That is a matter for the Treasury, but I agree with my hon. Friend that a 15% rate would have a damaging impact. The Remote Gambling Association has suggested 5% as a reasonable level, but the Treasury will obviously have to examine that and strike a balance. The Treasury will need to bear in mind the risk not only that its revenues might suffer if consumers were driven from the licensed market to the black market but that consumers would suffer, as they would
have none of the protections that would result from the new licensing requirements in the Bill. That seems to be at the heart of the issue, so although it is important that we should debate all the provisions in the Bill, the critical question will be determined not by the Minister but by her colleague in the Treasury.
One or two other concerns have been raised, particularly about the fact that this is an enormous new responsibility for the UK Gambling Commission, which will have to issue licences to a huge number of operators based in all parts of the world. The Select Committee had some concerns about the commission’s ability to do that and about the resource implications. The Gibraltar betting and gaming association has raised the concern that the change could result in brass plating, with the Gambling Commission merely giving an operator a tick because it does not have the resources to go to the other jurisdictions to question the regulating authorities. The UK Gambling Commission will have to rely on other regulators in a way not dissimilar from its reliance on those on the white list, so if it is to accept the regulatory approval of other regulators in different countries it is important that it satisfies itself that those regulators are doing a good job. That might require additional resources, and we expressed some concerns about the degree of the extra responsibilities that will be placed on the commission.
Let me return to the question of the consequence of consumers being driven into the black market. The industry is highly competitive and a very small difference in cost can result in operators offering more attractive odds than the licensed operators. On those grounds, there is a risk that people will look towards the black market.