MPs 'flabbergasted' as gambling boss denies industry causes social harm

Grainne Hurst repeatedly said she disagreed that gambling is a cause of social ills

MPs have raised concerns about evidence given to Parliament by the chief executive of the gambling industry’s trade body.

Grainne Hurst, who leads the Betting and Gaming Council, appeared before the Treasury Select Committee as the chancellor faces calls to increase taxes on betting firms in next month’s Budget.

On four occasions, Hurst denied that gambling creates “social harm” – while acknowledging a minority of people do suffer harm through gambling.

“I think there are people who will have problems with their gambling, but that is 0.4% of the population,” she told MPs. “But I don’t think it’s right to categorise the gambling industry as creating social harms.”

Hurst also argued that online gambling was no more addictive than betting on horse racing – a claim campaigners strongly dispute.

Some MPs appeared visibly frustrated by her evidence.

In a statement, Chair of the Treasury Select Committee, Dame Meg Hillier MP, said: “While I accept parts of the gambling industry make an economic and cultural contribution to the UK, I am frankly flabbergasted that representatives from the betting sector could not accept that certain forms of gambling, such as highly addictive online casino games, cause social harm for some people. I don’t believe that is a defensible position.”

The committee also heard from Stewart Kenny, co-founder of Paddy Power, who is now retired from the industry.

He criticised bookmakers for using free spins to encourage sports bettors to switch to highly addictive online slot machines, where profit margins are greater.

“It’s like going into a bar for a first drink and having a shandy,” he said. “Then the barman says: ‘Why not have a triple-strength brandy on the house?’”

The Institute for Public Policy Research (IPPR) estimates that the government could raise an extra £3.2 billion a year by increasing taxes on online gambling, physical slot machines and sports betting.

Former prime minister Gordon Brown has backed the proposal, saying the money should be used to lift the cap on benefits for families with more than two children.

However, analysis commissioned by the Betting and Gaming Council suggests the IPPR’s reforms would push gamblers towards unregulated “black market” operators and could result in 40,000 job losses in the UK.

A Betting and Gaming Council spokesperson said: “The BGC takes the issue of gambling related harm incredibly seriously. Our CEO, Grainne Hurst, was clear throughout the session that the industry recognises gambling can cause harm and has a role to play in mitigating it. The BGC’s priority remains raising standards, promoting safer gambling, and protecting consumers.”