Ms Susannah Gill:

I am head of public affairs at Betfair which welcomes the opportunity to present evidence to the joint committee. In many ways, Betfair is a perfect example of how technology can and has overtaken existing regulation and, therefore, why the gambling control Bill is timely legislation that is being welcomed by the majority of stakeholders. As many members probably know, Betfair is purely an online betting operator that was created on the back of the wave of innovations since the invention of the Internet. It has made a long-standing commitment to Ireland and seeks to be a constructive partner to ensure the regulatory process in Ireland benefits all stakeholders, including the end consumer - punters, the Government and legitimate betting operators.

Since its launch in 1999, Betfair has grown to become a FTSE 250 company which employs 1,700 people worldwide. In Ireland the company has made significant long-term investment, with 100 jobs in its Dublin operations office and two data centres, which equate to a €30 million investment. Based on salaries, taxes paid and contracts with local suppliers, Betfair makes an annual contribution of approximately €18 million to the economy.

What makes Betfair different from traditional operators is its betting exchange model which uses technology similar to a stock exchange to allow it to offset its risk perfectly by exactly matching sports betting supply and demand in a way not previously done by traditional bookmakers.

Betfair now also operates a sports book product, offering traditional fixed odds betting like most of its competitors. The Internet has allowed the gambling industry to evolve significantly. Consumers now have access to a wide range of products and where price comparison has never been quicker or easier, this has driven up competition in the sector enormously. It is, therefore, right that the Government is overhauling existing legislation to establish a regulatory regime that will incorporate changes in the sector and the emergence of remote gambling for the first time. This will help to ensure any company taking a bet from an Irish resident, be it on the Internet via laptop or mobile device or over the telephone, meets the regulatory standards set by the Government. As with all such legislative proposals, there will need to be engagement between the Department for Justice and Equality, operators and other stakeholders to get the details of the legislation correct and viable for the years ahead as technology continues to evolve. Betfair is willingly engaging in this process and will help, wherever possible.

Members will have received our submission and we are happy to go through the matters raised in further detail. Betfair has restricted its comments on the Bill to the issues that are relevant to its business as an exclusively online gambling operator. Its primary observation is in the area of relevant entities and the licensing process. In a regulated gambling regime clarity is needed regarding which organisations are required to register and which individuals need to be listed on the licence application with the national regulator, in this case the Office of Gambling Control Ireland, OGCI. Betfair has been through licensing processes in many jurisdictions and our experience has led to our view that in all cases the number should be kept to a realistic minimum to avoid unnecessary burdens and costs on operators and the OCGI. For example, it is assumed that if the person listed as a nominated officer leaves the employment of a licensed operator, this will need to be notified to the OGCI and a new individual instated in this position. With potentially hundreds of licensed companies, this has the potential to be burdensome for all stakeholders.

Betfair’s other comments relate to several other areas. With regard to licence application costs, it is essential that the costs and logistics of applying for a licence are provided upfront for operators in order that they can plan accordingly.

On the level of probity of licence holders, Betfair suggests the Department seek to adopt a similar approach to the United Kingdom with regard to the information it requires from licence holders, as set out in head 25. The UK Gambling Commission provides clear information on what is expected of companies wanting to become licensed, including a detailed operating licence application form for companies and a personal declaration form for relevant individuals within a company.

With the establishment of the OGCI, operators will expect to see secondary regulations, often called technical guidelines or standards, which will outline exactly how the licensing process will work, including the requirements for product testing prior to licensing. The Government should seek to work with the industry through formal consultation in order that operators have the chance to inform and share their experiences of regulations and processes in other countries. Final regulations should be published well in advance, a minimum of six months, before any new licensing regime becomes active in order to ensure operators wanting to apply for a licence have time to review and submit applications.

Betfair supports the introduction of the self-exclusion register under head 71 within a regulated gambling market in Ireland. The register would be most effective if it was shared with all licensed operators and it was made a licensing condition that operators could not accept new customers whose names were on the register. This would ensure an individual who had self-excluded from one operator could not open an account with another operator while his or her name remained on the self-exclusion register.

Betfair is also supportive of the establishment of a social fund to achieve the purposes of the fund set out in head 78. There is a need for clarity as to how the social fund will operate and at what level contributions from operators will be set. The establishment of a social fund could potentially mirror the operational structure of the Responsible Gambling Trust, RGT, in Great Britain. The gambling industry voluntarily funds the RGT which is made up of experts with a background in helping people with addiction, the gambling industry and the government. Betfair seeks to be a responsible operator and integrate corporate responsibility into its business practices wherever it has an office.

I am happy to take questions from members or supply further details which may be helpful to their work.