James Browne (Wexford, Fianna Fail) | Oireachtas source

I am pleased to have this opportunity to update the Seanad on progress made by my Department to establish an independent gambling regulator for Ireland focused on public safety and well-being.As Senators will be aware, gambling reform has been in development for some time. The industry is large and complex. It is continuously evolving through technological development and many of our current arrangements are well outdated. Effective reform, therefore, requires fundamental and significant change.

To date, much good work and progress has already been made. My plans now are to advance the necessary legislation to drive forward this long sought reform. In doing so, I am determined to deliver on my Department's legislative programme to put in place a modern licensing and regulatory regime for the Irish gambling industry.

We have established a programme board in the Department of Justice to oversee the work and ensure that the different streams are progressed in parallel. The aim is to minimise the time between the enactment of the legislation and the date on which the regulator commences operations. We are targeting definitive milestones in the year ahead, and there is a clear pathway towards the gambling regulator being operational in early 2023.

I will now outline some of the key areas being considered. First and foremost, the new regulator will be an independent body established on a statutory footing. This reflects the recommendations in the 2019 report of the interdepartmental working group on future licensing and regulation of gambling.

The current regulatory approach, which is spread widely across a range of Departments and agencies, is fragmented. As such it facilitates an inconsistent regulatory environment and makes licensing of gambling activities cumbersome. It also limits the potential for revenue raising possibilities from licensing fees, duties and taxation. The new regulator will, when fully operational, assume all of the current gambling licensing and regulatory responsibilities as well as new and more extensive enforcement duties.

The current preparatory work involves a major updating of the proposals of the general scheme of the gambling control Bill published in 2013. It is envisaged that the draft general scheme will go to Government by the end of quarter 3 of 2021. The position of a CEO designate would also be advertised in quarter 3 this year with a finalised appointment scheduled for quarter 4. These will be important milestones. They will achieve objectives set out in my Department's statement of strategy and Justice Plan 2021, and build on the programme for Government's commitment to establish a gambling regulator. This commitment is very much directed towards the protection of the public and the gambling customer. The regulator will have a major role in this regard.

In developing the general scheme, we will consider possible measures to promote safer gambling. This may involve limitations on advertising and promotions, on bonus offers and so-called VIP schemes. When it is established, the regulator will have the necessary enforcement powers for licensing and powers to take action where individuals or operators fail to follow rules and regulations. Its key objectives will be as follows: to prevent gambling from being a source or support to crime; to ensure that gambling is conducted in a fair and open way for companies to make decisions in certainty; and to require the promotion of safe and responsible gambling, and to combat problem gambling.

Operators offering activities in whole or in part online will be subject to the licensing terms and conditions similar to other licensees with any necessary additions. The regulator, therefore, will cover online and in-person gambling and will also have the powers to regulate advertising, gambling websites and apps.

Gambling activity impacts society in Ireland in a number of ways. It is of significant economic impact. The interdepartmental working group report estimated the value of the Irish gambling market annually as being between €6 billion and €8 billion and employs upwards of 8,000 people. That said, it is important to strike a balance between the needs of business and the social implications of gambling.

Many people enjoy gambling in the context of a leisure activity but, unfortunately, some people fall into addictive gambling habits. While addiction treatment is predominately a matter for the relevant health authorities under the responsibility of the Health Service Executive and the Department of Health, I am mindful of how the gambling regulator may provide enhanced protection of consumers and vulnerable individuals.

In developing the Bill, we will consider possible measures to promote safer gambling. It is very likely that the legislation, similar to the position in many other states, will provide provisions banning gambling on credit. This is surely a very sensible provision and one that some of the gambling operators have voluntarily adopted.

A social fund will be established to address gambling addiction. It will be financed by the industry, in the form of levies on licensed operators. The social fund will support research, information campaigns and treatment by relevant health professionals. While I envisage that the regulator would manage the process of collection of the levy, it would appear preferable that any disbursements for health-related treatments benefit from the involvement of professionals in that regard.I very much share the view that our young people must be protected, insofar as possible, from engaging in gambling activities that may lead to problematic behaviour. The new gambling legislation being prepared will require an effective “know your customer” process. This is already a requirement in the context of the prevention of money laundering. The development of an effective self-exclusion process to assist and protect persons prone to problem gambling is also part of this work. Age verification will be a central part of that approach so as to prevent persons under 18 years of age from engaging in gambling. The Betting Act 1931 and the National Lottery Act 2013 already impose an 18-year limit while the Gaming and Lotteries (Amendment) Act 2019, commenced on 1 December 2020, also provides for a minimum age of 18 years for engaging in gaming and lottery activity and betting through the Tote.

I acknowledge that work on the establishment of a gambling regulator has been ongoing for a number of years. I share the concerns of those who wish that reform could be achieved quickly. The reality is that developing comprehensive modern licensing legislation, with effective terms and conditions and a new regulatory system with an effective operational structure, is a large and complex task. The industry itself and the engagement of gambling customers is constantly evolving, not least due to new technologies.

While the general scheme of a gambling control Bill was published in 2013, a considerable amount of work has been undertaken since then. The interdepartmental working group on future licensing and regulation of gambling, which I have already referred to, reported in 2019. A European Commission-funded consultancy report on the possible structure of a gambling regulator was provided in December 2019. These reports have provided valuable research and insights into the gambling industry, both domestically and worldwide.

The task now is to bring all these elements together within an operational framework. In order to achieve this, it is important that the regulator be established on a strong footing and adequately resourced to carry out this important task. It is not possible at this point to estimate the eventual annual costs associated with the establishment and operation of a gambling regulatory authority. These costs will be significantly influenced by the nature and extent of the regulatory tasks required in the context of the gambling activities to be licensed in the State. Appropriate staffing resources will be required to ensure compliance with licensing terms and conditions. Initial seed funding of €100,000 for the gambling regulatory authority was provided in budget 2020 and additional funding of €100,000 to support the establishment of the office of the gambling regulator is included in budget 2021.

Consultation is, of course, a particularly important aspect of informing and developing new legislation. In that respect, my Department organised a major seminar on the future licensing and regulation of gambling at Farmleigh House in May 2019. That seminar brought together a large number of interested persons and concerned stakeholders to discuss the report of the working group and to consider a range of critical issues and further developments.

As I have already stated, I hope to be in a position to publish a revised general scheme later this year. Following publication of that scheme, I expect there will be engagement with interested stakeholders. Information on how that engagement will be structured will be provided in due course. It is widely known and accepted in the industry and among stakeholders that reform of the gambling sector is on its way. My Department continues to welcome any submissions that stakeholders wish to make.

In conclusion, the Government, my officials and I are committed to driving reform in this important area. Significant progress has been made. Resources have been allocated and definitive milestones have been set to introduce comprehensive legislation and establish an operational office of the gambling regulator in early 2022. I acknowledge the importance of the co-operation of the Members of the Houses of the Oireachtas in bringing this legislation to enactment. I look forward to further engagement with all Senators.