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Irish Regulatory Reform Gathers PaceJoe Kelly, John Cahir And Katie ByrneJoe KellyJohn CahirKatie ByrneIntroductionOn 15 July 2013, the Irish Minister for Justicepublished the “General Scheme of the GamblingControl Bill”, a 90-page blueprint of a proposed newregulatory framework for gambling in Ireland.The publication of the Scheme signals a firmintention on the part of the Irish government tointroduce a comprehensive licensing regime forIreland’s gambling sector, and to modernise theexisting outdated legislation.Gambling is currently regulated in Ireland by a1931 Betting Act and a 1956 Gaming and LotteriesAct, neither of which is equipped for the moderncommunications environment. The result is thatseveral aspects of Irish gambling law are “grey”,particularly in relation to remote gambling, which isnot specifically addressed by either piece of legislation.While the gaps in the 1931 and 1956 Act, anda dearth of enforcement on the part of the Irishauthorities, have allowed land-based and onlineoperators to establish gambling businesses in Irelandwithout being licensed to do so, the absence of legalcertainty is unsatisfactory, and it has deterred manyoperators from considering locating in Ireland or thetargeting the Irish market.Legislative reform has been on the agenda forsome time now. In 2006, the “Casino RegulationCommittee” put forward 32 recommendations for theregulation of gambling in Ireland. That report wasnot acted on for a few years, but following a publicconsultation which concluded in September 2009,the Department of Justice set up a “Casino GamingControl Unit” to grasp the nettle of gambling lawreform. This Unit produced an “options” paper, settingout specific proposals in relation to the regulationof gambling in Ireland, which was published inDecember 2010.This article synopsises the key features of theScheme of the Gambling Control Bill. It is howeverimportant to bear in mind that the Scheme is a draftdocument, which is likely to evolve substantially asthe legislative process unfolds.Scope of new gamblingregulatory regimeIn general terms, most forms of gambling will, subjectto restrictions, be permitted under the proposedlegislation (including casino gaming, betting, lotteries,bingo, gaming and amusement arcades), but allgambling operators (both land-based and remote)supplying gambling services to Irish customers will berequired to obtain a licence. The specific category/typeand number of licences will depend on the nature andsize of the gambling operation.In total, the Scheme proposes the creation of43 new licences, covering both land-based andremote gambling activities, which broadly fall into6 categories: betting licences; gaming licences (thiscategory will include lottery and bingo licences);licences for mixed remote gaming and betting;temporary licences; hybrid/cross-over licences; andpersonal licences.The Scheme also proposes the introduction of a“registration scheme” for companies who establishgambling services or gambling support services inIreland, but who do not target Irish players.There are some areas of the gambling sector whichthe Gambling Control Bill will not regulate. The mainexclusions from the Scheme are the National Lottery,the activities of Horse Racing Ireland and the IrishGreyhound Board (Bord na gCon), financial spreadbetting and the State-owned Tote.A New Gambling RegulatorUnder the proposed new regime, applications forlicences will be made to a new gambling regulator,provisionally entitled the “Office of Gambling Control(“OGCl”), although the Irish Courts will have arole in relation to appeals and certain enforcementmatters. The Scheme sets out in broad detail theprocedure which will apply to licence applications, butit is envisaged that more detailed guidelines will bepublished by the OGCI.As well as dealing with licence applications, theOGCI will also act, in effect, as an “inspectorate” forall gambling regulated under the legislation.OGCI officers will have full powers to search, seizedocuments, etc., and the OGCI will be able to seekCourt orders directing service providers, financialinstitutions, advertising services, etc, not to assistunlicensed or non-compliant remote gamblingoperators offering their services to Irish customers.The Scheme proposes the introduction of astatutory basis for cooperation between the OGCIand other bodies, including the Irish police (AnGarda Siochana), the Revenue Commissioners,22 | European Gaming Lawyer | Autumn Issue | 2013
the Private Security Authority, as well asother regulators outside Ireland. Notably,the Scheme includes a Head entitled“International Co-operation”, which providesfor consultation between the OGCI and itsregulator counterparts in other jurisdictions,with a view to entering into “memoranda ofunderstanding”, in relation to various matters.Key FeaturesBetting• The Scheme proposes the creation of10 basic categories of betting licences,including specific types of licences for landbasedbookmakers; land-based bookmakerswho also offer some remote services; remotebetting licences; on-course betting licences;betting exchange licences; pool bettinglicences; and spread betting licences.• Limited gaming may be permitted inbetting shops, although this will require aseparate licence, and cash transactions willnot be allowed.• The Scheme proposes a completeban on “fixed odds betting terminals”,although this was widely anticipated,due to the political contentiousnesswhich has traditionally surrounded“FOBTs” in Ireland.Land Based Casinos• It is proposed to cap the numberof licensed casinos at 40 (there areapproximately 30 “private members’ clubs”currently registered for the purposes of Irishanti-money laundering legislation).• Only smaller scale casinos will bepermitted – it is proposed to limit thenumber of gaming tables and gamingmachines to 15 and 25 respectively,effectively ruling out the possibility of anIrish “resort” casino. This is notwithstandingthe fact that a number of large Irish casinoprojects have been mooted in recent years.• The OGCI will be required to ensurea regional spread of casinos, according topublished criteria.• It is proposed that casino licences willbe 10 year licences, which may be renewed.• The proposed permitted hours ofoperation will be between 11:00 a.m. and4:30 a.m.• The Scheme contemplates that the saleof alcohol will be permitted in premisescontaining casinos. However, it provides thatthere must be “full and complete separation”between the area used as a casino andthe area licensed under the IntoxicatingLiquor Acts. Furthermore, the Schemecontemplates that it will not be possible foralcohol to be brought into or consumed inthe area reserved for casino gaming.Lotteries• Under the Scheme, certain smaller lotterieswill not require a licence (although theywill need to be notified in advance to theOGCI). The Scheme proposes that threetypes of lottery licence will be availabledepending on the level of prizes. Under theScheme prize funds exceeding €50,000 perweek or €250,000 per month (but subjectto a maximum of €400,000 per month) willbe permitted. This is a significant increasefrom the current prize limit of €20,000 perweek under the 1956 Gaming and LotteriesAct (although the recently enacted NationalLottery Act, 2013 includes a provisionwhereby this cap can be increased to€30,000).• To obtain alottery licence, threekey conditions mustbe fulfilled: thelottery must be inaid of a “charitable orphilanthropic cause”;there must be a linkbetween the charitableand philanthropiccause and the localitywhere the lotteryis to be held; and aminimum of 25% ofthe proceeds of ticketsales must be allocatedto the charitable orphilanthropic cause.• A separate licencewill be required forscratch cards. Themaximum prizewhich can be won ona scratch card is setat €1,750, and at least25% of the proceedsfrom the scratchcard sales mustbe allocated to anidentified charitable orphilanthropic cause.• It is contemplatedHenrik Norsk HoffmannAdvokatthat lotteries operated in conjunction witha sales or marketing initiative will require alicence.Bingo• The Scheme proposes that lotteriesand bingo will be separately regulatedgoing forward – currently, bingo isconsidered to be a type of lottery game,and therefore subject to the same rulesapplying to lotteries.• The rule that bingo must alwaysbe for charitable or philanthropicpurposes is being relaxed, but a linkto local interests will be required inmost instances. According to the proposals,there will be a cap on the amount ofbingo proceeds which can be allocatedto overheads, and minimum percentageswhich can be allocated to prize money.Gaming and Amusement Arcades• There will be 2 separate categories ofAs a leading gambling law expert inDenmark, Henrik Norsk Hoffmann plays acentral role on the Danish market.On 1 July 2013 Henrik Norsk Hoffmannlaunched a new law firm, which sets newstandards for the provision of legal services.Alsterarkaden 13, 2.OG20354 HamburgDirect: +49 40 3496 0212Mobile: +49 151 149 230 48Mobile: +45 51 90 18 77Fax: +49 40 3567 9889E-mail: hnh@hnhlaw.euSkype: henriknorskhoffmannwww.hnhlaw.euEuropean Gaming Lawyer | Autumn Issue | 2013 | 23
Page 1: SHaping the future of european gami
Page 4 and 5: [ IMGL Officers ]J. Kelly DuncanJoe
Page 6 and 7: EXTENDEDOVER TWODAYS!Success in cas
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