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

The Bill seeks to address certain deficiencies in the conduct of gaming and lottery activities regulated under the Gaming and Lotteries Act 1956. Senators will agree that the provisions of the Act are, for the most part, outdated and require modernisation. The Bill proposes a number of interim reform measures for the licensing and regulation of gaming and lottery activities conducted under the 1956 Act, pending the development of comprehensive reforms in a revised gambling control Bill. Work on the comprehensive reforms is under way, although it will take a little time to bring my proposals to fruition. They will be based on the report of the interdepartmental working group on the future licensing and regulation of gambling. The report reviews the 2013 general scheme of the gambling control Bill and developments since and was approved by the Government on 20 March 2019. It is available on the website of the Department of Justice and Equality.

The amendments to the 1956 Gaming and Lotteries Act proposed in the Bill provide for significant modernisation of the provisions of the Act. They provide greater clarity and certainty for all promoters and participants involved, primarily in local fundraising efforts, to assure the best conduct in the promotion of gaming and lottery activities. We are all involved in our local sports clubs and community organisations to a greater or lesser extent and know how important they are to our local communities. I am sure Senators will appreciate the need to ensure worthwhile and necessary fundraising activity is supported, while also ensuring the permit and licensing process is as clear as possible for promoters.

Let me highlight the primary features of the Bill to amend the 1956 Act. It will modernise the permit and licensing regime for local gaming and lottery activities; standardise the age limit for participating in all activities under the Gaming and Lotteries Act and for betting with the tote at 18 years of age; assist in combating potential fraudulent behaviour; provide an improved application process, setting out more clearly the conditions required to be met by promoters of gaming and lottery activity, whether to a Garda superintendent for the issuance of a permit or to the Revenue Commissioners or the District Court for a licence; increase, for the first time since 1956, the now archaic stakes and prize limits for licensed gaming activities and machines; for the first time, set out a clear distribution ratio for how the proceeds are allocated in prizes, to beneficiaries and in promoter expenses for those lotteries held under District Court licence; and modernise the offences provisions of the 1956 Act.

Senators will be aware that the issue of the licensing of gaming machines and premises has been the subject of much media attention and many parliamentary questions in recent months. There have been contentions made about the issue of District Court certificates and Revenue Commissioners licences in areas where there appears to be no local authority resolution in place permitting gaming in accordance with sections 12 and 13 of the 1956 Act. As some matters are still before the courts, we should be careful in commenting on them. I point Senators to the recommendations contained in the report of the interdepartmental working group on the future licensing and regulation of gambling which would transfer all future responsibility to a new regulatory authority. Senators should also note that, increasingly, gaming as an activity is moving to an online environment and that traditional arcades are diminishing in importance.

I will now address the main provisions of the Bill. Section 1 states the principal Act is the Gaming and Lotteries Act 1956. Section 2 includes a number of amended or additional definitions in the principal Act to ensure greater clarity and reflect the modernisation of the Act.Section 3 replaces section 4 of the Gaming and Lotteries Act 1956 and provides that it is an offence to promote gaming without a permit or licence. Section 4 of the Bill inserts a new section 9A into the 1956 Act. This section sets out the application process for a permit for gaming for either charitable or philanthropic purposes or for the benefit of the promoter. This approach replaces the previous primarily location-specific approach to gaming at circuses, carnivals and in licensed premises contained in sections 6, 7 and 9 of the 1956 Act. The section further sets out the various conditions that will apply to gaming promoted under a permit issued in accordance with the Act by a Garda superintendent. The maximum stake and prize allowed is €10 and €3,000, respectively. The superintendent will be required to maintain a register of all gaming permits issued, revoked and suspended in his or her district.

Section 5 substitutes a new section 14 for that section of the 1956 Act. The amendment concerns essentially the updating of maximum allowable stake and prize amounts. These are increased from 3 cent and 50 cent to €10 and €750, respectively. There is a new regulation making power for the Minister for Justice and Equality to amend stake and prize amounts. The section further makes it an offence to accept a stake from a person under the age of 18 years.

Section 6 amends section 15 of the 1956 Act in a number of respects. The deletion of section 15(3) arises directly as a consequence of the repeal of the existing sections 6, 7 and 8 of the Act. The amendment of section 15(4) arises due to the amendment of the stakes and prize limits in section 14 and the regulation-making power contained therein, as well as the offence of allowing persons under 18 years of age to engage in gaming.

Section 7 inserts a new section 19A into the 1956 Act that will require the Revenue Commissioners to establish and maintain a register of gaming licences. This approach is derived from the analogous requirement on Revenue under section 18 of the Betting (Amendment) Act 2015.

Section 8 substitutes a new section 26 for that section contained in the 1956 Act. In accordance with the new section, it will be an offence to promote any form of lottery activity without a licence or permit having being issued in accordance with the Act.

Section 9 inserts a new section 26A into the 1956 Act. This section is based on the provision in Part B of the approved general scheme of the gambling control Bill 2013 for de minimislotteries not requiring a licence or permit, but promoted for the benefit of a charitable or philanthropic purpose and not for promoter benefit. Such a lottery would not require a permit or licence, the prize would be limited to €1,000, and no more than 1,500 tickets at a maximum price of €5 could be sold. This would be useful for those wishing to conduct a raffle on the night at local events.

Section 10 inserts a new section 27A into the 1956 Act. This section is based on the provision of the general scheme of the gambling control Bill 2013, which allows for the use of sales and marketing promotions which may involve a lottery element. Such activities will not be subject to a permit or licence, providing the conditionality in the section is satisfied, which includes no cost of purchase, and a total prize value of €2,500 is permitted.

Section 11 insects a new section 27B into the 1956 Act. This new section details the process involved in an application to a Garda superintendent for a lottery permit. The section further sets out the conditions and requirements involved following the issue of a lottery permit. The section maintains the current weekly prize fund amounts of €5,000 for lotteries held under a Garda permit. Each Garda superintendent will be required to maintain a register of all gaming permits issued, revoked and suspended in his or her district.

Section 12 substitutes section 28 of the 1956 Act with a new section. This section sets out the application process for a lottery licensed by the District Court. It is intended to ensure that the court is provided with sufficient notice and full details of the proposed lottery activity. The section further provides for the conditions that will apply to a lottery licensed by the District Court. The section maintains the current maximum prize amount of €30,000 under a District Court licence. The section does, however, make provision for a prize fund limit of €360,000 where a one-off annual lottery is promoted under a District Court licence. This provision is advanced from the 2013 general scheme of the gambling control Bill.

Section 13 amends section 30 of the 1956 Act, by relocating the penalty provisions contained therein to an amended section 44, as inserted by section 18 of this Bill. Section 14 substitutes section 33 of the 1956 Act with a new section concerning information to be contained on lottery tickets. The previous reference in section 33(1) of an exception for sections 23, 24 and 25 concerning private lotteries, lotteries at dances and concerts and at carnivals and other events, is deleted. However, provision is made for the exclusion of new sections 26A and 27A from the provisions of subsection (1).

Section 15 amends section 37 of the 1956 Act. The current seizure provision in section 37 of the 1956 Act relating to unlawful gaming instruments as defined in the Act is now extended to gaming machines. The seizure provision would also apply to instruments or machines not being operated in accordance with a licence in a revised subsection (1).

Section 16 amends section 41 of the 1956 Act, by relocating the penalty provisions contained therein to an amended section 44, as inserted by section 18 of this Bill. Section 17 amends section 42 of the 1956 Act by extending its provisions to include gaming machines in addition to gaming instruments.

Section 18 substitutes section 44 of the 1956 Act with a new offences section. Penalties for all offences, existing or new, under the 1956 Act, as amended, are located in one section. The possible sanctions that might be imposed on conviction are updated. Corporate bodies are also subject to the consolidated penalty provisions under section 44.

Section 19 substitutes section 46 of the 1956 Act with a new section. The section provides that a court may suspend or revoke a permit or licence upon conviction for an offence under the Act. An appeal to the Circuit Court is provided, with the decision of that court being final. There is also provision for notification to the Revenue Commissioners and An Garda Síochána of such decisions.

Section 20 amends section 47 of the 1956 Act by providing that the current forfeiture provision for gaming instruments be extended to provide also for forfeiture of gaming machines used in the commission of an offence under the Act or in the case of a conviction under section 4 of the 1956 Act. Section 21 amends section 48 of the 1956 Act by extending the provision for the court to order destruction of documents relating to a lottery to provide also for destruction of documents relating to a gaming activity. Section 22 amends section 50 of the 1956 Act and provides for the regulation making power with regard to the keeping of accounts and other records of permits for gaming and lotteries issued by the Garda to be vested now in the Minister for Justice and Equality rather than the Garda Commissioner, who will be consulted in the matter.

Section 23 inserts a new section 50A into the 1956 Act. A regulation-making power for the Minister for Justice and Equality was inserted into section 28A of the 1956 Act through section 51 of the National Lottery Act 2013. As the repeal of section 28A is proposed, this regulation-making power is restated in this section.

Section 24 details the sections of the 1956 Act proposed to be repealed by the Bill. The section also contains a transitional provision dealing with lottery permits in force at the time of the proposed repeal of section 27 of the 1956 Act.

Section 25 amends the Totalisator Act 1929 by inserting a new section 4A into that Act. This new section introduces for the first time an age limit for betting on the tote of 18 years. The penalties imposed under subsection (2) mirror those contained in the Betting Act 1931 for engaging in betting transactions with persons under the age of 18 years. Section 26 provides for the Short Title, collective citation and commencement of the Act.

In summary, the amendments I have proposed will have the effect of modernising and clarifying the provisions of the Gaming and Lotteries Act 1956. We all accept that, while it has served us well, this is an outdated law. I inform Senators that it is my intention to introduce a small number of amendments of a technical nature on Committee Stage. I appreciate that there may be questions why I have not gone further with my proposed amendments. I accept that the legislation in this area is outdated and that there is a need for a more radical overhaul than is proposed. I am confident that a revised gambling control Bill, when published, will address the deficiencies in the current gambling regulatory infrastructure. In the meantime, as always, I look forward to the debate on the current proposals with my colleagues in the Seanad. We are open to constructive suggestions and criticisms. I really mean that. I hope, with the co-operation of all sides, we can facilitate the swift passage of the Bill. I commend the Bill to the House.