House of Lords calls for ban on gambling sponsorship in sport

The House of Lords Select Committee on the Social and Economic Impact of the gambling industry has called for the end of gambling sponsorship in sport and the requirement for people to open bookmaker accounts or place bets to view live streams on gambling sites and apps.

In a 194-page report containing 66 recommendations targeting the sector, the committee proposes to prohibit gambling brands from appearing on shirts and sleeves, as well as inside and outside stadia advertising and in print programmes.

However, the report recommends these restrictions should not take place in the Premier League or other sports before 2023, to give time for alternative funding sources to be found.

The group recommends operators be prohibited from streaming UK matches on betting apps, as well as stopping the FA from selling broadcast rights to licensed gambling firms.

In addition, the group has called on the Gambling Commission to ban all promotional marketing to individuals unless they have agreed to take part in VIP schemes.

The House of Lords has called for the setting up of a “statutory independent” Gambling Ombudsman Service, similar to that used in the financial services sector, to mediate disputes between operators and gamblers. It has recommended that membership of such a body be a licensing condition.

The committee has rubbished calls for the primary authority in gambling to be transferred from the Department for Digital, Culture, Media and Sport (DCMS) to the Department of Health and Social Care, claiming there would be “no practical benefit” and even potential disadvantages in doing so.

However, the committee said DCMS should accelerate delivery of the forthcoming review of the 2005 Gambling Act.

“The election is now six months behind us, but nothing has happened and no dates have been set. We expect DCMS, as the owner of the policy for gambling, to take this forward with some urgency,” the report asserts.

To address gaps in Gambling Commission funding, the committee has called for an increase in the fines levied against bigger operators and a “greater willingness” by the regulator to strip operators of licences.

There are also calls on the Gambling Commission to impose a mandatory levy on operators to pay for research, education and treatment of problem gamblers.

“The government should work with the Gambling Commission to devise a new funding structure in order to provide it with more flexibility and allow it to react and adapt to fast changing regulatory requirements,” the report claims, echoing prior comments made by the National Audit Office and Public Accounts Committee.

As part of efforts to counteract gambling-related harm, the House of Lords recommends the Gambling Commission establishes a new testing system for all games based on their addictiveness and appeal to children.

This includes the creation of a category system for online gambling products and the barring of any approval on a game which scores too highly in testing. As part of this, individualised stake limits should be enforced based on the product’s score.

The so-called “equalisation of speed of play and spin” in line with games played in retail casinos, betting shops and bingo halls is also among the proposed measures.

To deal with a potential rise in the black market due to the imposition of stake limits, the committee has called on the Gambling Commission and banks to establish a scheme to block payments to unlicensed operators.

Targeting affordability, the committee has said it should be a condition of operator licences that all data on consumer affordability, including failed checks made, be shared with other licensed operators.

The group has added its support for an over 25 VIP scheme entry age limit and the increase in the minimum age for lottery participation from 16 to 18.

Addressing the committee’s report, Lord Grade of Yarmouth said the behaviour of some operators had shocked the committee, particularly in the targeting of vulnerable individuals.

“Urgent action by the government is required. Lax regulation of the gambling industry must be replaced by a more robust and focused regime which prioritises the welfare of gamblers ahead of industry profits,” Lord Grade said.

“Addiction is a health problem which should be treated by the NHS and paid for by gambling industry profits. The government must impose a mandatory levy on the industry. The more harmful a gambling product is, the higher the levy the operator should pay.

“Only time will tell if the harm caused by gambling has been exacerbated by the coronavirus lockdown,” Grade added.