Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

I move amendment No. 1:

In page 6, to delete lines 12 to 14.

The main changes as published are based on this group of amendments. I would like to set out the background to the amendments and what is proposed.

As Members will know, the Bill as published made it unlawful for a person, other than a licensed operator, to act as a bookmaker and the Minister for Justice was tasked with compliance regarding remote operators. The Bill provides that, where an unlicensed remote operator engages with punters in this jurisdiction, the Minister for justice will issue a notice to that individual or company to cease activity.

The Bill, as published, also provided that the Minister for justice may apply to the District Court for an order directing service providers, including financial institutions, advertisers and Internet service providers, not to provide services to specified unlicensed operators. In addition, it also provided for the revoking of a licence and the issue of similar court orders in these circumstances.

The amendments that are now before the House provide for the temporary assignment of responsibility for enforcement against unlicensed remote operators from the Minister for justice to the Revenue Commissioners - the key point, pending the establishment of the gambling regulator under the proposed gambling control legislation. This means that Revenue will be responsible for bringing summary prosecutions against unlicensed bookmakers and remote operators. In this context, Revenue will operate a new model for enforcing compliance by unlicensed remote operators. The model will operate as follows: where an unlicensed operator is accepting bets from within the State, Revenue will issue a notice to that operator of the need to become properly licensed or cease to provide betting services in the State; and should an operator contravene a requirement of this notice, the operator will have committed an offence and will be liable to penalties.

Given the practical considerations associated with prosecuting unlicensed operators outside the State, the compliance model will also enable Revenue to take effective action to prevent unlicensed operators carrying on business in the State. The Bill, as amended, prohibits Internet service providers, advertisers or persons promoting products, from providing services in the State to unlicensed remote operators. Revenue may issue compliance notices. The Internet service providers may appeal a compliance notice to the District Court which will either affirm or direct Revenue to withdraw the notice. A person who fails to comply with such a notice by the specified date shall be guilty of an offence. It is proposed to bring forward an amendment on Report Stage, or if this does not prove possible, when the Bill is in the Seanad to specify the penalties that will apply.

Because of the complex way the international debit and credit card payment system works, the most effective way of preventing unlicensed operators receiving payment from consumers in the State is to work with the international payment service industry. In an approach similar to that taken in the United Kingdom, Revenue proposes to enter into voluntary arrangements under which the international payment service providers will take action to prevent operators using their payment systems to carry out illegal betting. The Irish Banking Federation and the Irish payment service operators have indicated their commitment, in principle, to concluding an arrangement with Revenue for this purpose.

Action to prevent Internet access by Irish consumer to unlicensed operators and to prevent unlicensed operators using credit card payment systems for accepting payment provide effective tools for enforcing compliance by remote operators carrying on business in the State. We believe that the main operators in the Irish market will comply with the law and will welcome the opportunity to become licensed so that they can continue to do business here. Operators who do not wish to become licensed in Ireland can voluntarily block communications and transactions with Irish consumers and most are expected to do so to avoid Revenue enforcement action, which would also risk reputational damage to the operator in the eyes of gambling regulators elsewhere. Illicit operators on the margins of the market are unlikely to attract a high level of business from Irish consumers in view of the perceived risk that they will fail to pay out.

The compliance model proposed provides the most practical and effective approach given the inherent difficulties in dealing with persons operating largely outside the State. I commend the amendments to the House.