Gaming and Lotteries Act of 1956 insufficient
Since the very start of my poker career in 2006, there have been murmurings of a radical change to the laws in Ireland that pertain to gambling. There was a sense that the Gaming and Lotteries Act of 1956 was insufficient for dealing with a modern betting landscape and that it might be in the best interests of the country to centralise the regulation of practically all gambling activities.
there was a sense that the powers-that-be would ultimately leave the law unchanged
Year after year, when the subject came up, there was a sense that the powers-that-be would ultimately leave the law unchanged. It was assumed that this inertia stemmed from a combination of factors – the influence of the horse-racing lobby, the desire to preserve a growing industry worth billions and Irish cultural attitudes that acknowledge the fun associated with gambling and tend not to stigmatise those that partake in it.
In more recent years, however, there has been a more concerted effort by Irish lawmakers to alter the status quo. Statistics suggest that problem gambling is on the rise with a 2023 Economic and Social Research Institute (ESRI) study classifying 3% of Irish adults as problem gamblers with a further 7% in a moderate risk category. The heel-dragging had to stop and the need for a bill that would better protect punters seemed inevitable.
Nanny-state
On October 23, 2024, the Gambling Regulation Bill was signed into Irish law, three years after it was first floated by the Irish government and two years after it was initially published. Further amendments are possible between now and its enactment. However, if it is implemented as written, it will hobble and probably destroy much of Ireland’s gambling, gaming and mindsports industry. To call it a game-changer would be an understatement.
The Irish government clearly have an extremely difficult and unenviable task, seeking to simultaneously protect vulnerable people and preserve an industry that is worth at least €6bn ($6.3bn) annually. It was hoped that this piece of legislation might strike a balance between addressing the very real concerns of excessive gambling while still providing a workable framework for operators.
it is being framed as a public health measure
The language within the bill, however, makes it clear that it is being framed as a public health measure and as such, it is being criticised for overreach, both by the operators who perceive the new measures as draconian and the gambling community who view it as a nanny state intrusion into their lives.
The Gambling Regulatory Authority of Ireland
There are some welcome measures. The Bill will establish the Gambling Regulatory Authority of Ireland (GRAI) as a body responsible for the regulation and supervision of all forms of gambling in the state. Previously, the regulation of gambling was messy, falling as it did between several governmental departments.
Once created, the GRAI will be partly funded by industry levies and will have broad powers of investigation. An adjudication mechanism will be developed for alleged contraventions and the Authority will be able to take action within that framework. This may result in administrative sanctions, including the imposition of financial penalties of up to €20m ($21.1m) or 10% of turnover.
The GRAI will also be empowered to deal with complaints in respect of licensees within a new licensing system that will be created. There will be three different categories of license – B2C licences, B2B licences, and charitable/philanthropic licences. Previously, there was no framework for an operator to obtain a licence to legally provide many forms of gambling products.
Customer protection
The Bill also looks at inducements and incentives, an area where operators, if unchecked, can behave very predatorily. On this, inducements will only be permitted so long as they are general and aimed at the public writ large. Those which more forensically target individuals based on their age, gender, ethnicity or even the sports team that they support, are prohibited.
A National Self-Exclusion Register will also be established
The Bill creates a Social Impact Fund and a National Self Exclusion Register. The Social Impact Fund will fund further research into problem gambling and create initiatives aimed at the treatment of compulsive gamblers. A National Self-Exclusion Register will also be established forbidding operators from accepting bets from customers who have opted to self-exclude from online services. Credit card gambling will also be prohibited.
It is hard not read this Bill, with its significant emphasis on customer protection, without seeing its antecedents in the 2023 ESRI study. Anne Marie Caulfield, CEO Designate of the GRAI, said:
“The true extent of problem gambling in Ireland is hidden from public view and the importance of this ESRI study in shining a light on the extent of gambling harm in Ireland cannot be underestimated. Problem gambling impacts not just on the individual involved but on their family and friends. The insights from this and other studies into gambling in Ireland will be invaluable to the Authority as we undertake our work in education, awareness and in introducing other measures, such as the exclusion register, to protect against gambling harm.”
Pushback
The issues arise with some of the other, more restrictive provisions within the Bill. With regard to advertising, while some exemptions may be available, there is a proposed watershed restriction between the hours of 5.30am and 9pm. Both operators and broadcasters have pushed back on this provision, suggesting it would spell the end of televised horseracing in Ireland.
In addition to the watershed, gambling advertisements will be prohibited on certain on-demand and social media services, unless the recipient has an account with the platform concerned. The GRAI may also further curb advertisers by dictating the types of ads permissible, prescribing when, where, how often and for how long they may be shown.
applying such limits actually renders several games completely unviable
The Bill imposes maximum stake of €10 ($10.58) on a player and maximum winnings of €3000 ($3175) on casino games, with similar restrictions applied to lotteries and bingo. (The National Lottery in Ireland is excluded from these limits because of course it is.) The wealth of an individual has no bearing on these restrictions. Also, the word ‘stake’ is ambiguous, depending on the form of gambling in which you are engaged, yet it is used like it has an overt and patent meaning. The problems don’t stop there as applying such limits actually renders several games completely unviable.
Gavin asks the government to reach out
Without doubt, Ireland needs a better, more stringent law, one that recognises and accounts for the fast-paced, online-driven gambling landscape of today. This sentiment was echoed by Fintan Gavin, founder and CEO of the Irish Poker Tour, who spoke exclusively to VegasSlotsOnline News:
“Regulation is badly needed in our industry so this new law can be a really positive thing. It gives the big brands more assurances, helps to bring sponsorship money in and keeps the bad actors out. However, it’s so important that there is an understanding of how the regulations affect each sector and for that you need people with the right knowledge. Compare slots to tournament poker – it’s apples to oranges – two completely different games that appeal to two completely different mindsets and therefore require two completely different regulatory approaches.”
Poker is very different from other forms of gambling, a skill game of incomplete information with a gambling component which can be tackled probabilistically. If this Bill were to pass in its current form, games with a progressive jackpot element would have to be scrapped, betting on longshots would be redundant and poker tournaments, in particular, would be completely infeasible. Gavin went on to make an appeal:
“As far as I know, the €10 max stake with the €3000 max payout isn’t being applied to horse racing on account of it being classified as a sport and we hope that poker will receive its own exceptions so that the game is still stageable. I sincerely hope that representatives from the government reach out to learn about how poker operates. I think if they do that, then a sensible, practical and coherent provision for it can be written into this law.”
Players will seek out black market operators
This Bill is obviously well-intended but, in its current form, it lacks nuance and any fundamental understanding of the different products that fall under the definition of gambling. The other great fear is that a failure to properly tailor this piece of legislation to the different types of gambling products available will only drive players away from regulated operators and to unsafe, unlicensed black market operators.
it has played into the hands of shady offshore poker apps and sites
Prohibition did not stop Americans from drinking. Rather, it played into the hands of criminals. The UIGEA did not stop Americans from gambling online. Rather, it has played into the hands of shady offshore poker apps and sites who provide little to no security and encourage players to use VPNs and who bypass jurisdictional issues and avoid processing fees via the use of third party agents and cryptocurrency transactions. These agents act as banker in a totally unregulated environment, meaning if the agent goes rogue, the player is not protected.
Therefore, the Irish government need to be very careful as they consider amendments to this Bill. Laws which interfere unduly with personal choice are usually unpopular but laws which actually backfire and create a bigger problem are loathed and derided for their counter-productivity.
Poker deserved special status as a mindsport
The data collected by the ESRI in August 2023 showed that three-quarters of Irish adults spent money on at least one form of gambling with the most common forms being lotteries and scratch cards, followed by punting on horses. Those three pursuits have the worst Return To Player (RTP) of any forms of gambling so to give dispensations to these while making it impossible for poker – a game more akin to chess or bridge – to operate would be very wrong.
Poker has emerged from the primordial goop of road gamblers and riverboat shenanigans
That is to say nothing for the community around poker, something which does not exist for lottery-players. Poker has emerged from the primordial goop of road gamblers and riverboat shenanigans to become a respectable thing – a legitimate pastime, a mind-sport and even a TV product with an engaged community of enthusiasts and spectators. VSO also reached out to JP McCann, Tournament Director and Host of The Irish Poker Open who emphasised the social aspect and poker’s special status as a mind-sport:
“The introduction of Ireland’s new gambling regulations marks a pivotal moment for our poker industry, fostering a secure environment for poker players while embracing the fundamental principles of poker – its social and recreational nature, alongside the competitive element that players cherish. With poker now officially classified as a mind sport by the International Mind Sports Association, standing shoulder to shoulder with chess, this legislation reinforces the integrity and intellectual depth of our game. It’s a promising future for the poker community, combining protection with the recognition of poker as a true sport of the mind.”
In terms of next steps, although the Bill has been signed into law, it is still subject to amendments and a commencement order which means some specifics remain unclear as does the timeline of when the new regime will formally take effect. With some alterations that recognise the uniqueness of poker and other forms of gambling, this Bill could still be fit for purpose.