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Inter-Departmental Working Group on Future Licensing and Regulation Of Report to Government Inter-Departmental Working Group on Future Licensing and Regulation of Gambling March, 2019 TABLE OF CONTENTS I. FOREWORD BY DAVID STANTON, T.D., MINISTER OF pg. 3 STATE II. EXECUTIVE SUMMARY pg. 5 CHAPTER 1. THE CURRENT LEGISLATIVE FRAMEWORK FOR FUTURE LICENSING AND REGULATION OF GAMBLING pg. 10 ACTIVITIES IN IRELAND CHAPTER 2. FUTURE APPROACH TO LICENSING OF GAMBLING pg. 18 ACTIVITIES CHAPTER 3. FUTURE REGULATION OF GAMBLING ACVTIVITIES pg. 34 CHAPTER 4. ADVERTISING, SPONSORSHIP AND PROMOTION OF pg. 49 GAMBLING ACTIVITIES CHAPTER 5. COMBATTING ATTEMPTED MONEY LAUNDERING pg. 59 THROUGH GAMBLING ACTIVITIES CHAPTER 6. COMBATTING BETTING RELATED MANIPULATION pg. 66 OF SPORTING EVENTS (MATCH FIXING) CHAPTER 7. PROTECTION OF THE CONSUMER OF GAMBLING pg. 78 ACTIVITIES CHAPTER 8. ADDRESSING THE SOCIAL IMPACT OF GAMBLING pg. 90 AND PROTECTION OF VULNERABLE PERSONS CHAPTER 9. LICENSING FEES, BETTING DUTIES AND TAXATION pg. 98 OF GAMBLING ACTIVITIES CHAPTER 10. WORKING GROUP RECOMMENDATIONS pg. 106 PAGE 1 Appendices I. MEMBERSHIP OF THE INTER-DEPARTMENTAL WORKING pg. 118 GROUP. II. GLOSSARY OF TERMS pg. 120 III. REPORTS FROM DEPARTMENTS ON THEIR CURRENT pg. 122 ACTIVITIES IN THE AREA OF GAMBLING IV. LICENCE FEES APPLYING TO LICENSED GAMBLING pg. 142 ACTIVITIES IN THE UK PAGE 2 I. Foreword by David Stanton, T.D., Minister of State Devising and implementing a modern licensing and regulatory regime for the Irish gambling industry presents this State with a significant challenge. The industry is large, growing and evolving from a largely land-based manifestation to an on-line one. However, we are currently applying a mid-20th century approach to gambling activities that have changed significantly in nature, are increasingly digital in format, and conducted on-line. As the gambling industry changes, and indeed as the demographics and motivations of its customers change, so must the State’s licensing and regulatory approach. My guiding principle since I assumed special responsibility in this area is that we must, in a transparent and proportionate manner, license and regulate gambling pursuits participated in by many citizens throughout Ireland. In doing that, we must ensure the best possible enforcement of the law and compliance with licensing conditions, increase revenue to the Exchequer, improve services to the consumer and support effective protection for those who may be vulnerable to addiction. By way of a Decision of 10 January 2018, the Government tasked me with reviewing all of the provisions of the General Scheme of the Gambling Control Bill 2013, through the chairing of an Inter-Departmental Working Group on the Future Licensing and Regulation of Gambling. The Working Group set out to determine whether the provisions of the 2013 General Scheme remained fit for purpose in light of developments in the area of gambling, both domestic and international. The Government also agreed on 10 January 2018, to the concept of the statutory establishment of an independent regulatory authority for the gambling industry. This represents a significant departure from the proposal set out in the 2013 General Scheme, of an Office for Gambling Control operating within the Department of Justice and Equality. I am pleased to present this Report to the Government and to inform them of the deliberations of the Working Group. The Report recommends significant reform of our licensing and regulatory approach to gambling. It identifies new and emerging issues not represented in the 2013 General Scheme and, which must be addressed in a revised Gambling Control Bill. PAGE 3 The Working Group is firmly of the view that without a new independent regulatory authority of sufficient scale, the comprehensive reform required will not be possible. Effective modern licensing, regulation and monitoring of the gambling industry will come at a cost. The Working Group concludes nevertheless that such an authority can in time be substantially self-financing, through income from licence and other fees charged to gambling operators. Incremental change is not a viable approach to the reform of Irish gambling licensing and regulation. Effective reform requires fundamental and significant change. This will take some time to develop. It is essential that sufficient resources be committed to support the reform. The effective oversight of an industry with an estimated annual value of between €6 – 8 billion requires nothing less than such an effort. In addition to this Report, I also hope to publish the Gaming and Lotteries (Amendment) Bill in the course of this current Oireachtas session. This Bill will contain a number of interim measures, which can ultimately be reflected in the future comprehensive reform of the licensing and regulation of gambling. I wish to acknowledge the valuable work of those officials on the Inter-Departmental Working Group and extend thanks for their contributions, which have informed the contents of this Report. Finally, I would like to thank officials from the Gambling Policy Division and my own staff in the Department of Justice and Equality for their hard work during this process. David Stanton, T.D. Minister of State at the Department of Justice and Equality March, 2019 PAGE 4 II Executive Summary 1. General Scheme of Gambling Control Bill 2013 1.1. The Government on 9 July, 2013 approved the drafting of the Gambling Control Bill 2013, along the lines of the General Scheme, which would replace all current gaming and betting legislation. It would introduce an extensive new licensing process and a regulatory body (the Office for Gambling Control Ireland) to enforce compliance. The General Scheme was referred to the Office of the Parliamentary Counsel in July 2013, but drafting has not proceeded. 2. Government Decision of 10 January 2018 2.1. The Government decided on 10 January, 2018 to proceed with the drafting of the Gambling Control Bill, based on the General Scheme approved in 2013, subject to necessary updating, further consideration of all relevant matters that have arisen since and consultations with Departments, the Office of the Attorney General and the Office of Parliamentary Counsel. 2.2. Of particular significance was that the Government approved the concept proposed by the Minister and Minister of State for Justice and Equality to establish an independent statutory regulatory authority for gambling. 3. The Inter-Departmental Working Group on the Future Licensing and Regulation of Gambling 3.1. The Government approved the establishment of a Working Group, chaired by the Minister of State at the Department of Justice and Equality. The Group comprised all Departments with responsibility or involvement in gambling activities, the Office of the Attorney General and An Garda Siochana to review the provisions of the 2013 General Scheme and assist in the development of the future licensing and regulatory approach for the gambling industry. The Working Group met formally on six occasions between February 2018 and January 2019. PAGE 5 4. Summary of Working Group’s discussions 4.1. The main issues discussed by the Group, having regard to its mandate to examine the provisions of the 2013 Scheme1 and to make recommendations for an improved Gambling Control Bill having taking into account relevant developments since, are summarised in the following paragraphs. For the purposes of this Report, the term “gambling” is construed as encompassing all gaming, lottery and betting activities currently available in the State. Licensing of gambling activities 4.2. The Group recommended that the 2013 Scheme approach to the licensing of gambling activities, that proposed 43 categories, be significantly rationalised. The Group considered that licensing should reflect the following broad categories: Betting Gaming and lotteries Gaming machines Bingo Casinos On-line gambling. However, the Group recommended that further consideration be given to a more horizontal approach to licensing with the potential for single gambling licences across arrange of activities, being issued for Business to Business (B2B) operators and Business to Customer (B2C) (gaming and betting) operators. The Group recommended that applicants for gambling licences should be intensively investigated by the proposed gambling regulatory authority to ensure their suitability and propriety. In particular, the ultimate beneficial ownership of any company or entity applying for a gambling licence must be determined. All licences issued should have appropriate terms and conditions applied, particularly concerning protection of consumers and vulnerable persons and for combatting fraud and money laundering. A gambling regulatory authority 4.3. The Group supported the establishment of an independent gambling regulatory authority to be responsible for all licensing and regulation of all aspects of the gambling 1 http://www.justice.ie/en/JELR/Gambling%20Control%20Bill%20- General%20Scheme%20July%202013.pdf/Files/Gambling%20Control%20Bill%20- General%20Scheme%20July%202013.pdf PAGE 6 industry. It considered the possible governance arrangements, the functional organisation and the possible resources required of such an authority and suggested a potential organisational model. The Group believed that the example of the UK Gambling Commission could serve as a critical reference point for the development of an Irish regulatory authority given the significant commonality of market features and wide range of gambling activities offered and integration of the main operators. The regulatory
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