Pools Industry Deregulation (Hansard, 14 January 1997)

§ The Minister of State, Home Office (Baroness Blatch)

On 16th August last my honourable friend the Parliamentary Under-Secretary of State (Mr. Kirkhope) issued a consultation paper with proposals for further deregulation of the pools industry. The consultation period ended on 31st October.

He has carefully considered the views expressed in response to our consultation document and is now in a position to report our conclusions and the way forward.

25WA

As a first step, my honourable friend laid yesterday the draft Deregulation (Football Pools) Order to facilitate midweek football pools competitions. The order removes the requirement that football pools competitions retailed through premises must be based on forecasts of matches played on weekends and public holidays. The draft order is now subject to the scrutiny of the Deregulation Committees in both Houses.

My honourable friend also yesterday relaxed the rules on rollover of prizes in pool competitions. When rollover was first introduced in November 1994, rollover in the pools had to follow rollover in the National Lottery. This restriction has now been removed. Rollover will now be subject only to the requirement that the top prize must not be rolled more than three weeks in succession and subject to an overall annual limit of nine rollovers in each series of pool competitions. He has placed a copy of the Direction in the Library.

In addition, my honourable friend is considering proposals to allow the payment of football pools winnings in retail outlets and plans to bring forward a further deregulation order as soon as possible.

He has also reached conclusions on the wider proposals contained in the consultation document. The following proposals were put forward for consideration:

relaxation of the restrictions on the types of sporting events for which pools competitions can be retailed through shops and other premises; and, as a consequence, reduction of the minimum age for participation in all pools competitions from 18 to 16 (16 is already the minimum age for participation in football pools competitions);

removal of the restrictions on the timing of those events;

allow payment of small pools winning in all premises;

remove the requirement for promoters to notify their weekly profits and expenses percentage in advance to the local authority accountant.

Concerns were expressed by the bookmakers, the racing bodies and a range of organisations at the impact of allowing unlimited competitions on horseracing and sporting events to be retailed through premises, particularly if this were to include payment of winnings in public houses. It was considered this could change the pools into a harder form of gambling with frequent opportunities to participate and chase losses.

My honourable friend has taken careful account of these views in deciding the extent to which further deregulation is appropriate.

He has decided that it would not be appropriate to bring forward a measure to allow the retailing of pool competitions on horseraces in premises. In addition, competitions on events other than football should not be allowed in liquor licensed premises or clubs.

Any further proposals to allow retailing of competitions on other sporting events would require further consultation with interested parties.

My honourable friend has discussed the way forward with the pools companies and interested parties and he 26WA is satisfied that this package of measures will help the industry to compete without undermining the regulatory framework on changing the nature of the pools as a soft form of gambling.