Several Members have asserted that there has been an uncontrollable, unsustainable boom in gambling, but a study of the facts simply does not support that. There was an increase in the use of FOBTs after the Gambling Act 2005 was introduced, but the number of them on the high street has declined in the past three years. Betting shops are changing location, but there has been no explosion in their total number. Some Members have cited the gambling prevalence survey, which they say shows a 50% increase in problem gambling, but that increase is from 0.6% to 0.9% in problem gambling, according to surveys taken between 2007 and 2010. The change in numbers in those two studies are within the margin of error, so not necessarily statistically significant, and other studies since 2010 have demonstrated that instances of problem gambling are declining. That is why we must have a sensible evidence-based approach.
The scenario that the Labour party paints about gambling on the high street, the prevalence of FOBTs, and the clustering of betting shops, was created entirely by the 2005 Act. Was the decision of the then Labour Government based on robust evidence and science? No. The Act perhaps had good intentions, but it has had massive unintended consequences. When Richard Caborn gave evidence to the Select Committee, he was asked why the previous Government settled on having four FOBTs in betting shops—what was the reason for that number? He responded:
“There was no magic, scientific arrangement for four, I can honestly assure you. It was an agreement saying what was reasonable and what we believed—with the evidence that we had—was proportionate at the time. That is exactly how it happened.”
It was their best guess, and it has led to the clustering of FOBTs on the high streets. Because there is demand for FOBTs and not enough premises to play them in, bookmakers have opened new betting shops so they can have new terminals.I was interested in the shadow Minister’s response to my earlier intervention when I said that, on face value, the wording of the Labour motion suggested that local authorities could retrospectively change the number of terminals in a shop, but only downwards. I think that refutes the idea that the motion is localist or about giving powers to local communities in any way. If it was, it might do what the Select Committee recommended and give local authorities the power to say, “Perhaps we will have more terminals in fewer shops, and fewer shops on the high street” and have the power to make that decision. This is not a localist motion but one in which the Labour party is asking councils to do what it wants—close betting shops and get rid of FOBTs altogether.
6.28 pm
Pat Glass (North West Durham) (Lab): In the little time available I will restrict my remarks to the impact of FOBTs on increased criminality and money laundering on our high streets. We might criticise the Gambling Act 2005, but it clearly states that gambling machines must prevent
“gambling from being the being a source of crime and disorder, being associated with crime and disorder, or being used to support crime”,
yet that is exactly what is happening on our streets. These machines are being used to launder millions of pounds of money from criminality, drug dealing, loan sharking, people trafficking and so on.
There is a particularly nasty crime family in my constituency, and the Home Secretary has spoken on numerous occasions about the good work that County Durham has done to tackle organised crime. That crime family in my constituency has been moved on from “cash for crash”, drug dealing and so on, but where are they now? They are all over these FOBT machines. The Remote Gambling Association admitted in September that FOBTs represent a
“high inherent money laundering risk”.
The European Union is likely to include the machines in directive 4 on money laundering, and I would be interested to hear what the Minister thinks about that. Even the United Nations office on drugs and crime has warned that these games are used by organised crime to launder cash. The EU, the UN and even the Government recognise how dangerous this is. Despite the assertion from the gambling industry and the Association of British Bookmakers that they fully comply with the law, it is clear that, however inadvertently, these machines are now an integral and increasing part of the machinery of organised crime and money laundering. In the little time I have left, I plead with the Government to take seriously, in their review, the impact of FOBTs on money laundering and their increasing use, and to limit the stake.6.30 pm
Tracey Crouch (Chatham and Aylesford) (Con): This is a serious issue, one that I have campaigned on locally and spoken on in this House. I hope the shadow Minister will look at my previous contributions before we go on local radio tomorrow morning and he will see what I have said on this issue in the past.I will not be supporting the Labour motion this evening. I will be supporting the Government’s amendment, because a lot of progress is being made. The tone of the debate—that the proliferation in our high streets is the Government’s fault—is a bit rich when Labour’s 2005 Act, which liberalised much of the regulations and legislation, has caused the problem we are all now concerned about.
I share the concerns of many Members on both sides of the House about the impact that FOBTs are having on our constituents, but it is wrong and misguided for Opposition Members to say that the issue is applicable only to those in deprived areas. I represent a constituency with areas of multiple deprivation. The figures for the amount being gambled in FOBTs in those areas are the same as those for the amount being gambled in the much more affluent areas of Kent, such as Sevenoaks and Tunbridge Wells, so it is difficult to say that this issue is confined to more deprived areas.
It is important to consider the evidence, collect all the necessary data and ensure that we respond accordingly. My only concern, if I were to have one criticism of the Government’s policy, is that that should be done more quickly. Having an interim report early next year and a report later in the autumn will not be quick enough to deal with the issue, because it is an increasing problem. I am not opposed to giving councils more flexibility to
deal with clustering, but the problem is not exclusive to bookmakers. As a consequence of previous legislation, it is also the case with payday loan companies, pawnbrokers and licensed premises.
We do not necessarily need legislation to deal with this problem. Conservative-led Medway council has been working with other organisations and has implemented a voluntary code of conduct with the ABB to try to ensure that we deal with problem gambling directly. That is a much more sensible way forward and I look forward to seeing the outcomes of that partnership.
6.33 pm
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op): It is a pleasure to follow the hon. Member for Chatham and Aylesford (Tracey Crouch). She took part in an Adjournment debate I secured in April on this subject, and she agreed that we should give local authorities the opportunity to provide part of the solution. I understand that she will not be voting for the motion, but the Government should listen to the spirit of what she has said, particularly on the rapidity of the research—that was a point well made.You can get odds of 66:1 on Fulham winning the FA cup this season, Mr Speaker. I had my usual annual bet before the third round. Both Fulham and Norwich tried to lose, but we are still in the cup. I mention that to make the point to the hon. Member for Shipley (Philip Davies) that not everybody who has concerns about FOBTs is anti-gambling or views it as anathema.
The Under-Secretary of State for Communities and Local Government, the hon. Member for Grantham and Stamford (Nick Boles) has indicated from a sedentary position several times during the course of the debate that the number of FOBT machines has gone down, but that is not the case in my constituency. The point of the motion and the debate is about those areas where the number of machines and betting shops is increasing. I invite him to come with me to Cambuslang main street, in my constituency, a small main street that now has five betting shops, each with four machines, within 200 yards of each other. Before my Adjournment debate last April, I visited several betting shops in my constituency, and in Glasgow close to my constituency and in London, and each time I saw people on the machines for long periods putting in significant amounts—I could see that just by standing there. The Government must take cognisance of that, instead of just saying that the number of machines has fallen. This is a problem about proliferation, as my hon. Friend the Member for Eltham (Clive Efford) said at the start of the debate.
My interest in this subject arose in late 2011 when a constituent came to me having lost £25,000 in a single month on a machine in a betting shop in my constituency. It was no surprise to me that the betting shop was in one of the most deprived parts of my constituency. He came to me not because he thought he had a problem, but because he thought the machines were fixed. That underlines the point. I spent some time with Hamilton gamblers’ anonymous. Strikingly, several younger people in that group had accepted they had a problem, had gone for help and were trying to resolve their issues, but they had a problem relating to these machines. The situation was very different with the older people in that group. The Government ought to take that seriously.
We have heard a lot about the staff in the shops. My hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) knows from his experience that people in those betting shops often feel under pressure not to report things. They have said very clearly that they want to be bookmakers, not bouncers, and that they find themselves intimidated into not reporting incidents. All these are important issues, but the proliferation and concentration of shops in particular areas is the big issue that the Government should address first.
6.36 pm
Fiona Bruce (Congleton) (Con): Some 400,000 people in this country are problem gamblers and 3.5 million are at risk of developing a gambling problem. These are not small numbers. Furthermore, 50% of problem gamblers reporting to the National Problem Gambling Clinic say that fixed odds betting terminals are a disproportionate cause of problem gambling. We can understand why that is when we hear that these high-stakes machines can take bets of £100 per game and that up to £1,800 can be lost in an hour. Every year in the UK, people lose more than £1 billion on FOBTs, of which problem gamblers lose £300,000.Users do not need to be addicted for catastrophic problems to be caused to them and their families. It is not just an individual problem, but a grave social and public health issue that we need to recognise and deal with. Phill Holdsworth, head of external affairs at Christians Against Poverty, says:
“Where we work with families…where one member…has a problem with gambling it is very difficult and often impossible to provide any form of debt solution. It is not possible to put forward a solution without them receiving help or support for their addiction. This means the other family members”
continue to suffer. He continued:
“A debt solution is very difficult to apply when gambling problems are present.”
Problem gambling costs society £3.24 billion a year, and the addition of each problem gambler severely affects the lives of about eight individuals around them. As such, about 3 million people are now affected by problem gambling—every one an individual, every one a blighted life, many of them children. We urgently need a concerted Government approach and—I believe—a cross-party approach to address the economic, social and health costs associated with problem gambling. The Salvation Army, whose work I pay tribute to in this respect, says:
“Problem gambling particularly affects the young… Problem gambling amongst young people is an emerging public health issue. In the UK, over 10% of children who gamble are problem gamblers, whilst 18% of them are at risk gamblers.”
I agree with the phrase used by the hon. Member for Rutherglen and Hamilton West (Tom Greatrex), when he said that many people viewed gambling as anathema. I do. We need to review our whole approach towards gambling. The average treatment for a problem gambler costs £675, meaning that £274 million would be required to treat all problem gamblers in the UK, yet the gambling industry’s contribution is just £5 million.Nigel Adams (Selby and Ainsty) (Con): I understand that the terminals generate about £300 million of tax revenue. Given my hon. Friend’s comments, has she considered the impact that Labour’s proposals might have on the Exchequer?
Fiona Bruce: They might terminate that amount of revenue, but the gross gambling yield for the industry is £5.6 billion a year. I consider inadequate a contribution of £5 million to research, education and treatment activities related to gambling, which equates to less than 2% of their income. As I say, we need a wholesale review.
I oppose the Opposition motion, which is wholly inadequate, not least because the hon. Member for Eltham (Clive Efford), who introduced it, said that the motion was not about problem gambling. Well, it should be. I support the Government amendment, but I exhort the Minister to expedite the research and extend the Government’s work on the devastating causes and consequences of all problem gambling, not least for the sake of our next generation.
