Clause 77 - Credit and inducements
Gambling Bill
Public Bill Committees, 30 November 2004, 4:45 pm

Mr Don Foster (Shadow Secretary of State for Culture, Media & Sport, Culture, Media & Sport; Bath, Liberal Democrat)
I beg to move amendment No. 196, in page 34, line 15, leave out subsection (3).
This is rather more complicated, so I hope that the Committee will bear with me for a few minutes.
The clause concerns restrictions on the offering of credit and inducements by operating licence holders. Credit is defined in subsection (4) as
''any form of financial accommodation''
excluding cash, cheques or debit card payments. Subsection (1) provides that the commission may attach to an operating licence a condition about the giving of credit in relation to licensed gambling activities; making offers or inducements designed to induce participation in licensed gambling activities; or being party to arrangements for inducing, permitting or assisting persons to gamble. There is a real range of issues about those opportunities.
For many people, the concern about problem gambling is concern about people who chase their losses. People who chase their losses—particularly, as evidence from elsewhere suggests, in relation to high-stake, high-payout machines—are the very ones likely to go in search of additional money when their funds run out. The amendment seeks to put a barrier in the way of people seeking to obtain additional credit on the premises as one means of reducing the likelihood of problem gambling.

Mr Richard Caborn (Minister of State (Sport and Tourism), Department for Culture, Media & Sport; Sheffield Central, Labour)
I understand the hon. Gentleman's concern and his reason for tabling the amendment. Operators of casino premises should certainly never offer credit, and the Bill prevents that. However, there is a significant difference between the licensee offering credit facilities and such facilities being offered by a reputable credit provider. We do not see any harm in the latter, as long as the credit provider is operating at arm's length and the licensee is not receiving any payment for that facility. It is worth noting that the practice is permitted in casinos and has been for some time. We are not aware of any problems rising from it but, if any problems emerge, the Secretary of State and the gambling commission will have specific powers to impose new requirements that better protect the consumer. I hope that, with that reassurance, the hon. Gentleman will be content and withdraw the amendment.

Mr Don Foster (Shadow Secretary of State for Culture, Media & Sport, Culture, Media & Sport; Bath, Liberal Democrat)
I am not entirely reassured, but these are matters that a number of Committee members may wish to return to later, so, for the time being, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 77 ordered to stand part of the Bill.
Clause 78 ordered to stand part of the Bill.
