Gaming Machines and Social Responsibility — House of Lords, 2018-05-17
Topic: Domestic Commerce
Thomas Ashton (Conservative, Centre-right): My Lords, with the leave of the House, I will now repeat a Statement made recently by my honourable friend the Minister for Sport and Civil Society in the other place. The Statement is as follows: "Mr Speaker, with permission, I wish to make a Statement on the gambling review and the publication of our response to the consultation on proposals for changes to gaming machines and on social responsibility requirements across the gambling industry The Government announced a review of gaming machines and social responsibility measures in October 2016 in order to ensure that we have the right balance between a sector that can grow and contribute to the economy and one that is socially responsible and doing all it should to protect consumers and communities from harm. Underlying this objective was a deep focus on reducing gambling-related harm, protecting the vulnerable and making sure that those experiencing problems are getting the help they need Following a call for evidence, we set out a package of measures in a consultation which was published in October last year. These included social responsibility measures to minimise the risk of gambling-related harm, covering gambling advertising, online gambling, gaming machines and research, education and treatment. The consultation ran from 31 October 2017 to 23 January 2018. We received more than 7,000 survey responses from a wide range of interested parties. We received more than 240 submissions of supplementary information and evidence from the public, industry, local authorities, parliamentarians, academics and charities We welcome the responses to the consultation and, in preparing our conclusions, we have reflected on the evidence, concerns and issues that have been raised. We have considered these responses, alongside advice that we have received from the Gambling Commission as well as the Responsible Gambling Strategy Board. We have set out measures on gaming machines, as well as action across online, advertising, research, education and treatment and, more widely, the public health agenda in regard to gambling Before I set out the detail of this package of measures, let me say up front that we acknowledge that millions of people enjoy gambling responsibly, and we are committed to supporting a healthy gambling industry that generates employment and investment. But over the process of this review I have met many people who have experienced gambling addiction, and those who are supporting them, including parents who, sadly, lost their son to suicide as a result of the impact of gambling on his mental health. In addition, I have visited the incredible treatment services that are there to support them. We are clear that gambling can involve a serious risk of harm for individual players, as well as for their families and the communities they live in, and we must ensure that they are protected The Government are satisfied with the overall framework of gambling regulation but, as part of our action to build a fairer society and a stronger economy, we believe that when new evidence comes to light we need to act to target any gambling products or activities that cause concern. It is also important to acknowledge that while gambling-related harm is about more than any one product or gambling activity, there is a clear case for government to make targeted interventions to tackle the riskiest products, with the objective of reducing harm One product in particular, B2 gaming machines or fixed-odds betting terminals—FOBTs—generated enormous interest throughout the review process. In consultation, we set out the evidence for why we believe that targeted intervention is required on B2 gaming machines and options for stake reduction. Although overall problem gambling rates have remained unchanged since the Gambling Act 2005, it is clear that there remain consistently high rates of problem gamblers among players of these machines. Despite action by industry and the regulator, a high proportion of those seeking treatment for gambling addiction identify these machines as their main form of gambling According to data for 2015 across Great Britain, 11.5% of players of gaming machines in bookmakers are found to be problem gamblers. A further 32% are considered at risk of harm. The latest data for 2016 for England finds that 13.6% of players of gaming machines in bookmakers are problem gamblers—the highest rate for any gambling activity. We are concerned that factors such as these are further amplified by the relationship between the location of B2 gaming machines and areas of high deprivation, with these players tending to live in areas with greater levels of income deprivation than the population average. We also know that those who are unemployed are more likely to most often stake £100 than any other socioeconomic group Following our analysis of all the evidence and advice we received, we have come to the conclusion that only by reducing the maximum stake from £100 to £2 will we substantially impact on harm to the player and to wider communities. A £2 stake will reduce the ability to suffer high session losses, our best proxy for harm, while also targeting the greatest proportion of problem gamblers. It will mitigate risk for the most vulnerable players, for whom even moderate losses might be harmful In particular, we note from gaming machine data that of the 170,000 sessions on B2 roulette machines that ended with losses to the player of over £1,000, none involved average stakes of £2 or below, but at stakes of £5 to £10 losses of this scale still persist. At a £2 stake it is very hard for a player to even lose more than £500 in a session. Out of approximately 600,000 sessions that involved losses of between £500 and £1,000, only 14 of those cases involved average stakes of £2 or below. However, losses of this scale also persist at even £5 or £10. Clearly losses of £500 or £1,000 in one sitting might be harmful to problem and non-problem gamblers alike The response to our consultation has been overwhelmingly in support of a significant reduction in B2 stakes. The majority of respondents to the consultation submitted opinions in favour of a £2 limit, indicating strong public approval for this step. This included local authorities, charities, faith groups, parliamentarians, interest groups and academics. I am grateful for the cross-party work that has been undertaken on this issue, and would like to pay particular tribute to the honourable Member for Swansea East and the right honourable Member for Chingford and Woodford Green Elsewhere in the industry we are, for the time being, maintaining the status quo across all other gaming machine stakes, prizes and allocations. We have, however, agreed to an uplift for stakes and prizes on prize gaming, which we consider sufficiently low risk We are aware that the factors which influence the extent of harm to a given player are wider than any one product, and include factors around the player, the product and the environment. The response therefore also sets out action on: increasing player protection measures on other gaming machines on the high street; increasing protections around online gambling, including stronger age verification rules and proposals to require operators to set limits on consumers’ spending until affordability checks have been conducted; doing more on research, education and treatment of problem gambling, including a review by Public Health England of the evidence relating to the public health harms of gambling; enhancing protections around gambling advertising, including a major multimillion-pound advertising campaign led by GambleAware, around responsible gambling, to be launched later this year; and filling the gaps in evidence around advertising and harm with substantial new research commissioned by GambleAware on the effects of gambling advertising and marketing on children, young people and vulnerable groups Looking ahead, we will also be considering the issue of 16 year-olds playing National Lottery products as part of the next licence competition for the National Lottery. We will aim to gather evidence on this issue with sufficient time to consider it fully ahead of the next licence competition Changes to B2 stakes will be effected through regulations in Parliament. The move will need parliamentary approval and, in recognition of the potential impact of this change for betting shops, we will also engage with the gambling industry to ensure it is given sufficient time for implementation. In addition, in order to cover any negative impact on the public finances, and to protect funding for vital public services, this change will be linked to an increase in remote gaming duty, paid by online operators. The Chancellor will set out more detail on this at the relevant Budget To conclude, we want a healthy gambling industry that contributes to the economy, but also one that does all it can to protect players and their families, as well as the wider communities, from harm. We will work with the industry on the impact of these changes and are confident that this innovative sector will step up and help achieve the necessary balance" My Lords, that concludes the Statement.