My hon. Friend is absolutely right. He undersells how much he knows about this subject; he is far more of an expert than me. When the Select Committee took evidence on gambling during a visit to Brussels, where we met European Union regulators and others in Europe, it was clear that levels of illegal gambling in countries with much greater restrictions than ours were far higher. We can predict what happens if the restrictions imposed are too onerous, because we have seen it in other countries. People go on to illegal sites. As my hon. Friend the Chairman of the Select Committee explained,
the efforts made to try to stop people doing that are not particularly successful, as they can be got round. If the focus is on closing down internet sites, they will immediately reopen elsewhere. If it is on blocking credit card payments, people will use PayPal and other methods to get round those restrictions too. It is a pointless exercise. People who want to get round these restrictions will do so. Other countries have proved that, because they have tried them all and they have all spectacularly failed. Nothing will change in this regard, because the Bill is not really about regulation but taxation.
I am concerned about the impact with regard to the Gambling Commission, which, like all quangos and bureaucracies, likes nothing more than a bit of empire building. I suspect that it has seen the Bill and thought, “My goodness me, all our Christmases have come at once!” Whereas before it has had to accept the licensing and regulation from the white list countries, and accept the companies that are considered to be good enough, it can now get its teeth into every single one of them. It can go jetting around the world checking out whether all these individual companies should be a given a licence. Lord knows how many extra people it will need in order to satisfy itself that those companies are fit and proper to advertise their wares in the UK and get themselves an appropriate licence. This Bill is a bureaucrat’s dream. I would be interested to hear what steps are being taken to stop any empire building by the Gambling Commission, because I am sure that would be an unintended consequence of the Bill, allowing a huge bureaucracy to grow on the back of it.
I do not know what the great problem was with the white list. During our Select Committee hearings, I was scrabbling around trying to think of examples of problems. Only one sprang to mind, which was a notorious case where the legendary gambler, Barney Curley, pulled off a huge coup one day when he had four horses running at different meetings around the country; I think that one was somebody else’s that he used to train. The first three won and the last one, fortunately for the bookmakers, lost, but with three out of four winners he still reportedly ended up making a profit on his bets of some £10 million. He was paid out by all the British bookmakers, but the regulator in Gibraltar, I think, allowed the bookmakers based there not to pay him out, which led to a huge dispute over a long period. I think I am right in saying that the situation was eventually resolved and they paid him out.
That is the only case I can recall where the regulation in one jurisdiction was fundamentally different from that in another and the returns to the punter were materially affected. Nobody who came to the Committee ventured that particular example—I ventured it—so they did not seem to be acutely bothered about it. I am not sure, therefore, what was wrong with the old regime.
People are going to be too concerned about big companies—