My Lords, I am grateful to noble Lords who have spoken, who have in many ways captured the extent of the debate—the economic problems being faced by many sports clubs and other commercial enterprises around the country and, at the same time, a natural and right concern, which the Government share, about protecting vulnerable adults from exploitation.
The noble Baroness, Lady Jones, asked a number of specific questions, and I want to give them an appropriate response as best as I am able. But to respond quickly to my noble friend Lord Moynihan, who talked about the importance of gaming machines as a revenue stream for sports clubs and other private members’ clubs, that is correct. In the category of machines that will be found there are the B4 machines to which he referred, as well as the B3A and C machines. The clubs
observe the Gambling Commission’s guidance and codes of practice to ensure effective social responsibility arrangements are in place.
The noble Baroness asked about research into the effects of gambling. I reassure her that work is already under way to advance our understanding about gaming machines and their impact. The Responsible Gambling Strategy Board, an independent expert advisory body, is working to develop a strategy which will review the impact of regulatory change and any associated changes in gambling behaviour, while the Responsible Gambling Trust is carrying out research which aims to better understand how people behave when playing gaming machines and what will help people to play responsibly. Again, in the context of this, it is important to realise that one reason for the decline is the growth of online gambling, which has no regulation or supervision at all. So drawing people to enjoying this form of leisure in a reasonable way in regulated areas would seem to help towards that. The work being carried out will further our understanding of the social impact of regulatory change and allow for the wider cost-benefit analysis on the impact of these changes to which the noble Baroness refers.
The noble Baroness asked about the justification for intervention and said that there should be an onus on the industry to justify proposals for stake and prize increases. The Government agree with that approach and are satisfied that sufficient evidence has been put forward by the industry to justify the stake and prize limits that the regulation proposes.
On strengthening player protections, the Government have consulted extensively and invited representations about research as part of the review. I should say to my noble friend Lord Moynihan that there were many representations and responses to the consultation received from sports clubs to this, and they were broadly in favour of the measures being put forward for the reasons that he has outlined. The Government have received advice from the Gambling Commission and the Responsible Gambling Strategy Board, and there is scope to increase the stake and prize limits for some categories of gaming machine, provided that the industry makes progress in strengthening player protection. It has twin sides; as the industry gets better at providing protection, it may be possible to consider further changes to the limits. That is the right way in which to proceed.
The noble Baroness, Lady Jones, referred to the risks to children, particularly from the increases in stake and prize limits to penny falls and coin pushers. The Government share the view that a cautious approach should be taken to products accessible by children. It is for these reasons that the Government have rejected the proposals from the industry to increase the stake and prize limits for reel-based gaming machines accessible to children and all other category D machines, with the exception of coin pushers.
The noble Baroness also referred to fixed-odds betting terminals, the so-called category B2 gaming machines. As part of the review, the Government sought quantifiable evidence on the impact of a reduction in stake and prize limits for these machines. However, the evidence
received was inconclusive and the Government have been advised by the Gambling Commission and the Responsible Gambling Strategy Board that a precautionary reduction in stake and prize limits is currently unsupported by the available evidence. Despite this, the Government remain concerned about these machines and their potential association with an elevated risk of gambling-related harm. The Government have therefore made it clear that they will consider the future of the B2 machine to be unresolved. As the noble Baroness noted, the Prime Minister confirmed the Government’s commitment to monitor these machines to ensure a fair and decent approach that prevents problem gambling, and that is exactly the course of action that the Government are taking here.
As to the £18,000 per hour loss rate sometimes cited for B2 machines, this is astronomically improbable, one might say. It is an extreme calculation. However, the Government have acknowledged that it is quite possible to lose or win several thousand pounds within an hour within a normal range of behaviour on a machine. It is for these reasons that the measures I have outlined are so important and why the Government consider the future of these machines to be unresolved.
On betting-shop clustering on high streets, to which the noble Baroness referred, the Department for Culture, Media and Sport is in regular discussion with DCLG Ministers about the issue. I can certainly reassure noble Lords that these discussions will continue and that evidence will be monitored.
The Government are satisfied that the measures that we are debating today will bring benefits to businesses and sports clubs through much needed revenue and will allow consumers to enjoy a broader range of products in a responsible way. On the basis that the industry has committed to enhance its social responsibility measures and that work is under way to allow for proper assessment of the impact of these regulations, I am confident that the risk to problem gamblers and vulnerable people is minimal.