Yesterday, on Monday 27 April 2020, the Public Accounts Committee held an oral evidence session on ‘Gambling Regulation: problem gambling and protecting vulnerable people’. Neil McArthur, the Chief Executive of the Gambling Commission and the Department for Digital, Culture, Media and Sport’s Permanent Secretary, Sarah Healey, appeared as witnesses.
The session raised several relevant points for the creative industries:
- Loot boxes: Neil McArthur noted that the Gambling Commission is very concerned about the blurring of lines between gaming and gambling, with specific reference to the issue of loot boxes. At present, the Gambling Act draws the line between gaming and gambling – to constitute gambling you have to be able to cash out in money or ‘money’s worth’. However, the Gambling Commission has been increasingly concerned for a number of years about the blurring of lines between gaming and gambling. There is particular concern around social casino games which appear to take a similar format to slot games.At the moment, if a game crosses the line and allows children to bet in video games and cash out, Neil McArthur stated his belief that the Gambling Commission is successful in prosecuting that. The Gambling Commission has also run sessions of support and awareness sessions for players and gamblers. Neil McArthur also said that the industry has been influenced by the Gambling Commission to start making positive steps.Neil McArthur also stated that where the lines are drawn between gambling and gaming is a matter for Ministers and Parliament.
- DCMS: A member of the Public Accounts Committee asked whether the Gambling Commission has provided any evidence or advice to the Government and DCMS on how to tackle what looks like or is gambling.Neil McArthur responded by stating that the Gambling Commission has not provided any specific advice other than what it has published so far on the issue. However, DCMS are aware of the problems and are working with the gaming industry on them.Neil McArthur also noted that in terms of operators who cross over into ‘gambling’ jurisdiction, (which, in short, means the games allowing players to cash out), out of 189 unlicensed activities, 24 were skins gambling sites.
- Government Review: Sarah Healey stated that DCMS has an interest in these issues from many different angles, as they are responsible for the gaming sector. The issue was also discussed a lot in the Immersive and Addictive Technologies report.However, she said that it is not for her to determine the scope of the 2005 Gambling Act and the review, but that these discussions are important developments and the fact the review is being set up suggests that any issues that come out will be of interest to ministers.Sarah Healey also said that there was not a specific timetable for the review yet. She is inclined to say weeks rather than months, but the impact of coronavirus may see delays to this as the department are currently working on more urgent work. She said that she will keep the Committee informed as things progress.
The Committee procedure can be watched in full here.