Gambling Act 2005 (Gaming Machines in Bingo Premises) Order 2009

My Lords, in moving the Motion on the Gambling Act 2005 (Gaming Machines in Bingo Premises) Order 2009, I shall speak also to the Gambling Act 2005 (Variation of Monetary Limit) Order 2009. The first order is intended to help to address the severe economic downturn in the bingo industry by increasing from four to eight the number of category B3 gaming machines that bingo halls can offer customers. Category B3 machines have a maximum stake of £1 and a maximum prize of £500. In June last year it was announced that the Government intended to make such an increase in response to a campaign by the Bingo Association, a campaign that also attracted the support of Parliament. Such widespread cross-party support was influential with the Government in making our decision. The order is intended to help the bingo industry, which is facing difficult trading conditions. While the current economic climate is an issue for the gambling industry as a whole, there remains strong evidence that the situation in the bingo industry is particularly acute. A number of special circumstances apply to bingo halls. These include the fact that the industry’s business model means that there is very high demand for these machines during relatively short periods of the day—that is, between the sessions of bingo play. Also, while gaming machine entitlements in casinos, betting shops and adult gaming centres were increased through the 2005 Act in return for the taking on of enhanced social responsibilities, bingo halls retained the same gaming machine entitlements as they had under the Gaming Act 1968. Most important, however, is the role of bingo halls in local communities. They fulfil an important social function and provide a softer gambling environment, where the gaming machines offered remain ancillary to bingo. Of course there are risks attached to an increase in the number of these machines, not least with regard to their being seen to promote harder forms of gambling and problem gambling in general. That is not the case. These machines are already on bingo premises, while under the 2005 Act a comprehensive new system of regulation for gaming machines was established with consumer protection at its heart. The number one priority remains the protection of the public. That is why the Government rejected the Bingo Association’s view that the number of B3 machines should be increased to 16; we felt that that went too far. We have agreed on eight, which is consistent with the precautionary approach that we take to gambling regulation. It should also be borne in mind that all categories of gaming machines must comply with strict regulations and technical standards to ensure that vulnerable and problem gamblers are protected. Stringent controls on entry by under-18s to areas in bingo halls offering gaming machines are already in operation via the mandatory conditions attached to the premises licences. We can with confidence see this increase in machines without creating significant social problems. On the question of lotteries, the House will be aware that society lotteries are lottery draws run by charities, sports and leisure clubs to raise money for good causes. Few societies currently reach the present limits relating to the maximum proceeds and prizes for individual draws; at the moment the proceed limit is set at £2 million and the prize limit at £200,000. However, the Lotteries Council and the Hospice Lotteries Association argued that these limits were holding them back from raising significantly higher sums for good causes, particularly by preventing a number of societies from coming together to promote a larger one-off annual draw—for example, a Christmas bumper draw—and these arguments were reflected in both Houses. The Government have always been willing to consider representations made on behalf of charities and other bodies that benefit from society lotteries and, in response to those arguments, we announced last July that we intended to raise to £4 million the maximum proceeds for individual society lottery draws and that the top prize had also doubled to £400,000 for each draw. It should be made clear that the Government do not intend to raise the limit on maximum annual proceeds for society lotteries, which will remain at £10 million. The maximum £25,000 prize for society lotteries whose proceeds are below £250,000 will also remain unaltered. This level of increase, from £2 million to £4 million, is wholly consistent with the licensing objectives of the Act and achieves a satisfactory balance between providing a valuable boost to hospices and other bodies that raise funds from lottery draws and retaining the character of society lotteries. That view is supported by the Gambling Commission, which has advised that there is no evidence that an increase such as this would give rise to gambling concerns. The Government also recognise the unique position of the National Lottery and its enormous contribution to the public good. I therefore assure the House that we have considered the impact that the proposed increase in proceeds may have on the National Lottery and believe that such an increase would not threaten income for the good causes. Society lotteries operate on a quite different scale from the National Lottery. Moreover, they target different markets. People generally play society lotteries to support a cause rather than to win a prize, whereas playing the National Lottery is about the possibility of winning a life-changing amount, with the good causes a secondary consideration. The Government remain of the view that the suggested increase to society lottery limits will not affect that difference. However, to ensure this, we will ask the National Lottery Commission to monitor the impact of the revised limit on the National Lottery and ask for a report to be made three years after implementation. I commend the orders to the House.