Lord Hay of Ballyore (DUP)

My Lords, I shall be very brief. I want to make a few comments regarding the stake limits set by the Gambling Act 2005 (Operating Licence Conditions) (Amendment) Regulations 2024. I am unsure of the rationale set out in the regulations for setting a limit of £5 for over-25s. Given that terrestrial gambling is limited to an average of £2 across all gaming machines, and given the higher risk of gambling harm from online gaming, it seems difficult to understand what the Government’s rationale is in setting a limit of £5 for remote operators in these regulations. It seems almost too obvious to point out, but most terrestrial gambling operators close, while online casinos are open 24 hours a day. How can a higher limit be appropriate for a more harmful product that cannot be switched off? A holder of a remote licence, given the continuous operation and the much lower level of fixed costs, such as premises and staffing costs, is much more profitable than its land-based equivalent. Remote licence holders have a gross gambling yield that is almost twice that of their terrestrial equivalent. Given that the harm is greater online and they accrue more revenue, it is difficult to understand why the limit has been set at such a high level. The Gambling Commission, as part of its risks algorithms data study found that 52% of gamblers placing stakes of above £2 and up to £5 were most at risk of gambling harm. Given the increased risk, it seems difficult to understand why the limit has been set in such a way that those most at risk of gambling harm are not protected from that risk. It is my view that even a £2 limit on remote stakes is too high. Even when spinning at a very low stake size of between £1 and £2, evidence from the Gambling Commission survey in 2021 highlights that more than one in five gamblers suffer high or medium levels of harm. Additionally, online slots are associated with binge gambling and long gambling sessions, accounting for over 70% of single-product gambling sessions that last over three hours. Clearly, remote gambling is highly addictive and a sustained harm that people find difficult to escape from. If £2 is too high a maximum for over-25s, it is clearly much too high a level for those aged 18 to 25. Given the difficulty faced by young people, the risk is much higher and the stake limits should be much lower. I am concerned that the evidence does not support a limit of £5 for over-25s and £2 for 18 to 25 year-olds. The clear evidence is that these limits should be lower. I urge the Government to think again and ensure that these regulations properly protect those who find themselves at risk of harm. I am concerned that, if these draft regulations are passed, the risks of remote gambling will not be reduced and they will have a limited or no impact on reducing gambling harm and protecting those who are most vulnerable. Unlike other noble Lords, I am not convinced that these regulations go far enough and do what needs to be done. We all know that addictive gambling creates major problems not only for the individuals involved but for the families who suffer in all this. The Government could go much further and look again at the issue and the regulations before us.