Gambling Legislation
Update
Agenda
Introduction
Overview of the Gambling Control Bill 2013
Current Progress
Introduction
This document has no legal effect. It contains proposals for
the licensing and regulation of gambling in Ireland. Draft
legislation will be prepared on the basis of these proposals, for presentation to the Oireachtas and enactment.
Replace Betting Act 1931 and G&L 1956
Fairness, protection of vulnerable, free from crime, consumer
choice/protection
Minister for Justice – Sole licensing authority and regulator
Creation of the OGCI – Office of Gambling Control Ireland
Introduction
Bill may be commenced all together or on more than
one date
Having a licence does not confer any expectation,
entitlement or presumption as to granting of any
licence under 2013 Act – no ‘grandfather’ status
Applies to all gambling in and out of State offered to
Introduction
Codes of Conduct and Codes of Practice issued by Minister
(with approval and input from Revenue Commissioners and Gardaí) and will invite comments and input (2 to 6 months from circulation) but code will not incur legal action on its own.
Compliance standards (sw, maintenance, technical standards,
reporting, staffing)
May address regional or national patterns of gambling in the
public interest, including capacity and number of gaming machines of a class or type.
May interact and share information with other regulators
Licensing
Licence issued may be changed by OGCI if required
Will dictate standards of premises, technology/
machines, records/reports, level and competencies of
staff, fees, social responsibility requirements,
infringements and offences
Licences: ALL gambling suppliers and gambling
service providers
Licence procedure yet to be defined
Licensing Summary
79
Category Activity
1 [A – K] [17] Betting – land based and remote 2 [A – W] [23] Gaming – land based and remote 3 [A – B] [2] Remote – mixed betting and gaming 4 [A – C] [3] Temporary licences – all types
* General rule: Licences required in all cases where the customer is in the State, except small scale lotteries – see below.
(b) Registration [2 categories]
1 Service Facility in the State The facility supports a service which is not available nor availed of in the State 2 Suppliers Suppliers of machinery, services to the
gambling industry
79
Category Activity
1 [A – K] [17] Betting – land based and remote 2 [A – W] [23] Gaming – land based and remote 3 [A – B] [2] Remote – mixed betting and gaming 4 [A – C] [3] Temporary licences – all types
* General rule: Licences required in all cases where the customer is in the State, except small scale lotteries – see below.
(b) Registration [2 categories]
1 Service Facility in the State The facility supports a service which is not available nor availed of in the State 2 Suppliers Suppliers of machinery, services to the
Licensing Summary
80
2. Types of licence, per category
1A, 1B, 1C, Land based bookmakers 1D Land based but with some
remote service 1E, 1F Remote betting 1G On-course betting
Category 1:
Betting – the basic licences
1I, 1J, IK Betting exchanges, pool betting, spread betting
2A Gaming arcades 2B Amusement centres 2C, 2D, 2F Gaming at festivals, etc. 2H, 2I, 2J, 2K Lotteries*
2L, 2M, 2N Bingo
2Q Remote bingo
2R Casinos**
2O, 2P Remote gaming 2S, 2T On ships
Category 2:
Gaming – the basic licences
2W Tournaments
* Some small scale lotteries exempt from licensing requirement (see Head 19(2)). ** Casino games permitted in casinos (licence 2R) or by remote means (2O, 2P).
3A Where service provider is in the State
Category 3:
Where remote services include gaming and betting
3B Where support facility is located in the State
4A Betting or gaming,
unforeseen development
Category 4:
Temporary licences
4B (i), (ii) Special events and circumstances
2E Limited gaming in catering outlets, bars
Hybrid / Cross-over licences
2G Limited gaming in betting shops 1H Betting 2U Casino 2V Gaming Personal licences* 4C Temporary
* The requirement to have a personal licence will depend on the nature of duties.
80
2. Types of licence, per category
1A, 1B, 1C, Land based bookmakers 1D Land based but with some
remote service 1E, 1F Remote betting 1G On-course betting
Category 1:
Betting – the basic licences
1I, 1J, IK Betting exchanges, pool betting, spread betting
2A Gaming arcades 2B Amusement centres 2C, 2D, 2F Gaming at festivals, etc. 2H, 2I, 2J, 2K Lotteries*
2L, 2M, 2N Bingo
2Q Remote bingo
2R Casinos**
2O, 2P Remote gaming 2S, 2T On ships
Category 2:
Gaming – the basic licences
2W Tournaments
* Some small scale lotteries exempt from licensing requirement (see Head 19(2)). ** Casino games permitted in casinos (licence 2R) or by remote means (2O, 2P).
3A Where service provider is in the State
Category 3:
Where remote services include gaming and betting
3B Where support facility is located in the State
4A Betting or gaming,
unforeseen development
Category 4:
Temporary licences
4B (i), (ii) Special events and circumstances
2E Limited gaming in catering outlets, bars
Hybrid / Cross-over licences
2G Limited gaming in betting shops 1H Betting 2U Casino 2V Gaming Personal licences* 4C Temporary
Licensing Summary
80
2. Types of licence, per category
1A, 1B, 1C, Land based bookmakers
1D Land based but with some
remote service
1E, 1F Remote betting
1G On-course betting
Category 1:
Betting – the basic licences
1I, 1J, IK Betting exchanges, pool betting, spread betting
2A Gaming arcades
2B Amusement centres
2C, 2D, 2F Gaming at festivals, etc. 2H, 2I, 2J, 2K Lotteries*
2L, 2M, 2N Bingo
2Q Remote bingo
2R Casinos**
2O, 2P Remote gaming
2S, 2T On ships
Category 2:
Gaming – the basic licences
2W Tournaments
* Some small scale lotteries exempt from licensing requirement (see Head 19(2)). ** Casino games permitted in casinos (licence 2R) or by remote means (2O, 2P).
3A Where service provider is
in the State
Category 3:
Where remote services include gaming and betting
3B Where support facility is
located in the State
4A Betting or gaming,
unforeseen development
Category 4:
Temporary licences
4B (i), (ii) Special events and circumstances
2E Limited gaming in catering
outlets, bars
Hybrid / Cross-over licences
2G Limited gaming in betting
shops 1H Betting 2U Casino 2V Gaming Personal licences* 4C Temporary
Licensing Detail - Betting
Cat 1A – Bookies up to 3 premises (3 yr)
Cat 1B – Bookies of 4 to 10 premises (3 yr)
Cat 1C – Bookies more than 10 premises (3 yr)
Cat 1D – Bookie with <25% of turnover remote (3 yr)
Cat 1E – Remote Betting Service for consumers in Ireland (2 yr)
Cat 1F - Remote Betting Service for consumers in Ireland and
company based in Ireland (2yr) telephone and electronic
Cat 1G – On course Bookie (3 yr)
Cat 1H – Personal Bookies licence (1 yr)
Cat 1I – Betting Exchanges (2 yr)
Cat 1J – Spread Betting (2 yr)
Licensing Detail - Gaming
Cat 2A – Gaming Hall/Arcade with <20% remote business (3
yr) 10am to 1:30am May to Sept, 10am to midnight rest of year
Cat 2B – Amusement Arcade open to young persons (3 yr) same
opening as before but close at 10:30 and 9pm (can exist on same premises as 2A but with separate entrance, not internal)
Cat 2C – Funfair/Circus (up to 1 yr) no gambling by U18’s
Cat 2D – Short term gaming facility (up to 3 months) festivals
Cat 2E – Gaming in catering outlets (1 yr)
Cat 2F – Gaming in a public place (2 yr)
Cat 2G – Gaming in betting shops (up to 15% of turnover or up
Licensing Detail - Gaming
Licensing Detail - Lottery
Cat 2H – Lottery linked to charitable or philanthropic cause, min of25% of sales (sales are value of tickets in draw whether paid for or not) allocated to charity, €120k max prizes annually (2 yr)
Reporting every 3 months
Cat 2I – Lottery with €50k per week or €250k per month (2 yr)
includes consultation with local Gardaí OR Lottery in excess of the above up to €400k per month (1 yr) minimum of 25% of sales (sales are value of tickets in draw whether paid for or not) allocated to
charity (OGCI may dictate prize funds and licence fees on case by case basis)
Cat 2J – Lottery for commercial promotion free to customer
Cat 2K – Scratch Cards (1 yr) max €1750 prize, 120k max pa, 25%
Licensing Detail - Bingo
Cat 2L - Bingo with prizes up to €8k per
month (2 yr)
Cat 2M – Bingo with prizes up to €25k per
month (2 yr)
Cat 2N - Bingo with prizes up to €50k per
month (2 yr) max 500k pa (but an order may
be given by OGCI for higher prizes on case by
case basis)
Licensing Detail - Casino
Cat 2O – Remote casino (2 yr)
Cat 2P – Support service for Remote Casino (2 yr)
Cat 2Q – Remote bingo (1 yr)
Cat 2R – Casino (10 yr)
Cat 2S – Cruise Ships (1 month)
Cat 2T – Ferries (1 year)
Cat 2U – Personal Casino (1 year)
Cat 2V – Personal Gaming (1 year)
Licensing Detail - Other
Cat 3A – Remote Gaming & Betting (2 yr)
Cat 3B – Remote Gaming & Betting Support (2yr)
Cat 4A – Unforeseen betting or gaming (3
months)
Cat 4B(i) – Special Events up to 5 days (1 week)
Cat 4B(ii) – Hosting Professional Tournaments (1
week)
N.B. Licences may not be linked or shared
unless approved by OGCI in advance and
conditions may be attached
Implications for linked progressives, linked
bingo and wide area gaming
Considerations
- Will consult with Gardaí in advance of licence issue and seek H&SA, Fire and local law certification
- require notification of frequency of bingo sessions - max players per session
- times
- public order compliance
- where licence is held by a charity 25% min goes to charity - OGCI may limit licences in a locality
- OGCI will consider links between bingo/charitable purpose and local charity
Considerations
- An Order may be made following receipt of a request from OGCI stating its position on the suitability and location of the venue, the impact on other amenities, local demand, and other relevant
considerations.
- Minister may adjust prize maximums after three years of operation for 4 year intervals (subject to above considerations)
- It will be an offence not to keep detailed records
- Licences may be adjusted mid term to increase or vary gaming devices or tables
- A national Register of gambling licencees shall be created and published online excluding commercially sensitive information
Licence Holders
Any person or entity may apply for a licence
Licencees on behalf of companies will be held
responsible equally with company
Fit and proper person (legal description)
May hold multiple licences
If casino licence (Cat 2R) has bar licence same
licencee has to have both licences (except for
temporary events)
Licensed Premises
Will require minimum standards set by OGCI for integrity of
service (may close premises for 7 days to remedy compliance) including
Ensuring ALL services offered are suitable
Financial Viability and Liquidity
Social Responsibility provisions
Will require proof of adequate insurance, H&SA and Fire
certification
Licences are non transferable unless OGCI approves
Have to advertise licence applications in newspapers (2 cols by
Licence Applicants
Indicate category, location(s) with map(s) and floor plan
Name, position, previous gambling history
Company structure (inc links to other companies), registration, audited
accounts, tax clearance certificate, proof of employees social security deductions and lodgement, banking details
Planning permission compliance (no licence issued without planning)
For casinos (Cat 2R) floor area for tables and external signage plan
Games and services provided
Equipment for use by customers
Details of type and number of equipment
Capacity (Stakes, prizes) and functions
Maintenance schedules/arrangements
Licence Applicants
Staffing levels and structure
Regular operational review/compliance statement submitted to OGCI
Details of security providers and their registration with PSA
Related or conflicting interests
Any interest that may financially benefit or enhance value or provide paid
service to licencee for compliance
Includes spouses, civil partner or adult children of applicants
OGCI will determine interest but it may not necessarily affect licence being
issued
Convictions to be declared from any jurisdiction, but may not necessarily
Licence Process
Written, standard form
May have oral hearings if needed and assessor for OGCI
(might not be an employee of OGCI) will preside and report
Assessors will carry out ‘reasonable checks’ and may seek
additional information and may be assisted by other statutory agencies and other regulators
May be rejected on grounds of insufficient information, grave
convictions, financial or taxation shortcomings or ANY issue that may cause concern to OGCI and will not be reconsidered unless formally appealed
Licence Assessment
Policy Directives of Minister
Primary Purposes of Licence
Gardaí submissions
Planning authority views (if any) & Third Party views (if any)
Competition law requirements
HRI/Bord na gCon views (for Cat 1G)
Any other relevant matters
For Casino (Cat 2R licences);
Geographic distribution
Population density
Ease of access to location of applicant
Licence Issuing Decision
May be granted with terms and conditions
Partial grant licence
Reject licence in full
Will publish licence issuing in newspapers and shall
Licence Appeals
Any applicant may appeal a decision not to grant
Any third party may appeal a decision to grant
Gardaí may lodge an appeal to grant
Decision on appeal within a month
No further appeal to OGCI except on point of law to
High Court which may redirect OGCI to review
Does not prevent another application
District court may uphold, vary or overturn OGCI
decision
Personal Licences
Manager of premises or business, Finance officer, accountant or
compliance manager
Croupier or person managing table games (pit bosses etc.)
Any other person the OGCI deems have authority or influence on licensed
service
Service licence holders may not hold personal licences when personal
licence directly operates or supervises games/machines
OGCI will have a complaints service for customers about personal licence
holders and will investigate directly
OGCI may grade personal licences to reflect managerial duties or not
Applications direct to OGCI and not via licence holder
Supply personal info, immigration compliance, employer, location, duties,
qualifications, experience, detailed employment record, relationship (if any) to licence holder (business, personal or family), convictions, company law orders, tax clearance, bank details, medical history (substance abuse), other licences held (Liquor or Auctioneering or PSV)
Licence Fees
For receipt/processing of applications & Lodging of appeals
Licence award fee & Registration fee
May charge supplementary fees; Per machine, Per table, Per
terminal, Per game and Fixed fee per premises
May be charged higher fee in location where OGCI feel it is
merited (depending on location, population, potential
earnings, capacity of business to carry a higher fee or any other relevant factor)
Fees determined by
Complexity of assessing applications
Resources require to assess application
Subsequent compliance and enforcement
Relative benefits that may be gained by licencee
Licence Securities
OGCI may require a bond in such form and
amount it determines to be lodged in an Irish
bank
Security may be called upon for fines
Only OGCI may release bonds and will
General Licence Terms & Conditions
Non compliance are grounds for revocation
OGCI may restrict or prohibit certain machines or activities in the public
interest and may apply to all or some venues by type or class, it may include
Machine number limits, Terminal number limits, Type of machine limits
(i.e. betting or gaming)
Limit hours, Limit stake, bet or fee, Prescribe a method of payment
Limits on prizes, Limits on number of successive plays by same player
Limit on places where machines can situate
Limit on category of premises where certain machines can be situated
Permit OGCI unrestricted access to servers, games
Require suppliers to furnish information on sales and location of their
products
No FOBT or machine that is capable of FOBT content,
Service Licence Terms & Conditions
Duration of licence, Payment of fees Upkeep and maintenance requirements of premises, Hours of business
Full, accurate staff details, Provision for staff training
Self exclusion and due diligence policies
Maintain adequate reserves (liquidity)
Full up to date records and accounts, Retention of records for 2 years min
Obligation to co-operate with OGCI & provide, where practical, customer
receipts
Systems for monitoring players whose gambling may give cause for
concern & Measures to counteract under age gambling
Require to submit reports as required on operations
Details of complaints/compensation procedures
Retain an office accessible by OGCI for reports/records
Details of servers used in any service (if not guaranteed,
Personal Licence Terms & Conditions
Non transference
May be for period shorter than the maximum
(1 yr)
Prohibition on tips/gratuities/gifts
Wear a badge issued by OGCI
Notify OGCI of any convictions while
Powers of OGCI Officers
Each officer will have a warrant to perform their duties May enter, search and examine any licensed premises or
machine
May demand name and address of any person on premises
May demand production of licence
May not enter private dwelling without District Court warrant
which may be given on sworn information of officer to court (does not require Gardaí)
May question any person on the premises
Access to any written or electronic records and get copies
Inspections
Will be scheduled annually or more often if needed
Will note any infractions and inform licencee
May undertake duties outside jurisdiction
May be accompanied by Gardaí
May be accompanied by other State agencies
May prevent access to remote services, restrict advertising and
Infringements
May be dealt with by OGCI or court
Licence breach may be regarded as infringement if accidental,
unintended or junior staff action where any losses to customers made good, retraining
Penalties
Oral warning (recorded)
Formal written warning
Admin fine not exceeding €5,000
Suspension of licence for up to 3 days
Second infringement – suspension of one week, penalty up to
€10,000
General
Manipulation of outcome
Offence to offer inducements to participate in a game
Licencee may refuse bets if patterns suggest an offence
OGCI will inform Gardaí and any other state agency
appropriate
Licences may be reviewed, rebuke, revoked and/or fined
Cheating
Cheating is an offence
General - Safeguards
Regular service review to prevent non permitted persons
Identify measures to address risks (inc staff training,
awareness programs)
Outcome of reviews to be sent to OGCI
Systems to minimise risks of underage gambling
Arrangements to monitor potential problem gambling
Arrangements to confirm identity and age of customers
Arrangements for verifying player ID and due diligence
General – Promoting Awareness
Take steps to increase awareness of problem
gambling and how to gamble responsibly and show
risks from misuse of gambling
Shall apply to all points of access to service
Prominent posters, leaflets and links on websites
General
Credit
No credit to be offered including off set against future
winnings
Self Exclusion Register
OGCI will maintain a register of all self excluded
persons
Arrangements to be in writing, minimum period of
one month, verify identity to OGCI which may make
that available to licence holder and only removed by
arrangement to remove in writing
General - Advertising
Only permitted by licence holders & May be subject to future OGCI rules Must never feature children
Must never exploit susceptibilities of vulnerable persons
Must not appeal to young persons/reflect youth culture
Must not be endorsed by youth idols
Must not suggest gambling as a ‘rite of passage’ & be socially responsible
Must not portray gambling as a solution to financial concerns
Must not suggest enhancement of personal qualities (recognition,
admiration or superiority)
Must contain a social responsibility message and direct to a source of
information
May be restricted to watershed hours of broadcast
Certain bingo ads may be permitted at any time, except
General - Advertising
Promotions
Only permitted on day when it applies
Each shall contain an OGCI approved warning on risks of
gambling and information sources for problem gambling
Sponsorship
Only events appealing to over 18’s
No teams or individuals under 18 or appeal to same group
Complaints & Compensation
Each licence holder will commit resources to fund
and operate a procedure for processing complaints
(may be individual or shared fund)
Monetary penalty for non contribution (1/52 of
licence fee, after 4 weeks suspension of licence)
No further action can be taken by a customer
Social Responsibility
A committee on responsible gambling will be established
One nominee of Minister for Social Protection, voluntary/community
sector, HSE and 2 from licence holders
Chaired by Chief Officer of OGCI
Social Responsibility Fund
Contributions from licence holders will fund it from a percentage of
turnover
To promote socially responsible gambling and assist counteracting ill
effects on society, may include education, awareness programs, research, treatment programmes, production of materials
Fund administered by OGCI and allocate funding
May be revoked if one or more funds has been established by licencees
subject to all contributing and it meets purposes and secured for at least three years
So when is all of
this going to
Nobody knows.
Aspiration by government to have
legislation in place before the end of
this government term.
April 2016.
Current Progress
Draft paper published – as discussed in this presentation
Committee consultations/Oral hearings received
Report sent to government with 8 primary recommendations
Clarify licensing regime
Charitable self funding, review lottery limits
Review independence of regulator
Review regressive definitions
Clarify social gambling fund operation
Define social exclusion register further
Consider limitations on Ministerial powers regarding large scale
developments (i.e. Resort casinos)
Expected Happenings
Bill now officially in draft – was planned for publication inSept 2014, now mooted for Spring 2015 (owing to legislative calendar restrictions)
However, this will only be ‘primary enabling legislation’
Light on detail, left for regulator to define
May have some immediate positives; (e.g. removal of local
authority powers to rescind any part of the Act but will have little specifics for current operators)
Lottery Regulator to be appointed in Q2 2014 (may assume
control of Gaming and Betting post legislation in 2015)
Calls for an interim regulatory authority from industry but
Expected Happenings
OGCI expected in mid 2015 to start with defining finances of
its operation and what it will need from industry
OGCI will be cost neutral to government
100% funded by the industry
Until it has defined this, it cannot set licence fees
Definition of what is gaming, what is betting and what is
amusement?
Crossover period/Compliance Period TBD for existing
operators
Licence date granting to licence date expiration is expected to
Unknowns
Definition of who pays what OGCI fees and how often TBD
Definition of stakes and prizes TBD
Definition of who can get a licence TBD
Definition of tax, betting duty or MLD TBD
Parameters for machine density TBD
Parameters for venue locations TBD
Parameters for reporting & compliance TBD
Parameters for suppliers registration/approval TBD
Parameters for social responsibility TBD
Conclusion
There is a lot of debate to be had, lots of lobbying to be doneand lots of definitions to be enhanced and contributed to
Present operators should not see any effect on their business
until late 2015 to late 2016 with lots of notice given
This is an inclusive process with no ‘favoured’ or ‘inside’ track
for this legislation
It will be a clear, transparent and inclusive process
It is proposed to be an example of best practice globally with
regulation and not prohibition being the operative term
However, no one has an entitlement to anything under a new
Questions?
John Purcell Managing Director
Purcell & Associates
16/17, South Terrace, Cork, Ireland. T: +353 (0) 21 431 6776
one of the leading sources of consultancy expertise in the gambling industry.
