To ask His Majesty’s Government what assessment they have made of the Gambling Commission’s finding against William Hill concerning breaches of player protection, and their imposition of a £19.2 million penalty.
My Lords, I beg leave to ask a Question of which I have given private notice. I declare my interest as a former chairman of the ad hoc Lords Select Committee which published Gambling Harm in July 2020.
My Lords, this action was taken by the independent regulator as part of its duty to uphold standards. The Government do not comment on individual enforcement cases; we have, however, continued to see too many cases of operators failing adequately to protect their customers. The Gambling Act review will include a range of policies to strengthen protections further, and we will publish a White Paper in the coming weeks.
I thank the Minister for that response. The Select Committee report on gambling harms made more than 60 recommendations to avoid the worst excesses at the toxic end of the gambling industry. Of those 60-odd recommendations, only five or six, from memory, required primary legislation. In that time, what have the Government done to implement some of the things that might have stopped William Hill, kept it honest and saved some lives in the process?
I had the pleasure of serving on that committee under my noble friend and, as I am sure he knows, all its recommendations are being considered as part of our review of the 2005 Act. Both the Government and the Gambling Commission have been taking action in the meantime, including in line with more than a dozen of the committee’s recommendations. That includes: tough new requirements about online VIP schemes; developing a new approach to collecting data on gambling participation and harm prevalence; reforming online slot games so that their speed of play is the same as land-based equivalents; introducing new rules on advertising, including banning the creation of undue urgency to bet and content with a strong appeal to children; raising the age to participate in the National Lottery to 18; and strengthening online self-exclusion, with robust requirements about stopping marketing to people who have excluded themselves from gambling. So we continue to take action while also reviewing the 2005 Act.
My Lords, I declare my interest as chairman of Peers for Gambling Reform. These and other egregious breaches of current player protection arrangements show all too clearly that these arrangements simply do not work. Given that, as the noble Lord, Lord Grade, pointed out, no new legislation is required, should we not be immediately introducing a single, independently overseen system of light-touch affordability checks to which all gambling companies must adhere?
I think the imposition of this record penalty shows that the Gambling Commission is taking all these issues seriously. Indeed, since the start of 2022, operators have been required to pay more than £76 million because of regulatory failures discovered by the commission. So the commission is doing its work and the Government are doing our work in reviewing an Act that is coming up to two decades old and certainly needs looking at again to make sure we have the regulation and laws in place to ensure that we have a proportionate regulation of this undertaking.
My Lords, as chairman of the Proof of Age Standards Scheme, I ask whether this is not a good argument for having proof of age verification in the online harms Bill.
I look forward to debating that and other matters with my noble friend in the course of our deliberations on the Online Safety Bill. Of course, in relation to gambling, we are looking at all sorts of matters as part of our review of the 2005 Act.
Do not the large fines imposed demonstrate the failure of the system? We do not want people to receive large fines; we want them to be stopped gambling when they cannot meet their debts. Do the Government not need to step up and introduce legislation to deal with this real problem?
As the Gambling Commission made clear, the failings it discovered were so widespread and alarming that it gave serious consideration to suspending the licence in this case. However, because the operator admitted its failings, the commission opted instead to impose the largest enforcement payment in its history. It is taking action, and the companies are taking action in light of the regulation undertaken by the commission. We look at the Acts to make sure that we have the regulation we need in place.
My Lords, given this further evidence of companies serially failing to take care of their customers, what steps are the Government taking to ensure that individuals can hold companies to account for gambling harms?
We have ensured that people who have excluded themselves from gambling are protected. Individuals are rightly taking action, and we want to ensure that they can do so. Individuals can draw their cases to the attention of the Gambling Commission, in addition to its work in monitoring the sector.
My Lords, does not the very small proportion that monetary fines constitute of gambling companies’ profits indicate that they are not working? Should the Gambling Commission not take more effective powers, which are already within its remit?
The fines and penalties imposed by the commission are increasing. In the 2016-17 financial year, it issued penalties of just £1.7 million. As I said a moment ago, since the start of 2022 operators have paid more than £76 million. The financial penalties are increasing, and the commission has revoked 14 operator licences and 66 personal licences since 2016. There are a range of sanctions which it can and does undertake.
My Lords, I declare an interest as a former Minister for the gambling industry. I have great concern as we approach the White Paper. Many of us regularly hear concerns from people about the way in which gambling has been allowed to extend itself through advertising, particularly to vulnerable groups and broadly through sporting industries. Although many gambling companies act entirely responsibly—the best ones certainly do—does my noble friend agree that we must now look carefully at the permissive situation that we have allowed to develop over the last few years?