Game-changing rules for gambling in Ireland

Ireland is getting its act together and joining many other jurisdictions in putting in place a streamlined licensing regime for in-person and gambling online services and setting restrictions on the advertisement of gambling activities and some other measures aimed at protecting people from gambling harm.

What will the new rules mean for gambling businesses operating in the Irish market?

This Bill seeks to offer a modern and strong regulatory and licensing framework for the Irish gambling sector, reflecting growth in online gambling and its associated advertising. The businesses in the gambling sector and advertisers for gambling activities will have to take steps to get compliant to new norms, when introduced.

The new rules will not start to be sustained until a Bill to be signed into law by the President takes effect. Until a Ministerial order does come into effect, the current regulatory framework governing betting, gaming and lotteries will apply. Until the relevant provisions of the new Act come into operation and the old legislation is repealed, the current regulatory framework concerning betting, gaming and lotteries shall remain in force.

Establishment of the GRAI

The Bill establishes an independent authority responsible for regulating gambling laws in Ireland. The Gambling Regulatory Authority of Ireland will replace a number of State bodies currently involved in various aspects of licensing and regulation. The GRAI will have enforcement powers enabling it to take action against licensees who fail to comply with obligations.

Licences

As such, a new licensing regime is a welcome development that will replace the currently fragmented and all-but-outdated regime. It will bring clarity to businesses providing online gambling services to Irish customers. The new law will create three different licenses, as follows:

1. Business to Consumer Licence
   This licence will be required for in-person and online gaming, betting and lotteries.
2. Business to Business Licence
   This will be for persons selling or supplying gambling products and "gambling related services" to Irish licensees or persons outside Ireland (e.g. providing odds, software and machines). It is worth noting the breath of the definition of "gambling-related services", which includes support and maintenance, risk and fraud management services, services to implement measures to protect and safeguard players and facilities for the holding and managing of customer funds. This list can also be expanded by the GRAI.
3. Licence for Charitable and Philanthropic purposes
   This will authorise the carrying out of games and lotteries in a fundraising context for charities.

Advertising

Under the new regime, licensees shall be prohibited from advertising gambling services with a broadcaster, or an audio-visual on-demand media service, or an on-demand sound service between the hours of 5:30 a.m. and 9:00 p.m.

There won't be any gambling commercials on audiovisual on-demand media in the future unless someone has an account with that specific media service provider.

The GRAI shall have the authority to make regulations regarding the content, times, duration and frequency of gambling advertising. The GRAI would also have the authority to require certain information to appear in advertisements, including, for example, warnings regarding the dangers of excessive or compulsive gambling and the consequences that might flow therefrom.

To protect children, specific restrictions have been placed on advertising, sponsorship and merchandising. Specifically, they have been prohibited from doing so.

Other Key Provisions

Some of the other major takeaways from the Bill can be summarised as follows:

• A National Gambling Exclusion Register will be introduced, allowing individuals with gambling problems to voluntarily add their names to a list of people excluded from access to all gambling services. It remains to be seen how this will operate in practice.
• A social impact fund will be established and managed by the GRAI aimed at tackling the effects of problem gambling and will be funded by holders of licences (other than charitable licences)
• Inducements, such as free bets and special offers, may still be offered to the general public but may not be targeted at specific individuals or groups.
• Licence holders must include a feature allowing customers to place monetary and time limits on their accounts.
• Remote (online) betting providers will need to meet strict requirements around account opening and management, the provision of written terms and conditions as well as prominent display of information on adverse effects of betting to participants.
• Licensees are not permitted to accept payment for a relevant gambling activity by credit card.
• The GRAI will be able to apply to Court for orders to direct persons to cease prohibited gambling activities. It can also seek Court orders to direct internet service providers to block access to the prohibited gambling activity concerned.

Penalties

The new law imposes very serious penalties for violations. Such financial penalties for breaches could reach EUR20,000,000 or 10% of the turnover of the licensee for the year prior, depending on which is higher. The absence of the necessary licenses may lead to a fine and/or a sentence of imprisonment not exceeding eight years.

Conclusion

The new regime will bring clarity to Irish and international businesses operating in the gambling sector, especially in terms of advertising and inducements, which have been priority issues in other jurisdictions designed to protect vulnerable persons and prevent problem gambling.

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