Oireachtas Joint and Select Committees

Wednesday, 9 October 2013

Joint Oireachtas Committee on Justice, Defence and Equality

Heads of the Gambling Control Bill 2013: Discussion

10:35 am

Mr. Barry Galvin:

I thank the committee for the invitation to appear today. I will give a brief overview of the Licensed Gaming Association of Ireland's observations and proposals on the Bill.
The members of the Licensed Gaming Association of Ireland are all holders of current gaming licences and court certificates. They all operate in areas where Part 3 of the Gaming and Lotteries Act 1956 has been adopted. My firm has represented clients in the sector for many years. Recently it has been involved in substantial cases where the Gaming and Lotteries Act 1956 was an issue. In 2012 there were 57 licensed premises throughout Ireland, which were mainly located in holiday, leisure and seaside locations. In most cases the businesses have been family-run for several generations and are part of the commercial fabric of these locations. Practically all of the businesses comprise the same traditional model of two segregated business offerings. One is a family amusement area that is open to children and adults alike while the other is a gaming area that is restricted to over 18s. The committee should note that one does not get a gaming licence unless one supplies amusements in the same building, so that is a matter of legislation.

The family amusement area machines can be split into two main categories. First, there are pure amusement machines such as video shooting games, car simulator and video games, pool, air hockey, table soccer and pinball. Second, there are amusements with prize machines such as prize cranes, skill prize games, quiz prize games and redemption machines. All of the members will have seen these amusements and will be familiar with them. In the gaming area the machines are a combination of traditional and electronic slot machines and automatic table games.

The present regime in Ireland operates under the 1956 Act, as amended. In order to receive a gaming licence operators must provide a court certificate on an annual basis and the Revenue Commissioners issues the licence. The requirements are as follows: confirm correct zoning and planning for the operation; apply, receive and adhere to opening and closing hours; confirm that an annual inspection by a fire officer has been carried out - the same as a public house - and confirm compliance to the court; provide the court with a complete listing of the number and type of machines available for play; hold a tax clearance certificate; pay €505 per machine per annum, plus a premises licence of €630 for each premises; provide amusement facilities in addition to gaming; provide confirmation by the Garda Síochána that a licence has been operated in the previous 12 months in the correct manner; provide satisfaction to the general public that the licence has been operated in the correct manner in the previous 12 months; and place advertisements of the application in the newspapers circulated in the area to allow public objections.

The association has compiled a detailed submission that addresses particular heads of the Bill and I shall restate some of them. The first one is on security of tenure. The Bill envisages examining the situation and makes no provision for the continuation of existing long-standing businesses. The LGAI views the initiative as entirely inappropriate because it does not take into consideration past and present participation and investment of the licensed proprietors of gaming or amusement arcades. The Bill opens up a number of uncertain possibilities, in many cases without the possibility of participation or objective challenge. Some parts of the legislation might well be a disproportionate interference with the right to work on private property. We propose that there should be recognition of the existing licensed proprietors and their investment in the business.

We submit that appropriate arrangements should be provided to ensure a smooth transition to the new licensing regime. Some of the gaming machines around the country have been licensed for many years. They are a source of income and employment for a large number of people. We maintain that constitutional and EU-protected proprietary rights have been established that cannot be taken away except in certain circumstances that are in the public interest and on payment of appropriate compensation.

As I have already explained, under the existing Act one is obliged by law to provide amusement. In other words, if one is supplying gaming one must also provide amusement machines. The new Act proposes to exclude amusements from a gaming premises, a measure opposed by the LGAI. In past decades it has been a legal requirement for the granting of a gaming licence that amusement machines be operated on the same premises as gaming. They have been and are traditionally separated from each other, as age restriction is relevant. For the reasons set out in section 5 of the submission, it is proposed that existing and future gaming licence holders be obliged to operate a supervised access controlled doorway to separate amusement and gaming areas. Also, any new arrangements would be implemented for future premises as part of the planning process.

With regard to opening hours, we submit that the proposed times are too restrictive. The current operating times for a 2A licence are from 10 a.m. to 2 a.m. We suggest that regime should continue for existing licence holders. The times are already licensed by the court, with strict examination and regulation. The times are adhered to by the licensed operators and the business model has been scaled to these times in recent decades. It is also important to note that the critical timeframe of 11 p.m. to 2 a.m., especially on weekend nights, is pivotal for the commercial viability of the industry. Additionally, the fact that the main commercial competition comes from the operation of the same machines online 24 hours a day should be taken into consideration. We also propose that the closing time for a 2B licence should be 10.30 p.m. all year round, with the additional facility to grant a seasonal extension to allow for festivals and other activities associated with holiday, leisure or seaside locations.

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