party political barriers in pursuit of the public interest, it is Parliament at its best.

This is only the beginning of the process to get the reforms that we need on gambling, so it is disappointing that the Government have taken more than a year to launch this review, during which time we know there are still people who may be suffering. Gambling addiction is highly serious, and we know that we have not got the right support in place. So the delay has a cost, which is why we need to move forward together and swiftly now. What we need is fit-for-purpose regulation which can keep up with the changing nature of gambling online, both on the smartphones that we all carry and in the environment around us all the time. We believe that the law in this area should be approached from a public health perspective to protect the vulnerable and particularly children and young people—I think the Minister would accept that—but to allow others who choose to do so to gamble safely. The Minister mentioned that UK gambling legislation is some 15 years old and it is hard to quantify the technological change that we have all experienced during that time. If somebody had told me in 2005 precisely what the phone in my pocket would have the capacity to do by this point, even I would have been shocked. We need to bring the legislation up to date. There is not a moment to lose.

Millions of people enjoy gambling in a safe way, but, as I have said, given the speed of change, vulnerable people should be protected. Age verification must be taken seriously.

I thank the hon. Lady for the tone of her response and for welcoming the review. She is absolutely right that the measures in the review and the scope of the review have been supported by hon. Members on both sides of this Chamber and many individuals have campaigned on these issues for a long period of time.

On timing, it is important to recognise that we do not wait for the periodic reviews. We are not waiting for necessary future legislation. We have acted and will continue to act as and when necessary. Just this year, for example, we banned the use of gambling with credit cards. We have made further restrictions on VIP schemes. There is the mandatory participation in GAMSTOP, for example, and the announcement today about the changes with the national lottery is testament to the fact that the Government are willing and able to take action. There was also action just last year on fixed-odds betting terminals.

In terms of future-proofing, no Government can guarantee to future proof, but certainly the intent is for the scope to be broad and wide, recognising, for example, changes in technology and what that could mean for using information intelligently to identify potential problem gamblers, as well as looking at the scope of the Gambling Commission itself.

In terms of evidence, we are looking for evidence from all sources, including all those that the hon. Lady suggested—from health and from academics. We welcome the participation of anybody willing and able to participate in this review with evidence.

The hon. Lady made an important point on sport. As sports Minister—we both cover sport—I know the challenges that the sporting sector faces, so we need to make sure that any changes are proportionate. Indeed, as she knows, we intend formally to kick off the football governance review as soon as possible. Informally, it has already begun. Other areas such as redress and the black market will absolutely form part of the review.

No longer is gambling a case of just nipping down the bookies. We now live in a world dominated online with sophisticated algorithms and increasing artificial intelligence. Will the Minister assure the House and me that the review will place at its centre the oversight of algorithms in push marketing and fairness in bet exchanges, and that that will dovetail with robust age verification on social media platforms? In addition, when will we see the legislation to curb the menace of loot boxes? As a side point, on the banning of national lottery sales online, why do we have to wait until April next year? Surely that is something that could be actioned relatively quickly.

I thank the Chair of the Select Committee on Digital, Culture, Media and Sport for, as always, valuable comments. On using technology intelligently, I absolutely agree with him—it is vital that we do so to identify problem gambling and issues of affordability, and that that forms part of the future-proofing of the sector.

The loot-box issue is being addressed. We have issued a call for evidence, which concluded on 22 November, and we will introduce recommendations shortly. On the lottery changes, as I say, we have had conversations with key stakeholders. We want to move as soon as possible. The target date of 1 October is the latest date for changes. We want to bring the online changes forward as soon as possible, but there are notifications, technology changes and logistical considerations, as well as training considerations. It is not the kind of thing that can occur overnight, but we have had productive conversations with the operators to make sure that we can implement the measures as soon as possible.

I thank the Minister for prior sight of the statement. I welcome the overall messages in it, as they touch on many of the issues that have blighted the industry and caused great harm to many people for far too long. There is a great deal to discuss, and I shall keep a beady eye on the process and progress of the review.

In the time allotted to me, may I thank the Minister for making it clear that the evidence-led inquiry will include those who have been harmed and the families of those who have lost someone to suicide as a result of gambling addiction? Lived experience is crucial to inform the review. However, I am concerned that the Minister has caveated his concerns about advertising with the financial difficulties faced by sports organisations and broadcasters. The reduction of harm must be front and centre in the review, and must not be undermined by the eye-watering financial demands of premier league football teams.

On the national lottery, there is no excuse for delaying the enforcement of the increased age limitation offline for 10 months. May I ask that the timescale is revisited or at least justified? I did not read anything in the statement about the voluntary levy. We need a statutory levy that funds research, education and support. That money should be paid to the UK and devolved Parliaments before being channelled to the appropriate service providers. Research into gambling harm must not be funded by voluntary contributions from the industry that causes the harm.

Finally, many people, including members of the all-party parliamentary group on gambling-related harm, will scrutinise the outcome of the review. May I offer a friendly warning to the Minister? We will not be fobbed off with a partial review, and we will not accept second best.

I can confirm that the experience of those with lived experience will form part of the review. In fact, the Secretary of State and I have met many victims and their families, and we will continue to do so. On sport, if there is evidence of harm from sponsorship and advertising, we will act. On the other considerations that the hon. Gentleman mentioned, I can assure him that if people have evidence, for example, that a levy is an alternative model, we would welcome those submissions in the review. I welcome the scrutiny that he and others will give to the review as it progresses.

I thank my hon. Friend for his statement, which marks the beginning of a real sea change in our attitude towards the gambling abuses that have taken place. On that point, I pay tribute to the hon. Member for Swansea East (Carolyn Harris), whose chairing of the all-party parliamentary group on gambling related harm has been phenomenal, and to the vice chair, the hon. Member for Inverclyde (Ronnie Cowan). We have worked very hard together to try to drive this moment. I have to say to my hon. Friend the Minister that we want all the evidence we have taken over the last couple of years to be part of the inquiry. I would also like the all-party parliamentary group to appear in front of it.

May I press my hon. Friend on one particular point? He knows about the abuse of VIP schemes and about the behaviour of the gambling companies, which have been appalling in the way they have used people. Is it not now time, instead of looking only at the powers of the Gambling Commission, to get rid of the Gambling Commission altogether and institute a body as powerful as, say, Ofcom or all the other bodies that monitor and regulate these industries? Now is the time to make bold moves, to make sure we get proper control and that the abuses and the addiction end.

I thank my right hon. Friend for all his work in this important area, and the people he mentioned who have also campaigned for such a long time. We know that there have been problems with VIP schemes. We have acted on them already, but that does not mean that further action is not necessary. I am confident that the evidence-led review may reveal further options and avenues. I welcome his input into all areas under consideration. As I said, the Gambling Commission’s scope and resources are part of that review. I welcome his further comments.

The architects of the Gambling Act 2005 could never have anticipated that by 2020 technology would allow phones, tablets and computers to become 24/7 limitless gambling hubs. For far too many, this has led to devastation, demoralisation and, at worst, death. Can the Government assure the House that the voices of bereaved families, those with lived experience, campaign groups and colleagues and friends from right across the House will be given the same consideration when feeding into this review as the well-resourced, confrontational and relentless gambling lobby, whose sole motivation is profit, not people?

I thank the hon. Lady for her ongoing campaign in this important area. We have had many conversations on this, and I know her passion for change. I can confirm that those with lived experience and the families of those impacted will absolutely play a key role in the review. We welcome their evidence. As has already been suggested, some evidence has been brought forward in various other reviews and reports that we have seen in the House, and we welcome re-submissions of some of that data. The role of those people is vital. We all know, through experiences and interactions with our constituents, how devastating problem gambling can be. I think the whole House recognises the need for further action.

I associate myself with the comments of my hon. Friends from the all-party parliamentary group on gambling related harm. I also thank the Minister for his statement. I know that he has done a lot of work in this area. It is good to hear that the review will be broad and wide. However, can he clarify that, when he mentioned parity between high street and online, he is not saying that high-street casino gambling will be the same as online casinos? Quite frankly, there should be one place where the highest-stakes gambling can take place, and that is not in people’s homes and bedrooms.

I also urge my hon. Friend to reflect on the Public Accounts Committee’s report around an ombudsman service. Some points that we raised were recommendations from the Public Accounts Committee, particularly around redress for people who have suffered real harm, and are really worth noting. I hope he will take note of those considerations.

As I said, the role and scope of the Gambling Commission and other areas will be under consideration. The point about the land-based system versus the online world is that, as many have mentioned, the world has changed considerably, and we want to ensure that there is an even playing field in gambling. We need to make sure that all forms of gambling are as safe as they possibly can be. The goal of this review is to tackle harms as much as possible, but also to make sure that the legitimate gambling industry is on a safe footing for a sustainable future.

I welcome the statement, but the Minister will understand that the online harms Bill, when we get it, will have a crucial role to play in this area. Big tech firms are allowing unregulated black market gambling companies to promote on their websites, and they are advertising to the under-18s. What does he think about that, and what is he going to do about it?

The hon. Gentleman raises legitimate concerns about the black market—the unlicensed industry, which does exist. This will form part of the review. Part of it will include the scope, responsibilities, powers and resources of the Gambling Commission and regulatory bodies to deal with the black market. It is a very important issue.

As with all Government reviews, sectors and people fear that Government do not take into account their concerns and often adopt a “do to” rather than a “do with” attitude. What discussions has my hon. Friend had with sporting bodies, particularly in horse-racing and football, on the financial implications that the review could have for their members?