Finally… a new era for gambling regulation in Ireland

Recap

The Bill establishes a comprehensive legal, regulatory, and licensing framework for all forms of gambling in Ireland (with the exception of the National Lottery). It is a much-needed reform measure which will transform the regulation of gambling in Ireland in a number of ways. For those seeking the best casino online, this legislation promises to provide a more secure and regulated environment for operators and players alike.

Going forward, all gambling operators offering any type of gambling activities to Irish customers – including gaming, betting, and lotteries – will require an Irish B2C licence, with specific forms of licences for charitable and non-profit organisations such as sports clubs which have traditionally relied on such activities for fundraising. There will also be new B2B licensing requirements for those involved in offering “gambling related services” to Irish licensees. A newly established independent regulator, the Gambling Regulatory Authority of Ireland (the GRAI), will be responsible for implementing the new licensing regime, monitoring compliance, and taking enforcement action where necessary. It will have robust powers to ensure the requirements of the legislation are adhered to and will have a range of enforcement tools at its disposal (including the ability to apply fines of up to €20,000,000 or 10% of turnover if greater), where contraventions occur.

For further details on the scope and detail of the new regime, see our previous briefings here.

Last minute changes

Well over a decade in the making, the Bill was heavily debated during its passage through parliament, with some heated exchanges on key issues including advertising and inducements in recent weeks. Opposition politicians proposed extensive amendments to the Bill, although very few of these were accepted, with the final changes being largely clarificatory.

Some highlights to note are outlined below:

• Advertising: An issue of focus since the Bill was published, Minister Browne resisted calls from some opposition members for an outright ban on advertising, notwithstanding that the Bill itself contains material restrictions on the scope of what will be permitted. The Minister, who has been responsible for driving the reforms, has consistently asserted that gambling is a lawful and legitimate activity, emphasising that the regulatory approach adopted by the Bill is to set a series of parameters.

At the same time, the GRAI is being empowered to regulate advertising on an ongoing and evolving basis, through further regulations, keeping pace with changes in societal attitudes and needs. Ultimately, the only material changes were to provide ‘carve outs’ allowing for advertising by holders of ‘charitable licences’. The Minister held firm on the introduction of a ban on advertising between the hours of 5:30am and 9:00pm, despite significant lobbying from the horseracing sector in particular.

• Inducements: The ability of gambling operators to provide promotions has also been a key focus of the Bill since it was published. This first draft of the legislation included a complete ban on the offering of inducements, but material amendments were made to limit this to a prohibition on offering them to specific persons or groups of persons – but not to the general public.

While some last-minute changes were made, the final position reflects the Government’s determination to prevent individualised incentives, aimed at encouraging people to gamble, but permitting promotional offers that are open to everyone. This is subject to the ability of the Minister to make regulations restricting certain types of inducements, but only where there is a public policy rationale for doing so.

• Narrowing of the definition of ‘gambling related service’ regarding customer funds: Another feature of the Bill is the wide scope of businesses which may be subject to B2B licensing, because of the broad definition of “gambling related service”. The settled text still potentially includes a wide range of businesses, but the reference to “facilities for the holding and managing of customer funds” has been removed. This will be welcomed by financial services providers who could otherwise have potentially been caught by the B2B licensing provisions through servicing gambling operators.

What’s next?

The passing of the Bill represents a significant landmark in gambling regulation in Ireland. While operators should take steps now in terms of upping their level of readiness for the new regulatory regime, a number of stages must still occur before the Bill becomes operational.

1. Signature and commencement: The Bill will now be passed to the President for signature. This will formalise the enactment of the legislation but the timing of when the legislation will take effect is a matter for the Minister for Justice who must ‘commence’ the Act once it is signed. While a commencement date has not yet been indicated, this is likely to be influenced by the GRAI’s operational readiness (and potentially the upcoming general election, although this is unlikely to cause a material delay).

2. Establishment of new regulator: In parallel with the legislative process, the GRAI has been working hard behind the scenes to get ready to take on its regulatory functions as soon as possible after the passing of the legislation. However, it has been mooted that the GRAI may need some months yet before it is ready to take up its role.

CEO designate, Anne Marie Caulfield, who was appointed some time ago, has been building up staffing and resources, and more recently it is understood that the nascent regulator has been focused on developing licensing procedures, regulatory codes, and industry guidelines. It has also been working with the Department of Justice’s Anti-Money Laundering Compliance Unit in preparation for taking over responsibility for this function from the DoJ.

3. Transitional arrangements: Final amendments to the Bill have provided some welcome clarity for existing licence holders. We now know that licences will remain in force until expiry, which in the case of remote bookmakers and remote betting intermediaries, is 30 June. An interesting detail in the final amendments to the legislation, is that the two-year period for these betting licences (and for bookmakers licences) issued under the existing regime under the Betting Act has been reduced to 1 year.