Thursday 19 March 2015

Senedd Goes For Broke

Fixed-odds gaming terminals and online gambling were in the sights of
AMs during the latest members debate at the National Assembly.
(Pic : The Mirror)

There will be no Casino Royale jokes. Hopefully that "row" has burned itself out at last. It was light-hearted at first, but watching AMs and the media scramble over each other to be the most outraged was like being strapped into a bottomless chair and taking a pounding to the balls.


Putting that aside, AMs are capable of doing their jobs properly discussing more serious matters. The latest individual members debate, held yesterday, was on the impact of gambling.

The motion :
  • Recognises the impact gambling has on society - especially the proliferation of online gambling - and acknowledging the social and health damage gambling causes.
  • Calls upon the Welsh Government to :
    • develop and implement a strategy to deal with the consequences of gambling
    • discuss devolution of gaming machine licensing with the UK Government
    • work with the gambling industry and interested parties to ensure the right amount of funding is being spent in Wales to deal with problem gambling


60-1


Mick Antoniw AM (Lab, Pontypridd) started things off by underlining the "risk of an epidemic of social problems as a result of unfettered gambling" (clip); in particular online gambling – said to be worth £10billion a year and set to increase – and fixed-odds betting machines, described as "the crack cocaine of gambling" where it's possible to bet £100 in 20 seconds.

Mick isn't opposed to gambling, saying he bets on horses and constituents have benefited from National Lottery funding. However, he was particularly concerned about "unashamedly intrusive" gambling advertising which is increasingly targeted at the young, as gambling has the "potential to wreck lives". He said sport is becoming a "vehicle for bespoke gambling odds" which are also normalising gambling.

73% of all adults have gambled at some time, with problem gambling affecting between 1-1.3% of adults (equating to 20,000 people in Wales) and 2% of 12-15 year olds (~3,000 in Wales). He criticised the lack of data as these figures are five years out of date and reliant on self-reporting. Also, voluntary funding from the industry comes to an end soon, meaning funding for gambling problems in Wales will amount to just £25,000.

Nick Ramsay AM (Con, Monmouth) carried out personal research on gambling websites, saying that although it was easy to find free £10 bets and big bonuses, it harder to find the Gambling Commission and Gamblers Anonymous (clip). The Gambling Act 2005 also relaxed casino memberships, while advertising uses well-liked celebrities. Subsequently, the internet has "made gambling quick, easy and accessible".

He criticised the fact the Welsh Government didn't add questions on internet gambling to the National Health Survey, as gambling has an impact on mental health, with problem gamblers suffering low self esteem, depression, stress and are more prone to substance abuse. There's also a knock on impact on families, perhaps more so than other addictions.

Simon Thomas AM (Plaid, Mid & West Wales) argued the motion "didn't go far enough", calling for a complete ban on gambling advertising, online gambling and free bets (clip). He said the issue boils down to two main areas – government approval for gambling and commercialisation.

Simon's "philosophically opposed" to the National Lottery (Independence Minutiae : National Lottery), and went so far as saying he would be happy to see it end, as it's wrong for governments to approve gambling, which takes money away from society's poor. BBC support is also contrary to the its charter, while the Gambling Act "opened the floodgates", making gambling "a 24/7 activity like shopping" – saying Llanelli has been "disfigured" by betting shops stocked full of fixed-odds machines. The advertising we see for gambling is the sort which we now reject for alcohol and smoking.

Simon raised an important point about gambling's worrying impact on politics. Benjamin Netanyahu's recent campaign was backed by newspaper itself funded by American betting magnate, Sheldon Adelson. Australians reportedly lose more money betting than any other nationality, but poker machines (aka. "pokies") have influenced politics there. Meanwhile, senior Labour politicians have received money from gambling companies.

Welsh Lib Dem leader, Kirsty Williams (Lib Dem, Brecon & Radnor), said this issue "creates tension between personal freedoms....and the role of the state to protect individuals from harm" for liberals (clip). She said fixed-odds machines enable people to, "burn through thousands of pounds in a short space of time".

Kirsty cited Gambling Commission figures, which say Wales placed £1.6billion worth of stakes on fixed-odds machines in 2012, and it's often the people who can least afford to do so who use them. She wondered what this money could've done for the Welsh economy, and whether gambling has moved from the innocence of her grandmother's "odd flutter on Grand National" to constant advertisements which push the boundaries of liberalisation.

John Griffiths AM (Lab, Newport East) highlighted the impact gambling's had on Newport, saying he knows people who've lost their benefits in arcades the day they receive them (clip). He described the National Lottery as a "regressive tax" which, although Newport is a big contributor, has been least favoured in terms of distribution of funding. John emphasised the need to engage with the gambling industry at a Welsh level as they're willing to discuss things like placing in-built mechanisms in machines to prevent users losing massive amounts of money.

Darren Millar AM (Con, Clwyd West) said we "fail to comprehend" the damage gambling does to the productive economy, as a single fixed-odds machine can raise £1million a year, and £25million in his constituency alone (clip). He's seen families destroyed, marriages broken and people lose their homes. Darren said prevention is important, but it's right that current addicts get access to services, praising Cardiff's Beat the Odds project, which he would like to see rolled out across Wales.

Bethan Jenkins AM (Plaid, South Wales West) was eager to point out her "FinEdBill" included statutory measures to deal with things like gambling, and she would've liked more support from government AMs at the time (clip). During that process, Swansea Council said they would like planning powers to control betting shops. Bethan admitted that wouldn't solve online problems, but changes to the planning system would provide enough flexibility "to put creative ideas forward", and she hopes the promised financial inclusion strategy (which the Welsh Government promised after she withdrew the Bill) will reflect that.

Bethan said young people need to be taught the dangers and read about others' experiences – like those of John Hartson (here) – as you "can't see it in yourself sometimes". She has heard cases where people have gone to credit unions to get loans to buy things for their family but where it soon becomes clear they were spending money on gambling apps instead of saving. Instead of seeing gambling as "something to enjoy", people should see that it impacts everyday lives. Bethan said firm action is now needed instead of talk about strategies.

Janet Finch-Saunders AM (Con, Aberconwy) largely repeated what others said about fixed-odds machines (clip), saying £27.8million has been spent in Aberconwy and more than £1million lost, with betting companies targeting areas of deprivation and high unemployment. She said gambling addiction should be recognised as a mental illness in its own right, citing evidence of people who receive treatment no longer gambling after 6 months. However, services are scattered, with a constituent able to get help in Chester, but she couldn't get funding for that help.

Responding on behalf of the Welsh Government, Communities & Tackling Poverty Minister, Lesley Griffiths (Lab, Wrexham) described problem gambling as a cross-portfolio issue (clip), which in most cases leaves families and gamblers worse off even if it's seen as source of income during difficult times.

The Gambling Act 2005 didn't give Assembly any extra powers. The Welsh Government can't legislate, but can address contributing factors; as a result she's asked the Gambling Commission to provide Wales-only data. The Smith Commission recommended giving the Scottish Government power over fixed-odds machines, but there are currently no proposals for devolution of betting machine licensing to Wales.

There's no medical intervention for gambling addiction, only psychological interventions. In turn, it's only offered by the NHS when addiction affects social functions or is co-morbid with another mental illness.

Wrapping up the debate, Jocelyn Davies AM (Plaid, South Wales East) admitted she "intensly dislikes gambling" (clip), although she accepts many people like it without any real harm. Although the industry supports various initiatives, "self-regulation can only go so far", with smart phone apps and gaming machines designed to be as compulsive as possible, and a quarter of profits on the machines coming from problem gamblers.

Jocelyn said there needs to be a move beyond encouraging "responsible gambling" to actively reducing harm. She saw 15 adverts for gambling in one evening on television and there's also a need to limit use of credit cards for online gambling. As you might expect, she argued Wales should have the same powers over gaming machines as those offered to Scotland.

The motion was approved with 36 votes for and 14 abstentions.

No Dice?

Text DIE to 80085
(Pic : via youtube.com)

The first link above is from near enough two years ago to the day, while both are amongst the site's most popular posts. I also intend to (and eventually did - see link) come back to gambling as part of the Vice Nation series, though there's no date in mind.

When you do it right, gambling can be fun and entertaining – it's even a professional sport in the case of poker, and nobody thinks of bingo and raffles as gambling (which they are) - so I wouldn't agree with what Simon Thomas said. It's the hardcore who think there's a "system" or a "zone" which will reward them after a string of losses who are most at risk.
As the figures quoted during the debate indicate, the numbers of problem gamblers are relatively small.

However, It's worth remembering that the 2007-2008 financial crisis was, at its most basic level, a result of dangerous gambling by a very small group of people, while the housing market and stock market are (calculated) gambles in their own right.

You can easily brush this debate off, saying AMs are being humourless puritan soldiers of the nanny state (and sometimes they are), but that would be foolish and wrong.

My first instinct is that what people do with their own money is their own business, but – as many AMs said during the debate, or at least hinted – as soon as that crosses a line to become a problem that seriously impacts health, personal lives or household finances it's worth considering if things have gone too far.

Of course, the Welsh Government can do very little as gambling policy is non-devolved. Giving them powers over fixed-odds machines and planning policy for betting shops would make a difference, but it's only reacting to a few select symptoms and wouldn't treat the illness.

The reality is the Gambling Act 2005 will have to be repealed or re-written if politicians are concerned that gambling liberalisation is having such a negative impact. I believe liberalisation is right, and presumably more so than AMs and charities. However, liberalisation shouldn't mean poor regulation or a "free for all", and regulation should never have been left partly in the hands of betting companies themselves.

Ultimately, the public need to be able to read the odds, knowing when and when not to place a bet, or when to walk away - which brings us back to financial education, even basic maths and even, you could argue, common sense.

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