Gambling-Related Harm

[Steve McCabe in the Chair]

I beg to move,

That this House has considered gambling-related harm.

It is nice to see you—a Portonian—in the Chair, Mr McCabe, and to see the number of people who have put their names down to speak—although it is about not just the quantity but the quality of the speakers that we have in the Chamber.

When we think of harm caused by drugs, alcohol or tobacco, we have a very specific idea of what it looks like. When it comes to gambling, the harm may not be so obvious but it is there. The Responsible Gambling Strategy Board proposed that the following definition of gambling-related harm should be used in British policy and practice:

“Gambling-related harms are the adverse impacts from gambling on the health and wellbeing of individuals, families, communities and society.

These harms are diverse, affecting resources, relationships and health, and may reflect an interplay between individual, family and community processes. The harmful effects from gambling may be short-lived but can persist, having longer-term and enduring consequences that can exacerbate existing inequalities.”

From that definition, it is clear that the harm is not restricted to individuals, and that it can have a detrimental effect on entire communities and those living in them.

Debt incurred by gambling creates instability and insecurity, and can lead to bankruptcy. In the extreme, it results in criminal activities. Relationships can be disrupted, which often leads to emotional and social isolation. This can lead to mistrust and it erodes cohesive relationships. The consequences can include psychological distress, such as feelings of shame, stigma and guilt. Anxiety levels increase, and depression and even suicide can be the final outcome.

The Office for National Statistics has published data showing that between 2001 and 2016 there were 21 suicides

“where the death certificate mentioned ‘gambling’ or ‘gamble’.”

Furthermore, the ONS stated that

“the data is not considered completely reliable, because a coroner will not always record detailed information regarding the deceased’s history”.

According to Gambling With Lives, 4% to 11% of suicides are related to gambling, which is the equivalent of 450 to 620 deaths per year in the UK. These figures are based on research carried out by Paul Wong that appeared in the Journal of Affective Disorders in 2010 and research from Louis Appleby at the University of Manchester in 2017.

The hon. Gentleman is making a very strong case. I wonder whether the starting point in all this should be in schools, and in trying to provide children with the necessary education to prevent them from starting to gamble.

I agree with that point and I hope to cover it later on, when I will look at the educational support for kids and the possible grooming of children, normalising gambling as part of their lives.

On my last point, will the Minister consider ways whereby coroners can ensure that data around suicide can be captured, so that accurate figures can be maintained?

Jack Ritchie was 24 and from Sheffield. He was a history graduate who taught English in Kenya and Vietnam. He began gambling at 17 and would visit betting shops during his school lunch break. By 18, he admitted that he had a gambling problem and that he had lost thousands of pounds, including £5,000 given to him by his grandmother. After another gambling loss, he committed suicide in 2017, while he was in Vietnam. Jack’s mother, Liz Ritchie, compared gambling addiction to heroin dependency. The harm is real and it is growing, while the research and support is massively underfunded.

I commend the work undertaken by Henrietta Bowden-Jones at her clinic in Fulham. There are plans to open a similar clinic in Leeds, and hopefully more in Scotland and Wales. That must happen, but the funding model requires scrutiny. Currently, the industry pays a voluntary levy that raises £10 million to £14 million a year. That money is used to fund support for problematic gamblers, and campaigns to educate people and hopefully reduce harm.

That voluntary contribution of £14 million must be measured against the gambling companies’ profits. In November 2018, William Hill issued a profit warning, saying that it expected yearly profits to be in the range of £225 million to £245 million—in 2017, company profits were £291 million—whereas 888 Holdings reported pre-tax profits of £83 million on revenue of £541 million in March 2019. Paddy Power Betfair reported pre-tax profits of £219 million in 2018 on revenue of £1.87 billion, and bet365 posted an operating profit of £660 million on revenue of £2.86 billion.

The total gross gambling yield for Great Britain between April 2017 and March 2018 was £14.4 billion, which was a 4.5% increase from the previous year. The annual sum that gambling firms win from their customers has risen by 65% since the Gambling Act 2005. It is against those figures that we have to consider the voluntary levy of £10 million to £14 million. A statutory levy of 1% would guarantee £140 million a year and that sort of money, in the right hands, could do some serious good.

I congratulate my hon. Friend on securing this debate. Does he agree that, given the numbers he has cited, it is nigh impossible for local authorities anywhere in the United Kingdom of Great Britain and Northern Ireland to implement their statements while they are dealing with a marketplace in which the money created for the businesses fundamentally outweighs anything that they can do locally through a simple planning statement?

I wholeheartedly agree. I am not going to war with the gambling industry here, but we have to look at the figures, and the money that companies have to spend in order to promote gambling far outweighs anything that we have got at local council level to counteract that and the damage that has been done.

In addition, because the levy is voluntary, the amount raised can vary from year to year, and therefore budgeting for long-term treatment is extremely precarious. I ask the Minister to review how gambling-related harm reduction is funded and to investigate more effective methods.

Let me be clear: I am not asking for financial recompense from gambling companies just to improve their public image. A sponsorship deal here and a charitable donation there are no more than fig leaves to hide the companies’ own embarrassment—and they should be embarrassed. How can a family be recompensed for the loss of their son, or a child who has lost their father? I am not asking for token gestures; I am asking gambling companies to stop doing the damage in the first place. Rather than merely asking punters to “gamble responsibly”, they should run their organisations responsibly. If the Gambling Commission cannot act, and if self-regulation is not adequate, the UK Government should step in and legislate to ensure responsible working practices are in place. Will the Minister review the role of the Gambling Commission and its funding model?

While we talk about responsible working practices, companies are gathering data pertaining to the habits of online gamblers. Astonishingly, they are closing down the accounts of people who are successful and winning—even those winning small amounts—while targeting and encouraging vulnerable gamblers who are losing to continue gambling. This callous disregard for the welfare of their customers is tantamount to gross negligence.

Another outcome of the increased use of technology is that the division between gambling and gaming has been blurred by the introduction of “loot boxes”. That did not happen by accident: adults designed and wrote the software; adults considered the returns; and adults are grooming children to be the next generation of gamblers.

I thank the hon. Gentleman for giving way and congratulate him on securing the debate. He is making many points that I agree with entirely. On the point about how we can better control some of the excesses of the gambling industry, does he agree that we need to consider how the advertising strategies of the gambling industry are conducted, and in particular how they use social media and advanced techniques to target people who are already known to gamble, encouraging them to gamble further?

The hon. Gentleman is absolutely correct. We could have an entire debate about advertising in the gambling industry. It is such a deep concept, because of the methodology that can now be used by gambling and media companies to get access to people and their information and then specifically target them in a way in which they know will manipulate that information. It is a whole big data, fake news almost, subject.

We know that loot boxes can be closed down, because they have been in Belgium—they have even managed to do it in the Isle of Man—so will the Minister take action to ban loot boxes from the United Kingdom?

Where to start when it comes to advertising? Live televised sports events are swamped with betting adverts and inducements to bet. The impression is given that a sporting event is not sufficient entertainment in its own right unless we take a punt on the outcome. Gambling has become normalised through such extensive advertising and in popular discourse. Football punditry now increasingly refers to bookies’ odds, and many more sports teams are sponsored by operators. As the latter qualifies as sponsorship rather than advertising, the same regulations do not apply. With punters being encouraged at every turn, the ease with which gamblers can sign up to an online operator is of great concern. Punters can gamble 24 hours a day, seven days a week, all year. There is now no cooling-off period.

The style of games is carefully crafted to draw users in, with frequent offers of free spins and other techniques that are used to start habitual gambling behaviour. Money is readily available through credit cards, PayPal accounts and phone accounts—they are all accepted as means of payment.

Finally, to be perfectly blunt, the gambling companies have stacked the odds against the punters and the damage that is being done needs to be redressed. However, it can be done only if the money is raised and put in the right hands to support gambling addiction, advertising is curtailed and the behaviour of bookmakers, particularly regarding online betting, is monitored and adjusted accordingly.

Order. Before I call anyone, I want to say that we have, I think, seven people down to speak. We can get everyone in without a time limit if people confine themselves to six minutes or less.

I pay tribute to the hon. Member for Inverclyde (Ronnie Cowan) for securing the debate. I would like to feel that I played some part in making his speech happen because, had I not lost Greenock and Inverclyde, which I fought valiantly in the 1997 general election, he might not be here with us—that election in itself was something of a gamble.

I was just reviewing some of the things I spoke about when I was shadow Secretary of State for Culture, Media and Sport between 2005 and 2007, opposite the late Dame Tessa Jowell, whose memorial service I was pleased to attend. Tessa, I think, was slightly conflicted during that time. The Labour party of the day was absolutely obsessed with the idea, which it had imported from America, of inner-city super-casinos as the panacea to all the problems of inner-city regeneration. We debated that back and forth across the House and many people on both sides thought it a terrible idea. In the end, it did not really happen. At the same time, however, the issue of online gambling was beginning to emerge. Although Tessa admitted in 2006 that she had presided over an explosion of online gambling, she was concerned about the regulatory side, particularly about trying to regulate offshore gambling, which remains a problem. The Government of the day, and Governments since, have always been one step behind.

It is the Opposition’s job to be critical of the Government, and I remember being critical of the international summit on remote gambling that Tessa put on in October 2006, rather appositely at Royal Ascot—the home of racing. The conference prioritised crime, competition and safeguards for children and vulnerable people, but had little to say about how to prevent, given the growing online arena, gambling-related harm or its associated social costs.

Reviewing what I said, the questions I laid down and the debates we had in that period, it is salutary to think that we have not moved on that much. The latest Gambling Commission figures show that 48% of adults participate in some form of gambling, and for online gambling the figure is 18%. I should think, but I do not know and the Minister will be able to correct me, that that figure is more likely to increase than decrease.

My right hon. Friend makes a very good point. Although according to the headline figure only a small percentage of the general population appears to be affected by problem gambling, the reality is that the harms that manifest in that group are widespread and cause both considerable economic damage to those people and their families and damage to wider society. As my right hon. Friend rightly said, to look at just those headline figures would be misleading.

I hope that we will shortly hear from my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), who has done much work in this area, not least on fixed odds betting terminals, which are described as the “crack cocaine of gambling”. He will be better able than me to inform the debate.

I do not want to take up too much more time, other than to say that we have been debating the matter for many, many years and I do not believe that we have it right. It remains a huge problem that is difficult, but not impossible, to regulate. We want to hear from the Government how much more robust they can be.

I have just five quick points to put to the Minister. Will the Government treat gambling as a public health issue, as we do mental health? Will the Minister consider introducing tougher verification checks, which could ensure that young gamblers were not drawn online? Has she considered limiting gambling adverts during sports match breaks to one per break per company? We heard from the hon. Member for Inverclyde how online gambling organisations and organised sport are almost one and the same now. Will the Minister agree to conduct a full review of the social costs of gambling? For example, the Government have never estimated the cost to the NHS of gambling-related harm. Will the Minister ensure that gambling-related harm is included when health education is made compulsory in all state-funded schools, as part of teaching about mental wellbeing? My hon. Friend the Member for Henley (John Howell) has already mentioned schools.

Almost daily, we hear and read about problems to do with mental health, and I am glad that we now talk about mental health in a way that we perhaps never have—it is one of society’s hidden problems. However, I suggest that mental health issues in some cases—not all—can be, and are identified as being, exacerbated by dependency on drugs, alcohol and, yes, gambling. Gambling can be a hidden form of dependency, because if you are online you can do it on your computer in your own room. It is not the gambling that people think about of 50 or 60 years ago, which was a social occasion, be it at the bingo or in a casino; it is a hidden form of playing with money and, often, with people’s lives.

It is a pleasure to serve under your chairmanship, Mr McCabe, and I, too, congratulate the hon. Member for Inverclyde (Ronnie Cowan) on securing this important debate. Many hon. Friends present have campaigned vigorously for the stake on fixed odds betting terminals to be cut to £2. The blight of FOBTs was eventually acknowledged by the Government, and that stake will be reduced in April this year.

However, the harm caused by gambling goes far wider than FOBTs, as has become apparent to me and others over the months and years that we have been campaigning. For that reason, we have established a new all-party parliamentary group on gambling-related harm, which will be looking broadly at the many harms caused by gambling. It is important to say that we are not against gambling; we acknowledge that, for many people, gambling is a benign, fun activity. However, there are also many instances in which gambling becomes harmful, and it is important to ensure that the right protections and regulations are in place to protect the vulnerable and prevent harm.

I congratulate my hon. Friend on the work she has done on this issue. A constituent approached me recently whose mother had dementia and had gambled away about £50,000, even though the family kept going back into the betting shops to point out that she had this condition. Given what my hon. Friend is saying, does she agree that we should do more to protect vulnerable people, such as those with dementia, and that the industry should look closer at the legislation?

I certainly do. It appears that we are able to protect the vulnerable only when we let the press know of such stories, because the industry refuses to take responsibility for its actions.

The first priority of our APPG will be to look at the harms caused by the growth of online gambling. According to recent reports on British gambling behaviour, the prevalence of problem gambling among those who gamble online—at the casino, the slots and the bingo-style games—is very similar to its prevalence among those who play FOBTs. Currently, there are close to 3 million problem and at-risk gamblers in the UK, and 10% of them play online casino, slots and bingo.

The size, scale and structure of the industry are driving the harms that are being caused. The APPG has heard that the remote gambling sector is being run in a way that is totally unsustainable; in some cases, online companies are actively seeking to drive harmful gambling behaviour and large-scale bets to ensure their own profitability. A recent PricewaterhouseCoopers report for the Gambling Commission found that 59% of the profits of remote gambling companies come from people with gambling addictions or problematic gambling behaviour. Those companies’ models are based not on building long-term relationships with loyal customers, but on extracting as much money as possible from people, particularly those who exhibit more risky behaviour and place large bets until they effectively run out of money. The companies then move on to find other customers, and they seek to incentivise their staff to do so. Their constant drive for profit and new customers means that they have no incentive to seek a reduction in problematic behaviour. Problem gambling and high-stakes play are entirely in their interests.

Those companies’ frantic search for new customers and greater levels of spending has, in turn, led to a huge increase in gambling advertising. We have heard about cases of vulnerable gamblers being offered VIP status to encourage them to gamble and rack up huge losses. Equally, we have heard rumours about some operators not paying out to those who have rightly won money; they are happy to encourage those who regularly lose to gamble more, while restricting bets from more successful players. The message is clear: people should not go into online gambling with the expectation that they will win. The only customers that those companies want are those who lose.