David Stanton (Cork East, Fine Gael) | Oireachtas source

I thank Fianna Fáil colleagues for giving us all the opportunity to participate in the debate on this significant issue. The Government is not opposing the Private Member's Bill sponsored by Deputies O’Callaghan, Jack Chambers and Rabbitte. However, we are debating a Government general scheme of a gambling control Bill, published in 2013, which the proposers have essentially replicated. There is nothing wrong with that. The guiding principle of the 2013 scheme is that only gambling activities which are licensed and regulated would be lawful. Only the regulatory body might issue licences for such activities. The licensing principles would apply equally to both land-based services, such as bookmakers’ premises, gaming arcades, etc., and remote services online, on mobile devices and so forth. Applicants for gambling licenses would be required to supply detailed information, including evidence of financial viability, criminal records and staff training. The Garda Síochána and local authorities would have statutory rights to comment on and to oppose where necessary any application for a licence for reasons within their competences.

The regulation of the national lottery was excluded from the scope of the 2013 Government scheme and is at present a matter for the Minister for Public Expenditure and Reform. I note what colleagues have said about the national lottery. This debate provides me with the opportunity to report to the Dáil on the work under way to review and enhance the original Government proposals, as set down in the 2013 scheme, and to take account of technological and other developments that have occurred in the meantime.

As colleagues have said, this is a fast-moving area. The development of modern, fit-for-purpose, gambling legislation is necessary and is a priority for Government. The objective must be to ensure the proper licensing and regulation of the many varied forms of gambling now available in the State, including traditional betting on horse and dog racing, gaming machines, casinos, lotteries and online gambling, including the increasingly popular virtual and fantasy-type activities. We need a modern regulatory approach to a complex multi-billion euro industry that operates increasingly on a global scale. This revised approach will enhance consumer protection in all forms of gambling, increase the protection of vulnerable persons and potentially increase Exchequer revenue from the gambling industry.

I have been actively engaged in efforts to develop and bring forward revised proposals in this complex and evolving area of policy based on the 2013 Government scheme. I acknowledge comments attributed to me by colleagues across the House. The establishment of a dedicated gambling policy division in the Department of Justice and Equality in January 2017 has facilitated this review. The division also asked for submissions from stakeholders and members of the public setting out their ideas for better regulation. Of significant importance is that the Government, on 10 January last, approved my proposal to review, modernise and revise the 2013 general scheme of the gambling control Bill. Many changes have taken place since 2013. The critical changes approved were to establish an independent regulatory authority for the gambling industry, rationalise the licensing approach to gambling activities, clarify the provisions concerning the licensing of gaming machines, and review all provisions to determine if they remained fit for purpose.

The key element of the Government decision of 10 January 2018 is the establishment of a new gambling regulatory authority as an independent statutory body under the auspices of the Department of Justice and Equality. This approach to independent regulation is, I believe, critical for the development of modern gambling legislation. It mirrors the situation in most EU member states and would bring Ireland into line with best international practice. An independent regulator would offer assurance that decision-making would be free from any potentially undue influence. I should also point out to Deputies that effective modern licensing, regulation and enforcement of the gambling industry will require significant additional resources, primarily for the operation of the new regulatory authority. Similar authorities in other EU member states involve significant staff numbers and IT provision. However, there is increased potential revenue for the Exchequer.

The Government has agreed that there may be a need for the further development of an appropriate licensing, monitoring and enforcement regime for land-based gaming machines in casinos or elsewhere that may be played for monetary reward. The new authority would have the responsibility to license these machines and licensing terms and conditions would be developed with regard to locations, numbers, stakes, prize amounts, etc. Licensing conditions must be clear, fair, legitimate and transparent to all. It would not be realistic to seek to enforce prohibition on certain physical gaming machines over other types of machine. This would risk further migration to online versions, which are widely available on most operators' websites and may be difficult to monitor effectively. Any discriminatory licensing approaches to gaming machines that differ little, if at all, might attract legal challenge by operators or the regulatory attention of the European Commission. In this regard, I am investigating whether only one standard type of machine, capable of being monitored interactively, might be the ultimate solution to the reported proliferation of different types of machines, some of which are very old.

To progress the review and updating of the general scheme in all necessary aspects, a working group was established, comprising all key stakeholder Departments, relevant offices and the Office of the Attorney General, which I chair. This group had its first meeting in February 2018. It has met on a number of occasions to date and will continue to meet.

This work will assist in identifying new or emerging legislative and policy issues not currently represented in the original general scheme and which may need to be addressed in new legislation. It is my expectation that the working group will submit a final report to Government in mid to late 2018.

The 2013 scheme contained provisions with regard to regulating advertising, promotions, special offers and sponsorship of events by gambling operators. In particular, activities aimed at those under 18 years of age or vulnerable persons were to be prevented. These provisions need to be revisited in the light of developments, technological and otherwise, since 2013. Gambling advertising and promotions are now increasingly individually targeted using new technology. Potential restrictions on gambling advertising and sponsorship must be carefully considered, targeted and effective. Sectors of Irish sporting activity that depend heavily on advertising and sponsorship risk being negatively impacted by very restrictive measures. For example, advertising by gambling companies is very much prevalent in TV coverage of horse racing from Irish racecourses and is a significant source of income that is not easily replaced. There is significant sponsorship of sporting events by gambling companies, for example, UK Premiership football, major races in both the UK and Ireland and the Irish soccer team's home games. The national lottery is a very prominent and significant prominent gambling advertiser and sponsor.

Our legislation must include measures to deal with aggressive promotional offers by gambling operators to entice customers to their product. However, I am anxious to ensure that unintended negative consequences do not arise in this regard and I must caution against unrealistic expectations as to what can be achieved. Imposing restrictions on out-of-State broadcasters or sporting events broadcast from abroad would be difficult, as would seeking to restrict advertising online.

Another area that will require our further attention is what conditions should attach to the licensing of casinos. Ireland will be the last EU member state to introduce formal legislation regulating casinos. In this regard, consideration of the issue of licensing casinos cannot be limited solely to land-based casinos. Many casino games are now available for play online. Technological advances now permit players to bet in virtual reality casinos online without the need to leave their homes.

I am sure that much of this evening's discussion will rightly centre on the issue of problem gambling and gambling addiction. A modem and effectively regulated gambling environment will ensure to the greatest extent possible that gambling will be an entertaining activity for the majority of those who take part in it. We must ensure that it will provide enhanced consumer protection for players while limiting the harmful effects on those who may be susceptible to addiction or other such problems and protecting young people. The safeguard proposals in the 2013 scheme will require development and continuous monitoring thereafter. In this context, the new independent regulatory authority will be the critical factor.

There are no definitive statistics available that indicate the extent of gambling addiction in Ireland. The Department of Justice and Equality is awaiting the publication of information from the 2014-15 national advisory committee on drugs and alcohol drug and gambling prevalence survey that contained a number of questions on gambling habits and prevalence. The Department will support a further, more detailed study to be conducted by the Health Research Board from 2018 to 2019. These studies will contribute to our policy debate and the development of appropriate measures to prevent and to treat gambling addiction.

Our focus must be to develop the best possible regulatory measures for the gambling industry in respect of vulnerable persons. These would include age restrictions, staff training, self-exclusion measures and controls on advertising, promotions and sponsorship. I envisage the regulatory authority undertaking public education and awareness-raising programmes to promote socially responsible gambling and assist in counteracting the ill effects for players, their families and society of irresponsible or problem gambling. A key potential of new effective regulation is that it will permit the establishment and operation of a social fund supported by industry levies. Such a fund will support those professional and expert organisations involved in addiction treatment.

As well as being concerned with protecting vulnerable persons at risk of addiction, I am also conscious from representations made to my Department that there must be enhanced consumer protection measures for persons engaging in gambling. I envisage these including ensuring licensed operators have adequate financial resources and publish clear terms and conditions of business and a new complaints and compensation procedure. A critical change proposed in 2013 is a revision of the centuries old public and statutory policy to make gambling wagers or bets contractually enforceable concerning licensed gambling activities. This has occurred in the UK and elsewhere but only for licensed gambling activities.

I would be happy to receive realistic proposals from Deputies that would contribute to the updating of the 2013 general scheme and bring about as soon as possible the development of modern and effective legislation. New modern gambling legislation, in conjunction with independent regulation, offers the best route to enhanced consumer protection, to increased Exchequer revenue from the industry and to the development of a full range of treatment and mediation methods to address problem gambling by those agencies competent in this area.

See this speech in context