Game-changing rules for gambling in Ireland

In this briefing, we look at the new rules being introduced following the passing of the Gambling Regulation Bill 2022 through both Houses of the Oireachtas.

Ireland is finally following in the footsteps of other jurisdictions by introducing a streamlined licensing regime for in-person and online gambling and imposing restrictions on the advertisement of gambling activities along with other measures aimed at protecting people from gambling harm.

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

The Bill aims to provide a modern and robust regulatory and licensing framework for the Irish gambling sector to reflect the growth of online gambling and related advertising. Businesses in the gambling sector and advertisers of gambling activities will need to take steps to ensure they are prepared to comply with the new rules once they are introduced.

The new rules will not take effect immediately. Once the Bill is signed into law by the President, the Act will not come into operation until a Ministerial order is made. The current regulatory framework governing betting, gaming and lotteries will remain in place until the relevant provisions of the new Act are commenced and the old legislation is repealed.

Establishment of the GRAI

One of the fundamental changes of the Bill is the establishment of an independent authority responsible for regulating gambling laws in Ireland. The Gambling Regulatory Authority of Ireland (GRAI) will replace the range of State bodies currently involved in various aspects of licensing and regulation. The GRAI will have enforcement powers to enable it to take action where licensees fail to comply with obligations.

Licences

The new licensing regime is a welcome development to replace the fragmented and outdated licensing regime currently in place. It will bring clarity to businesses who provide online gambling services to Irish customers. The new law will introduce three different licences which, 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 will be prohibited from advertising gambling services with a broadcaster, 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.

In addition, gambling advertising on audiovisual on-demand media services will be prohibited unless a person has an account with the relevant media service provider.

The GRAI will have the power to make regulations in relation to the content, times, duration and frequency of advertising of gambling. The GRAI will have the power to require certain information to be included in advertisements, including for example, a warning of the risk of excessive or compulsive gambling and the consequences of such gambling.

Specific restrictions have been introduced to protect children including prohibitions on advertisement, sponsorship and merchandising directed towards children.

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 will introduce significant fines for breaches. Financial penalties for breaches may be up to EUR20,000,000 or 10% of the licensee’s turnover in the previous year, whichever is greater. Operating without a licence may result in a fine or imprisonment for up to 8 years in prison, or both.

Conclusion

The new regime will bring much needed clarity for Irish and international businesses in the gambling sector, particularly in relation to advertising and inducements, which have been key areas addressed in other jurisdictions to help protect vulnerable persons and prevent problem gambling.

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