Dáil debates

Thursday, 19 February 2015

Ceisteanna - Questions - Priority Questions

Gambling Legislation

10:00 am

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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4. To ask the Minister for Justice and Equality her plans to adequately regulate gaming and casinos venues; and if she will make a statement on the matter. [7169/15]

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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The gambling control Bill proposed by the Minister's predecessor seems to have dropped away in priority and significance. In the hearings of the Oireachtas Joint Committee on Justice, Defence and Equality during 2013 it became clear from the comments of people such as Mr. Barry Galvin, former head of the Criminal Assets Bureau, and representatives of the Licensed Gaming Association of Ireland that significant revenue losses were accruing to the State because of the unregulated nature of many gaming venues. What are the Minister's plans in this regard?

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The Deputy is aware that there are detailed proposals in the general scheme of the gambling control Bill for the licensing of casinos in Ireland for the first time. This is the first Government to bring forward legislative proposals for changes in this area. My colleague, the Minister for Finance, is bringing forward the Betting (Amendment) Bill 2013 which was debated in the Seanad yesterday. It will extend the licensing regime to cover the operations of remote bookmakers and betting intermediaries. The activities of such operators can then be taxed.

There is no provision in Irish law for the licensing of casinos. Some 47 private member gaming clubs are registered with the Department under the provisions of section 109 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended. The Department's anti-money laundering compliance unit conducts inspections of these premises to assess compliance with the 2010 Act. It is understood some of these clubs offer casino-type games.

Under the proposals set out, the Minister for Justice and Equality will assume a regulatory role for all forms of gambling, with the exception of the national lottery, on enactment of the Bill. As its Title indicates, the aim of the Bill is to establish a system within which gambling can take place openly, fairly and in accordance with terms and conditions, in other words, within a controlled environment. The Bill will operate on the basis that all gambling is illegal, unless it is of a type permitted by law and even if it is permitted, it may be carried on only if it is licensed and in compliance with terms and conditions attached to the licence. The general scheme is with the Office of the Parliamentary Counsel awaiting drafting. I cannot indicate precisely at this point when the Bill will be published. I take the Deputy's point, however, that this area needs to be regulated.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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The figures brought to my attention and that of the Minister are staggering. It is estimated that there are up to 19,000 unlicensed gaming machines in the State at any one point in time and that this results in a loss of licensed revenue to the State of almost €10 million per annum. When one factors in that the average profit per gaming machine is in the region of €19,200 per annum, this means a turnover of approximately €364 million is potentially untaxed. It is a huge area in which there is a loss of revenue to the Exchequer. Proposals have been made, of which I know the Minister is aware, and given to the Minister for Finance for the introduction of a number of interim measures in advance of publication of the gambling control Bill. Will the Minister consider introducing them, given the scale of the loss of revenue to the Exchequer?

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The legislation is seriously out of date, about which there is no question. The betting laws date from 1931, while those on gambling date from 1956. Increasingly, gambling is carried on by remote means and is not regulated. I agree with the Deputy that enforcement has suffered as authorities grapple with outdated laws and constant technological changes. A large and growing section of the market is unregulated, with attendant risks to consumers and a loss to the Exchequer. That is why we need new legislation and the Bill is with the Office of the Parliamentary Counsel for drafting. The Betting (Amendment) Bill which is going through the Houses deals with certain elements of betting. We need more comprehensive legislation to deal with the points made by the Deputy. Amending other legislation will not get us very far. We need a comprehensive scheme, which is the better approach. The Deputy is familiar with some of the provisions which will be included in the heads of the Bill.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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The Betting (Amendment) Bill being progressed by the Minister for Finance, Deputy Michael Noonan, will not address the issue I am raising. I want to get a sense from the Minister when the gaming Bill will become a priority for the Government. I know that she recently met Mr. Barry Galvin, the former head of the Criminal Assets Bureau and the legal representative of the Licensed Gaming Association of Ireland. He has a proven track record and come up with a sensible interim proposal which would not require the drafting of a big Bill to address the shortfall in revenue accruing to the Exchequer. A staggering number of unlicensed gaming machines - 19,000 - are being operated throughout the State, resulting in a loss of revenue of almost €10 million and producing a turnover of up to €364 million. The numbers are truly staggering. When one considers medical card issues, local authorities and people who are looking for grants, the State needs this revenue. Mr. Galvin has made sensible proposals which should be progressed.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The proposals made by Mr. Galvin, an expert in the area, will certainly be examined. I will take serious note of his suggestions. The Department is working on the legislation which is with the Office of the Parliamentary Counsel and on which I want to make progress as quickly as possible. It must, howver, take its place among the Department's priorities, but I understand the urgency in regulating the industry to protect vulnerable people and the revenue being missed by the Exchequer. I agree with the Deputy that it is important legislation which I will progress as quickly as possible. I will meet the various stakeholders to discuss it.