New gambling laws just enacted in Ireland will introduce significant transformation and a change in risk profile for companies doing business in the jurisdiction. The Gambling Regulation Act 2024 (the “Gambling Act”) has finally passed on 16 October. We have answered six critical questions for you about these new reforms.
1. Who will be impacted by the new law?
The Gambling Act will have a sizeable impact the gambling industry in Ireland, whether in-person (bookmaker shops or casinos), online or remote betting. It will also apply to those operating in a wide range of other industries and stakeholders including:
Advertisers; social media: There are wide ranging restrictions and prohibitions on what can be advertised in relation gambling in Ireland. Social media platforms, outdoor advertising companies, newspapers and others that have carried advertisements will need to be aware.
Broadcasting: The Gambling Act has sector specific rules applicable to broadcasting, and advertising via this media is regulated by the legislation.
Sports Industry: There are sector specific rules applicable to sporting organisations, which will impact on advertising, sponsorship and other collaborations with gambling industries.
Children: Organisations with events or membership aimed at or comprising of children will need to be aware of the specific rules applicable to them.
Gaming: In the run up to the Gambling Act the topic of loot boxes was hotly debated. Gaming operators will need to carefully consider the new laws in the context of their game play and Irish activities.
Consumers: The Gambling Act will also impact consumers due to the measures that are being proposed to combat problem gambling and protecting minors.
2. What are the key changes?
The Gambling Act is broad and far reaching. Some of the key changes are:
- Licensing and Compliance: All gambling operators will be required to obtain specific licenses and adhere to stringent operational standards. There are several types of licences available, such as gambling licences, betting licences, gaming licences and lottery licences. Within each, there are sub-categories of licences, for example, if you are operating remotely.
- Enhanced player / user Protections: There are new mandatory measures introduced to prevent and help with gambling addiction. These include self-exclusion programs as well as the establishment of a Social Impact Fund which will be designed to facilitate research, training, community interventions and other initiatives aimed at reducing or eliminating compulsive or excessive gambling and the social impact of compulsive or excessive gambling.
- Promotions and inducements to participate in gambling activities: The Gambling Act addresses how a licensee may offer inducements or a class of inducements. The Gambling Act also imposes conditions on the offering of inducements. Although a licensee may offer the general public a benefit or advantage, directly or indirectly, to encourage participation in gambling, there is a prohibition on offering a person or a specific group of persons an inducement. Regulations in respect of how an inducement may be offered to the general public may be made under the Gambling Acy by the GRAI. Any such regulation will have regard to whether an inducement or class of inducements would encourage or contribute to, excessive or compulsive gambling, or an increase to the level of participation in gambling activity in the State, contrary to public policy.
- Prohibitions on methods of payments: The Gambling Act sets out obligations on the methods of payment which are acceptable. A licensee is not permitted to accept payment for a relevant gambling activity by credit card, or extend a credit facility to a participant or participate in, arrange, permit, or knowingly facilitate the giving of credit in connection with a relevant gambling activity. The prohibition also includes payment by electronic or digital means which uses money loaded from a credit card. These measures follow those which have already been implemented in neighbouring jurisdictions, such as the United Kingdom.
- Advertising and Sponsorship Restrictions: Stricter rules governing the advertising and marketing of gambling services have been introduced in Ireland in order to protect vulnerable individuals, particularly minors. There are specific rules regarding the use of social media and/or on-demand media platforms as a means of advertising.
3. How will the new law be supervised and enforced?
A new regulatory body, the Gambling Regulatory Authority of Ireland (the “GRAI”), will oversee all gambling activities in Ireland, including the licensing regime, and supervision of gambling activities within Ireland. They will also have the right to impose obligations on licensees and other persons in relation to advertising as well as the right to establish standards for certain gambling products and gambling related services. The GRAI will also enforce the new laws and impose sanctions as appropriate.
4. What are the sanctions and penalties under the new laws?
- Offences for non-Compliance: Those who breach the Gambling Act may be liable for offence. For example, a person who contravenes the prohibition on the use of credit cards as a method of payment for relevant gambling activities, will be guilty of an offence and may be liable on summary conviction to a Class A fine (a fine not exceeding €5,000) or imprisonment for a term not exceeding 12 months, or both, or on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years, or both.
- Penalties for non-compliance: The Gambling Act sets out the potential for Significant fines and other penalties to be imposed on those who breach the legislation. Financial penalties imposed as an administrative sanction on a licensee are capped at €20,000,000 or if greater, 10% of the turnover of the licensee in the financial year preceding the date of decision as to the contravention or in any year in which the act or acts occasioning the administrative sanction occurred.
5. When will it take effect?
The Gambling Act has passed and now has to be signed into law by the President of Ireland. Before taking full legal force, the Minister for Justice will need to sign a commencement order or orders. This will be done through a Statutory Instrument. We will update this article with the commencement date once known.
6. What Next Steps Should You Be Taking?
To prepare for the impending changes, consider taking the following steps:
- Seek Legal Advice: Consult with legal experts to understand the implications of the reform on your business or personal activities and ensure you are prepared for compliance. We can help you with this step.
- Evaluate Compliance: Review your current practices and business in Ireland, and identify areas that may need adjustment to comply with the Gambling Act.
- Secure your licences: Determine if you need a new licence, and get ready to apply for new licences. We help our clients with these licence applications.
- Educate your colleagues: The Gambling Act brings in new legal obligations for management and introduces new risks and requirements for businesses operating in Ireland. Make sure all relevant business functions are aware of the changed legal landscape,
- Review and Update your Marketing and Sponsorship Activities: Evaluate your current activities and how these might be affected. Consider what changes you need to make and start that change process now.
- Update Your Contractual Suite of Documents: Review your o contracts that you currently have in place and engage with key stakeholders in your business to assess and analyse what updates are required.
- Stay Informed: Keep up to date with the latest developments regarding the Gambling Act. Subscribe to industry newsletters, attend relevant webinars, and follow updates from regulatory bodies.
The Gambling Act marks a pivotal moment in the regulation of gambling activities in Ireland. By understanding the key aspects of the Gambling Act and taking the initiative, you will be able to navigate the changes effectively and ensure compliance.
If you would like any further information on any of the points raised in this article, please reach out to us and we can support you in a way that works best for you.
