My Lords, these regulations are intended to increase existing stake and prize limits for some, but not all, categories of gaming machine. Gaming machines are an important source of revenue for many sectors of the gambling and leisure industries, and these measures will provide support for businesses which continue to experience difficult trading conditions.
The challenges faced by individual sectors, including family entertainment centres, bingo clubs and pubs, have had a marked effect on gaming machine manufacturing and supply businesses. According to the Gambling Commission, the total number of machines in the regulated industry fell by around 10% between 2010 and 2012. The Government consulted earlier this year on proposals to increase stake and prize limits for some categories of gaming machine. The Government received many representations in support of their proposals and remain confident that increases will not risk the licensing objectives in the Gambling Act, which rightly include the protection of children and vulnerable adults from being harmed or exploited by gambling. In fact, the Government have secured commitments from the gambling industry to develop, trial and implement strengthened player protection measures to help to build and maintain the public confidence necessary to accommodate the increased stake and prize limits. Such measures are particularly relevant to the casino industry, where gaming machines offer significantly higher prizes than other sectors of the industry.
Increases to stake and prize limits vary depending on the category of machine and the premises in which they are located. The level of increase is highest in casinos, which represent an appropriate venue for high stake and prize gambling given the stringent regulatory controls they are required to uphold. The new limits provide greater consistency with the level of gambling that is expected to take place in a casino and will stimulate capital investment in the industry, allowing it to compete more effectively internationally.
For machines found in clubs and pubs, the level of increase is lower. The Government are persuaded that these increases will provide support to businesses while remaining consistent with the licensing objectives. The Government propose to maintain stake and prize limits for all types of machine found in seaside arcades and travelling fairs, with the exception of penny-fall machines, where a small increase is proposed. This will minimise any potential risk to public protection from gaming machines accessible to children.
These regulations have been considered by the Secondary Legislation Scrutiny Committee, and I am grateful for its contribution. The committee quite rightly identified the importance of minimising problem gambling, particularly in the context of young people, and requested the Government to keep this issue under close review alongside their efforts to help the gambling industry.
I assure noble Lords that the Government closely monitor the problem of gambling and welcome the contribution of the Responsible Gambling Strategy Board and the Responsible Gambling Trust, working
with the industry to strengthen existing mechanisms to monitor the impact of gaming machines, stake and prize limits both economically and socially.
Overall, although it is an important growth measure for many struggling businesses, I believe that this package of measures strikes the necessary balance between creating the conditions for industry growth and maintaining the licensing objectives which underpin the Gambling Act 2005, and I commend the regulations to the Committee.