24 Jul 2012

MPs call for relaxation of rules on gambling

A committee of MPs proposes that betting shops and casinos should be allowed to operate more high-stakes gambling machines.

MPs say more high-stakes gambling machines should be allowed (Reuters)

In its report the culture, media and sports committee suggests a relaxation of current rules to allow casinos up to 20 high-stake machines while betting shops should be able to install more than the current maximum of four such machines.

The report says that allowing more such machines, which accept stakes of up to £100 and offer prizes of up to £500, would prevent betting shops from clustering together in town centres.

Speaking in the House of Commons in February 2012, the Minister for Tourism John Penrose said there were currently 32,000 fixed-odds betting terminals in operation in the UK.

But at the time the minister rejected the description of such machines as “the crack cocaine of gambling”, saying that gambling addiction, although serious for those concerned, only affects a small number of people and the causal link is poorly understood and needed more research.

Conservative chairman of the committee, John Whittingdale, said the “reluctantly permissive” tone of legislation over the last 50 years now looks outdated:

“Gambling is now widely accepted in the UK as a legitimate entertainment activity. We took a lot of evidence in this inquiry, from all sides, and while we recognise the need to be aware of the harm caused by problem gambling, we believe that there is considerable scope to reduce and simplify the current burden of regulation and to devolve decision-making to a more local level.”

Problem gambling in Britain 
73 per cent of the adult population of Britain gambled within the past year.
Problem gambling levels in Britain are equivalent to other European countries.
Some estimates suggest problem gambling among prisoners may be as high as 10 per cent.
A 2009 IPSOS Mori survey found 2 per cent of 12-15 year olds were problem gamblers.
Less than 1 per cent of problem gamblers who would benefit from treatment receive it.
(source: Gamcare written evidence to CMS committee)

The select committee report called on ministers to develop an information campaign to encourage the relatives of problem gamblers to seek help. There also needs to be research into the problem of gambling amongst children.

Betting online

The growth of online gambling was throwing up new issues, as the minister Mr Penrose told the House in February:

“remote gambling is changing how people gamble. We need to make sure that such gambling is properly controlled and regulated, which is why we propose to introduce new regulations on it in due course.”

In its latest report, “The Gambling Act 2005: A bet worth taking?”, the cross-party culture, media and sport committee concluded that high taxes had pushed internet operators into being based abroad, and called for changes to make it more attractive for such businesses to base themselves in the UK.

It also called for government to set the general rules in relation to gambling and for local authorities to be able to decide whether to allow new casinos to open.

Mr Whittingdale said: “There are a number of local authorities who have sought permission to establish casinos and in our view there isn’t any reason why they shouldn’t be allowed to if it is for the benefit of the local community.”

Controversial legislation

Proposed by the then Culture Secretary Tessa Jowell, the controversial Gambling Act 2005 originally intended to allow for the introduction of super-casinos across the country, with fruit machines offering unlimited payouts, But in the face of fierce public opposition from MPs, church groups and charities, as well as sections of the press, the legislation was watered down, and super-casinos were abandoned in favour of the creation of a Gambling Commission to regulate the industry.

Now the culture, media and sports committee says the Gambling Commission is too bureaucratic and expensive, and has called for the reduction of fees payable to the regulator.

Malcolm Moss of the National Casino Industry Forum said: “We are very pleased the committee has recognised the value, integrity and achievements of the British casino industry.”