Significant legislation providing for the establishment of a new regulatory framework for gambling activities in Ireland has been signed into law by the President. The Gambling Regulation Act 2024 (the “Act”), which is described as “historic” in the Government press release announcing its passage, is now awaiting commencement by Ministerial Order.
Once commenced, the Act will have a significant impact across a wide range of business sectors as it not only applies directly to betting, lottery and gaming activities, but also to the advertisement of those activities by media platforms. It may also apply to operators outside of the traditional gaming sector, depending on the nature of any promotions or games offered. The Act will entirely replace the existing legal framework for gambling and, although it was accepted that the current regime was in need of modernisation, some provisions were the subject of robust debate and lobbying during the Act’s 20-month-long passage through the Oireachtas.
This development is notable also as it forms part of a broader expansion of regulation and enforcement across multiple sectors in the State as described in our Matheson Summer 2024 Horizon Tracker, including the recent passage of legislation to enhance the regulation of charities in Ireland and the ongoing empowerment of Ireland’s new media regulator, Coimisiún na Meán.
Against that backdrop, this insight will look at some key elements of the Act and their likely impact.
A New Statutory Regulator
First and foremost, as noted in our previous insight covering the General Scheme of the legislation here, the Act provides for the establishment of the Gambling Regulatory Authority of Ireland (“GRAI”), which will be responsible for implementing the new regime, as well as for monitoring compliance and taking any necessary enforcement action. The Government has described the purpose of the GRAI as follows:
“The Authority will protect the public by ensuring a gambling sector that operates transparently and in accordance with the laws of Ireland. It will also create awareness of problem gambling and establish safeguards to address it.”
The formation of the GRAI has been proceeding in the background since the legislation was initially published in 2022, with over €3.337 million already spent on its establishment. The Act provides that the GRAI will be funded by advances from the Government for its first 3 years, with a further €9.1 million designated for the GRAI in Budget 2025. After that initial 3 year period, the Act provides that the GRAI should fund itself from licensing charges, with the proviso that the Government may supplement its operational costs if necessary.
A Social Impact Fund, to finance research and other social initiatives to reduce problem gambling, will also be established and managed by the GRAI and licensees will be required to contribute to that fund in proportion to their turnover.
Licensing
A comprehensive new licensing regime will be established by Part 5 of the Act for any “gambling activity”, which includes betting, gaming and lottery activities, as well as the sale or supply of a gambling product or a related gambling service.
Different types of licences – each of which may be for in-person and/or remote gambling - are provided for, including:
- business to consumer gambling licences
- business to business gambling licences
- gambling licences for a charitable or philanthropic purpose
- gaming licences
- lottery licences
Business to business licences in particular are a new form of licence to the system and there was a concern that the definition of “gambling related service”, to which they would apply, in the initial draft legislation - which included “facilities for the holding and managing of customer funds” - could bring financial services providers to gambling operators within the requirement to obtain a gambling licence. However, that wording has been removed from the final version of the legislation.
The concept of a gambling licence for charitable and philanthropic services is also new and will apply to gaming or lottery activities used for fundraising by non-profit organisations. This is intended to be a more streamlined process to acknowledge the difference between those organisations and other gambling operators. Chapter 3 of Part 5 further provides an exemption from the licensing requirements for certain charitable lotteries for small amounts (winnings under €2000) and lotteries held in conjunction with selling or marketing of products (winnings under €5000).
A detailed application process, including the requirement to publish a public notice 28 days prior to applying for a licence, is set out in Chapter 4 of Part 5 of the Act and Chapter 9 of Part 5 sets out various conditions that can be attached to each type of licence. The charges attaching to the various licences on offer have not yet been confirmed.
Transitional provisions to ensure a smooth changeover for existing licence holders (whose licences will remain in force until expiry) are also set out in Part 10 of the Act and interested parties can register with the GRAI in advance of its establishment here.
Advertising, Inducements and Payments
Part 6 of the Act sets out the various obligations of licensees under the Act, including robust obligations in relation to the protection of children. All licence holders are required to report any suspicious gambling activity to the GRAI.
In keeping with its stated purpose to protect the public and tackle problem gambling, the Act empowers the GRAI to strictly regulate how gambling advertising can be broadcast, displayed or published. This was one of the areas that was the subject of debate as there were calls for an outright ban on advertising to be imposed that ultimately was not implemented. The Act, as passed, contains broad-ranging provisions in relation to advertising, including via social media and video-sharing platforms, in Part 6, Chapter 1. Of particular note is that gambling advertising may not be directed at children nor broadcast between the hours of 5:30 am and 9 pm. Charities and other non-profit organisations will, however, be exempt from some of the stricter rules in this area. The GRAI is empowered to apply to the High Court to prohibit any advertising done in contravention of the Act and also to make further regulations in relation to advertising where appropriate.
The issue of gambling operators providing inducements to gamble was also the subject of debate. Ultimately, the outright ban on inducements included in the legislation initially was removed and replaced with a prohibition in Part 6, Chapter 3 of the Act, on providing inducements to specific persons or groups but continuing to allow incentives to the general public.
Holders of business to consumer licences are also prohibited from accepting payment for any relevant gambling activity by credit card or knowingly facilitating the provision of credit in relation to a gambling activity.
Compliance and Enforcement
Wide-ranging sanction and enforcement powers are granted to the GRAI by Part 8 of the Act, including the power to:
- issue a compliance notice;
- direct an investigation;
- apply to court for suspension or revocation of a licence or to block access to online services;
- conduct an oral hearing;
- apply for emergency orders to protect the public from serious consequences of an ongoing contravention, including blocking access to online services; and
- impose administrative sanctions including: financial penalties (up to €20,000,000 or ,if greater, 10 % of the licensees turnover) or the suspension, revocation or imposition of a condition on any gambling licence.
The explanatory memorandum to the legislation states that “the overall policy intention is to encourage compliance rather than to enforce penalties for non-compliance” and section 190(2) of the Act sets out various factors that the GRAI will consider when determining what course of action to take, which include a consideration of the nature, gravity and duration of the breach.
The GRAI must apply to the Circuit Court for confirmation of its decision in relation to a particular contravention and any administrative sanction imposed and an adjudication officer can refer any question of law relating to an administrative sanction to the High Court. Detailed provisions are included in relation to the process of appealing any enforcement powers applied.
A broad range of offences are also provided in the Act that can result in liability for a relevant officer or beneficial owner of a licensee where it can be proven that they consented or connived in it or that they were guilty of wilful neglect. On summary conviction, this may result in the imposition of a class A fine (up to €5000) and/or imprisonment for up to 12 months or, on indictment, to an unlimited fine and/or imprisonment for up to 5 years.
Conclusion
The introduction of what has been described as a “new era” of gambling regulation has been provided for in successive Government Justice Plans, including its most recent Justice Plan 2024, with the overarching aim of enhancing consumer protection.
Whilst modernisation of the current system for gambling regulation in Ireland was certainly overdue, at a time when the media in particular is already grappling with increased regulation from ComReg and Coimisiún na Meán, and charitable organisations are imminently facing an increased administrative burden on the coming into force of the Charities (Amendment) Act 2024, the Act will undoubtedly present some immediate challenges. However, it does appear that the intention is for the new regime to be introduced gradually, with CEO-designate of the GRAI, Ms Anne Marie Caulfield, noting (in the government press release referred to above) that there will be “a phased introduction of our functions, with a focus on licensing initially.”
The Government has indicated that it intends to fully commence the Act within 12 months and so any operators within scope of the Act should begin to carefully consider their own compliance with the requirements of the Act.
For more information in relation to the new regime, please contact Karen Reynolds, Carlo Salizzo or your usual Matheson contact.