Introduced in February 2018, the Gambling Control Bill sought to modernise regulation of the Irish gambling sector, which is primarily governed by the Betting Act 1931 and the Gaming and Lotteries. A modern regulatory framework for gambling in Ireland is urgently required. The Gambling Control Bill of 2013 represents a decent starting point in developing player protection and much needed treatment services and research facilities for Gambling Disorder. The drafting and enactment of the Gambling Control Bill of 2013 appears to have slipped from legislative priority. The sooner this bill.
By Caroline Browne, Partner
A new Bill to regularise Casinos and gambling establishments in Ireland should issue shortly.
The Cabinet, on the 9th July 2013, agreed to the general scheme of the Gambling Control Bill 2013 which should be published by the end of this week or next week. This Bill should seek to tighten the current legislation regarding the location and size of gambling establishments and the type of gambling allowed.
Historically, the issue of casinos and their legalisation has been a controversial one in Ireland. Currently, casino gaming is prohibited by section 4(1) of the Gaming & Lotteries Act 1956, as amended. A result of which casinos cannot be licensed. Nevertheless, you will be aware that there are numerous private members clubs offering, casino gaming facilities. Prosecutions for breaches of section 4(1) by the Gardaí against private clubs for unlawful gaming have been unsuccessful. Private clubs have been relying on certain ambiguities in the present law and have been replying on section 4(3) which states that
“Gaming shall not be unlawful if no stake is hazarded by the players with the promoter or banker other than a charge for the right to take part in the game, provided that:-
(a) only one such charge is made in respect of the day on which the game is played, and
(b) the charge is of the same amount for all players, and
Gambling Control Bill 2013 Ireland Hurling
(c) the promoter derives no personal profit from the promotion of the game”.
Gambling Control Bill 2013 Ireland Genealogy
The result of this section is that private clubs have been operating despite having no licence. The Bill will be looking to address this matter and that only casinos holding a licence under the new law will be permitted to operate.
It is well known that significant reforms to Ireland’s outdated gambling laws have long been promised. The draft scheme of the Gambling Control Bill (the Bill) was originally published in July 2013. When that legislation is enacted, it will modernise Ireland's legislative framework for all types of online and land-based gambling. However, since the initial publication of the scheme, limited progress appears to have been made in getting the legislation on to the statute books.
However, there are some stirrings in the Parliament, which indicate that the government may, however belatedly, be moving ahead with the legislation. Just last month, the Minister of State for Justice, Mr. David Stanton, announced in response to a parliamentary question, his intention to bring, forward the Gambling Control Bill and for government approval and publication later in 2017.
Developments in the Gambling Area
Mr Stanton stated that the Bill is a major and complex undertaking and informed the Dáil that in support of this work, he had commissioned a recent study to identify trends and developments in the gambling arena since 2013, with a focus on technological innovation and international legislation.
The report, entitled 'Developments in the Gambling Area' identifies new and emerging legislation and policy issues, not addressed in the draft scheme of the Bill published in 2013, and which issues will need to be addressed in the new legislation. The author of the study is Dr. Crystal Fulton, from University College Dublin, and the report apparently forms part of a general review process in respect of the regulation of the gambling sector in Ireland.
Interim Legislation in 2017
Pending the enactment into law of the major reform bill, it is anticipated that in the interim, the General Scheme of the Courts and Civil Law (Miscellaneous Provisions) Bill, will provide some clarification and much needed amendments to the Gaming and Lotteries Act 1956. Mr Stanton has indicated that this proposed interim legislation is at an advanced stage and contains a number of measures that will address issues of concern including the minimum age for gambling activities; realistic stake and prize amounts; and that it will provide clear guidance for the conduct of certain gambling activities, which are not currently regulated.
Gambling Control Bill 2013 Ireland 2019
The Tax Srategy Group Review on Betting Duty
The Department of Finance published details on 19 May 2017 of its proposed review of the Irish Betting tax regime. This review will be examined as part of the Tax Strategy Group review process, which analyses the roll out of the betting regime to remote bookmakers and betting exchanges in 2015. It also looks at the likely impact of an increase in the rates of betting duty on:
- Exchequer revenues – including the potential for recovering duty from unlicensed operators (or putting them out of business); and
- The bookmaking industry including the remote sector.
The Department of Finance is seeking feedback from operators in relation to their views on the following specific aspects of the regime:
- The inclusion of the remote sector in the betting regime under the Betting (Amendment) Act 2015;
- Whether the existing model of turnover tax, with a different approach to betting exchanges, is the most appropriate tax model for the industry at this time;
- What is the appropriate level of betting tax (and the equivalent tax on betting exchange commissions); and
- What would be the likely impact of a move from taxing the bookmaker, to taxing the punter i.e. either a percentage tax on all bets placed, paid by the punter, or a (higher) percentage payable on winnings earned by the punter.
The deadline for responding to the review is 19 June 2017 and the Department of Finance has confirmed that they are happy to meet with operators as required.
Gambling Control Bill 2013 Ireland Bank Holidays
Submissions should be forwarded to betting@finance.gov.ie. It should be noted that all submissions made to the Department of Finance may be subject to the Freedom of Information Act 2014.