28 January 2025
By Roger Kennedy
roger@TheCork.ie
Entertainment / Opinion
An examination of the critical uncertainties that remain over Ireland’s gambling law, including the potential for industry resistance and the structure of the regulatory body.
Dáil Éireann made a historic move on October 16 by enacting a landmark gambling law, marking Ireland’s first regulation reform since 1956. This significant step is set to reshape the gaming landscape in Ireland.
The Gaming Regulation Bill, introduced in December 2022, intends to modernise gaming. It creates a regulator, a countrywide self-exclusion plan, and tougher limitations on advertising, licensing, and where gaming machines may be located (not near schools).
The Gaming Regulatory Authority of Ireland (GRAI) requires all operators to reapply for a license to continue offering gaming services. As part of the new player protection rules, licensees must limit gambling advertising between 5:30 a.m. and 9 p.m.
Is it time to adapt?
Before the enactment of the new laws, Ireland’s gambling law were very similar to those of the UK. This jurisdiction has not experienced reform or regulation in a contemporary context for an extended period.
The gaming law in Ireland will elevate the country’s many online casino operators to the standards of other developed countries. Numerous parties have expressed concerns over multiple facets of the Act, with one notable criticism being that the measure was drafted with little input or engagement from the gaming industry.
The sector has concerns
Stakeholders have shown dissatisfaction with the law. Flutter, the international entity that sprang from the Irish success story Paddy Power, is apprehensive about implementing stake and win limitations for online gaming and restrictions on gambling advertisements. However, the operator says it overall is welcoming of regulation.
The horse racing industry is also apprehensive about new advertising rules that would prohibit gambling advertisements and promotion on television and radio during daytime hours. This will significantly affect Racecourse Media Group’s RacingTV channel. The organisation said the prohibition would make broadcasting in Ireland “economically unfeasible.” It has said it lacks the resources to modify its offerings to comply with these new regulations.
The General Election Accelerated the Bill
The bill went through all 11 phases in 17 months from its late 2022 introduction to the Dáil Éireann. After four stages of amendments and discussion, it headed to the Senate in mid-May for five more.
Three weeks in October saw Ireland’s gaming bill’s last reading, changes on 16 October, and parliament’s approval. Pressure to adopt the law before Ireland’s March 2025 general election is believed to be to blame.
Simon Harris – the then Taoiseach – called a 29th November General election. Harris’ four-and-a-half-year Fine Gael, Green Party, and Fianna Fail coalition ended on 8 November when the Dáil was dissolved.
Timeline for Implementation
During the concluding phases of the bill’s passage, lead deputy James Browne expressed his anticipation for the law to be passed within the year. “That would undoubtedly be the objective, although we can never be certain about such matters,” he said.
While there is a clear political impetus for swift rule enforcement, critics anticipate challenges in establishing the regulatory body, particularly in recruiting complete personnel. This awareness of potential challenges is crucial for a comprehensive understanding of the situation.
What is the situation with taxation?
A current area of ambiguity is the prospective tax framework for the industry. The measure pertains to VAT, to which gambling will remain subject. Tax rates are typically established under the Finance Bill 2024, which completed its final parliamentary stages on 6 November. The legislation included many revised definitions regarding betting and online betting duty; nevertheless, the financial obligations for operators remained the same. The current remote betting duty is a 2% turnover tax.
Ensuring Accountability for Licensees
Despite the criticism, proponents of the new gaming regulations argue that they bring several benefits, including setting specific criteria for operators to compete with their more established counterparts. The regulations also introduce penalties, with non-compliant licensees facing fines or even license revocation, thereby ensuring accountability in the industry.
It also empowers the regulator to pursue court judgments prohibiting advertising by unlicensed and illicit businesses.
What lessons may Ireland derive from other nations?
Politicians promptly commended Browne for enacting what they considered a convoluted but essential legislation. The manner in which the sector will be integrated into the implementation of the new legislation is still to be determined; nonetheless, the gaming business has shown its capacity for resilience among evolving regulatory frameworks.
Ireland can now learn from the errors of more established markets and laws, especially in light of the rise of illicit markets, allowing it to tackle the issue proactively. Gambling taxes and licensing costs will significantly influence market success, making it essential for the government and regulator to consult the sector when determining these elements. Neighbouring European markets have been adversely affected by tax rises, which, by driving away operators, may eventually foster an uninviting atmosphere for gaming.