Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

I am grateful, as is the Minister for Justice, Equality and Law Reform who regrets he cannot be here in person, for the opportunity to outline to Senators the position in respect of fixed odds betting terminals, commonly known as FOBTs. Senators may well be aware of the Minister's opposition to such machines from statements he has made in the other House on many occasions. The Minister has not changed his view on these machines.

I understand that fixed odds betting terminals are software-driven, often touch screen terminals, through which users can place stakes on a variety of gambling products and services. The outcome of a stake is driven by a random number generator operated by an independent third party and located remotely.

I am advised that FOBTs, were they to be introduced in bookmakers' premises in the current regulatory environment, would be illegal as they would be classified as gaming machines. The Gaming and Lotteries Act 1956, as amended, prohibits gaming except in limited circumstances, for example, in a licensed amusement arcade, at a circus or travelling show or at a carnival; in such circumstances it is subject to limitations. Furthermore, the Betting Act 1931, which falls to the responsibility of my colleague, the Minister for Finance, severely restricts what business, other than the business of bookmaking, can take place in a licensed betting office.

We do not have data on gambling in this jurisdiction. However, the most recent British gambling prevalence survey 2007 commissioned by the UK Gambling Commission found that while those gambling on FOBTs represented only 3% of overall gambling, the prevalence of problem gambling in those who used FOBTs was 11.2%. The message the Minister takes from this finding is to proceed with caution in respect of FOBTs.

The report, Regulating Gaming in Ireland, deals comprehensively with many aspects of gaming and gambling, including FOBTs. Senators will be aware that the report regarded FOBTs as gaming instruments and, therefore, as inappropriate instruments to be located in licensed bookmakers' premises on the basis that the traditional distinction between gaming and betting should be maintained. The Minister published the report on 10 July 2008 and, among other things, arranged for its circulation to the Houses.

As Senators are aware, and arising from the publication of Regulating Gaming in Ireland, the Minister has initiated a wide-ranging review. The objective of the review is to put in place a modern, responsive code that recognises that people gamble and enjoy gambling and at the same time acknowledges there are inherent dangers involved that need to be addressed, not least problem gambling. Three important considerations which represent the hallmark of most well-regulated gambling codes inform the review. These are that young people and the vulnerable are protected, that gambling should in all respects be fairly and openly conducted and that gambling is kept free of crime.

Through a public information notice in daily newspapers and on the Department's website, the casino gaming control section of the Department of Justice, Equality and Law Reform invited submissions from interested parties and members of the public. The closing date for the receipt of submissions was 30 September 2009. I am informed that more than 60 submissions have been received, with a number of interested parties seeking a time extension.

Senators will appreciate that developing a revised gaming code capable of generating broad public support and which provides the best possible protection of the vulnerable is a complex task. Notwithstanding this, the Minister has instructed the casino gaming control section of his Department to make every effort to develop policy options for a new gambling architecture, including proposals for a draft Bill on the subject, with all possible expedition.

Remote gambling, that is, gambling through the Internet, interactive television and mobile phones, is a huge growth industry. It is the place to which traditional betting and gambling in general is migrating, thereby depriving states of tax and other revenues. Part of the challenge of the review is to establish how best to capture a portion of that industry and at the same time attack the threats posed by this form of gambling. It is certain that it is only through regulation that the downsides of remote gambling will be addressed.

The Minister recognises, therefore, that technological advances over recent years have changed the face of the world in which we live and that consequently the various forms of gambling cannot be immune to such technological advances. However, foremost in the Minister's mind is the protection of young people and the vulnerable. Ultimately, it will be for Government to agree the policy approach to be legislated for in this area.