knowledge 1 November 2024

The Legal View on the New Irish Gambling Regulations

On 23 October, the Gambling Regulation Bill was signed into law, almost two years after the bill was initially published, three years after it was announced by the current government and 17 years of planning and which involved the work of six successive ministers. It is not an overstatement to say that the bill represents the most significant form of gambling legislation in the history of the Irish state.

It is widely acknowledged and accepted that the current regulatory framework in Ireland is outdated, in need of reform and is insufficient to manage the complexities of modern gambling. The requirement to reform the existing regime is coupled with and likely overshadowed by the need to tackle the growing issue of problem gambling in Ireland. Recent studies have shown that one in 30 adults in Ireland suffer from problem gambling. The bill seeks to strike a balance between protecting punters and the young from the harms that gambling can give rise to and providing a framework for operators to provide their services within. However, with any piece of legislation that is framed as a public health measure one has to expect that it contains measures which are not universally welcomed by operators.

Key measures:

• The bill establishes the GRAI which will be responsible for the regulation and supervision of all forms of gambling in the state. This is certainly a positive development as currently; the regulation of gambling is rather disjointed and falls between a number of governmental departments.
• The bill introduces a new licensing regime with three categories of licenses being available, namely B2C licences, B2B licences and charitable/philanthropic licences. This therefore creates a framework for operators to obtain licences to legally provide many forms of gambling products (for example, gaming) for which licences cannot currently be obtained. One important point worth noting is that the categories of service providers who will be required to apply for a B2B licence is broad and include those providing odds to licensees, online hosting services, indispensable support and maintenance services, risk and fraud management services, services relating to the protection and safeguarding participants and the installation, maintenance or upgrading of software. Up until now, B2B service providers were not required to obtain a licence when operating in Ireland.
• Perhaps the most scrutinised and restrictive provisions in the Bill are those relating to advertising, which have been subject to intense criticism from various industry stakeholders. A watershed restriction will apply to gambling advertisements between the hours of 5.30am and 9pm. Although certain exemptions are available, there has been extensive criticism from both operators and broadcasters on the watershed who claim that it could result in making broadcasting horseracing in Ireland unviable. In addition to the watershed, gambling advertisements will be prohibited on certain on-demand and social media services, unless the recipient has an account with the platform concerned. The GRAI may also introduce additional restrictions on advertising, for example, prohibiting the inclusion of certain matters in advertisements, prescribing the times, places and events at which advertisements may be shown as well as limiting the frequency and duration of advertisements.
• The bill also prohibits “targeted” inducements (ie those aimed at individuals on the basis of gender, age, ethnicity or at supporters of a specific sports team). However, inducements aimed at the general public will be permitted under the new regime. Significantly, the Bill imposes maximum stake (€10) and maximum winnings limits(€3,000) on casino games, with similar restrictions applied to lotteries (excluding the National Lottery in Ireland) and bingo. These restrictions have been widely criticised by operators that claim it will make certain games unviable and drive players to unlicensed black market operators. For example, one would question how a game offering a progressive jackpot could adhere to these restrictions. One also simply needs to look at the changes made by the Greek authorities a number of years ago, which increased winnings limits from €70,000 to €140,000 (46x higher than the limits in Ireland).
• In welcome news, the bill creates a Social Impact Fund will be created to fundresearch, and initiatives aimed at reducing or eliminating problematic gambling. ANational Self Exclusion Register will also be established which will prohibit operatorsfrom accepting bets from customers who have opted to self-exclude from onlineservices. Credit card gambling will also be prohibited.

In terms of next steps, although the act has been signed into law, it is subject to a commencement order which means it remains unclear as to when the new regime will formally take effect. 

One would imagine the immediate focus will be ensuring the GRAI is operational as soon as possible. The CEO designate has already been appointed with 11 other posts already sanctioned and filled. Directors are in situ in the areas of licensing, corporate services and ICT. Transitional provisions have been included which provide that existing licences will remain in force until expiry and any current applications which are submitted prior to the enactment of the Bill and the revocation of the current gambling laws will also remain valid.

As at the date of writing, it is reasonable to assume that the existing licencing regime will remain valid for the renewal processes for existing licences in 2025. If that is the case, the current regulatory regime will continue to apply to those licences. However, it is important to point out that any renewals of licences under the existing regime will be valid for one year (rather than two years, as is currently the case).

The Irish government clearly had an extremely difficult and unenviable task in striking a balance between protecting vulnerable people and preserving an industry that is estimated to be worth between €6bn and €8bn annually. While some of the measures are undoubtedly welcome, it remains to be seen what commercial impact the restrictions on advertising and gaming limits, in particular, will have on operators.

Reproduced from EGR Global with the permission of the publishers. EGR Global is the world's leading online gambling industry news source. 

For further information, visit the EGR Global website here.

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