Tory MP Lobbied Ministers for Casino
Author:
Jacob McKenzie
It has been revealed that Conservative MP Philip Davies has successfully lobbied on behalf of Mayfair casino Les Ambassadeurs, influencing the outcome of the long-awaited gambling review white paper. Davies was treated to hospitality at the casino before writing to the Culture Secretary, requesting credit to be offered to overseas visitors at high-end casinos.
The MP was treated to a tour of Les Ambassadeurs casino in Mayfair as well as a meal.
?Javon Swaby/Pexels
Free Hospitality
A Tory MP has been discovered to have lobbied the government on behalf of a prominent London casino. After writing to the Culture Secretary on behalf of the casino, a measure that has been included in the recently published gambling white paper was changed in the casino’s favor.
MP Philip Davies was entertained at Les Ambassadeurs luxury casino in Mayfair, central London. In February he wrote to Culture Secretary Lucy Frazer requesting changes that would enable casinos to offer credit lines to gamblers, including lucrative foreign visitors, playing the tables at Les Ambassadeurs.
The MP’s request was accepted, and was later included in the government’s newly published gambling white paper. The policy paper is the result of a review of the 2005 Gambling Act that was launched in December 2020. The resulting reforms aim to bring the UK’s gambling laws in line with the digital age, improve consumer protections and combat gambling harms.
In his letter to the Culture Secretary, Davies at one point referred to the casino’s income as “our” revenue. This has raised concerns that the MP was reproducing content provided to him by the casino. The Guardian probed Davies on the matter, but did not receive an answer.
Davies did not provide a statement on the record, but told journalists that he had written to Frazer after agreeing that Les Ambassadeurs should be allowed to offer customers credit. The casino conceded that it had briefed the MP on the credit issue, stating that they provided him with information to help inform his letter.
It is understood that Philips did not receive any remuneration from Les Ambassadeurs, and none is listed in his entry on the register of interests. He was given a tour of the casino on January 25th and was treated to a meal at the venue, which offers fine dining options. MPs are not obliged to disclose hospitality below the value of ￡300.
Credit for Overseas Gamblers
The letter sent by the MP to the Culture Secretary was revealed following a freedom of information request from the Good Law Project. Jo Maugham, who founded the organization in 2017, is one of the country’s leading barristers. He questioned why the interests of the gambling industry have been put ahead of the public interest, undermining proper safeguards.
The government’s new gambling reforms are set to tighten regulations on online gambling. However, restrictions for land-based casinos are to be relaxed. In particular, the white paper outlines plans to permit land-based casinos to offer credit to high net worth international visitors. At present, the 2005 Gambling Act prohibits land-based casinos and bingo halls from offering credit.
Around 90% of revenue at a small group of high-end casinos comes from customers based overseas. Before the pandemic, 60% over overall business was conducted through cheques. However, banks have since started removing their overseas cheque processing facilities. Operators have been in discussion with the government since the banking sector first suggested the withdrawal of cheques in 2017, although no feasible alternatives have been found.
The clientele of high net worth overseas customers is typically used to gambling in several jurisdictions. Other jurisdictions offer short-term credit arrangements, circumventing the cost of currency exchange each time a customer wants to stake additional funds. The government has proposed allowing such credit in land-based casinos, but only to customers not resident in the UK.
According to the plans as outlined in the white paper, the government will communicate with the Gambling Commission to institute a procedure of checks before credit can be issued. It predicts that the measure will support the post-pandemic recovery of high-end casinos, which are in competition with jurisdictions including Monaco, Singapore and Macau.
Industry Connections
Philip Davies MP, who has represented his constituency in Shipley, West Yorkshire since the 2005 general election, is no stranger to controversy. He is recognized as the most rebellious serving Conservative MP, and has voted against the Tory whip more than 250 times. The MP has gained notoriety for filibustering parliamentary bills not supported by the government, killing off legislation that he doesn’t like.
Davies has long had ties with gambling industry, working at two bookmakers before his election as an MP. In 2013, he was investigated by the Parliamentary Commissioner for Standards for failing to fully declare benefits received from companies linked to gambling industry. In 2016 he was investigated after claims of favorable treatment from Ladbrokes, but was cleared of any wrongdoing.
In 2018, former Sports Minister Tracey Crouch resigned after Davies secured a delay to curbs on fixed odds betting terminals. The move undermined her position, as she had campaigned for legislation to come into force in April 2019. It was announced that the legislation would be postponed until October of that year, although the government later backtracked on this and maximum stakes for FOBTs were capped at ￡2 in April.
He is one of the largest beneficiaries of money spent by the gambling sector on politicians. Davies has received up to ￡14,713.60 in hospitality from betting firms during the past two years, including trips to Ascot racecourse and cricket Test matches. The Conservative MP has earned over ￡57,000 in his capacity as an advisor for leading operator Entain.
Davies recently became co-chair of the all-party parliamentary group on betting and gaming after fellow minister Scott Benton was suspended pending an investigation. Benton was caught in a sting by undercover reporters, in which he offered to lobby for the gambling industry for up to ￡4,000 a month.
