Sharon Keogan (Independent) | Oireachtas source

The Gambling Regulation Bill 2022 seeks to establish the gambling regulatory authority of Ireland for the purpose of licensing and regulating betting, gaming, certain lotteries and the sale and supply of products and services relating to gambling. When it comes to extending powers of regulation in the private sector, as lawmakers, it is incumbent on us to be conservative in the constraints that we put on any industry.

Problem gambling is, of course, a great concern. I strongly support the intent of the Bill to target activities that encourage problem gambling, particularly in the Internet age, and to protect vulnerable people and children from certain tactics being used by the gaming industry to target them. The Bill addresses concerns around problem gambling, which is certainly an important social issue to address, but we must seriously consider the concerns of the relevant stakeholders in the relevant industries and charities that would be directly impacted here too.

The members of the Charities Institute Ireland, the Federation of Irish Sport and the GAA strongly support the intention of the Gambling Regulation Bill to establish a gambling regulatory authority with powers to control the commercial gambling industry. However, these groups are highly concerned with some apparent unintended consequences of the Bill in its current form and contacted me and no doubt many other Members of the Oireachtas with their concerns. As currently drafted, the Bill creates a watershed by banning any advertising or gambling activities between 5.30 a.m. and 9 p.m., seven days a week. Fundraising campaigns that include raffles and draws are defined as gambling under law. This means that the local GAA raffle, for example, would likely fall under this provision as it is currently drafted in the Bill. Community fundraising of any kind is the lifeblood of institutions such as the GAA and local sporting and charitable groups. The effects of this law could have a catastrophic effect if we do not consider these concerns. Members of the Charities Institute Ireland, the Federation of Irish Sport and the GAA depend on this fundraising to provide essential services and community sports. On their behalf, I have raised their request to be exempted from this advertising watershed since the Bill was first published.Community fundraising is in no way linked to problem gambling so I return to my earlier point that we must be cautious when it comes to extending regulations of any kind to any industry. The problems this law could cause for charities and community groups are clear. We therefore must consider either specific exemptions or removing some constraints in their entirety. The Charities Regulatory Authority already places very significant compliance and regulatory burdens on charities. An additional regulator overseeing these types of fundraising will only harm a wholly unrelated sector, the charities sector. The unintended consequences of this Bill will result in significant financial loss for charities should they be regulated in the same way as commercial gambling companies. Many charities could never meet the costs associated with the financial and legal obligations this Bill would impose on them.

Ronald McDonald House is an example of a charity that is already regulated in respect of financial oversight by the Charities Regulatory Authority and other State body funders. This charity has asked that registered charities and accredited sports clubs be specifically excluded from the proposed ban on advertising between 5.30 a.m. and 9 p.m. Section 144 of the Bill as passed by the Dáil makes an exemption for the "relevant gambling activity for a charitable or philanthropic purpose where the maximum winnings for the activity do not exceed €10,000." I oppose this limit because a charity raffling a car or a GAA fundraiser, which are popular and successful means of fundraising, would be unduly impinged upon. The legislation as currently drafted will mean a loss of approximately €200,000 for Ronald McDonald House Ireland. It costs the charity €800,000 every year to run Ronald McDonald House and so a loss of this size highlights the detrimental impact this Bill would have on its mission and, most importantly, on the families it supports. This potential loss will also put further strain on several Departments as there will be an increase in the level of funding requests from charities and sporting organisations.

The concerns of gambling firms regarding these restrictions are particularly crucial. Both Racing TV and Sky Sports Racing warn that the Bill would make it unviable for them to broadcast in Ireland should the proposed ban between 5.30 a.m. and 9 p.m. become law. In July, prior to the 2024 budget, the tax strategy group, which is chaired by the Department of Finance, released a report suggesting a 0.5% hike in betting duty from the current 2%. In addition, bookmakers are also to be forced to pay a mandatory annual contribution to the social impact fund, yet another State-imposed cost. We cannot impose such costs lightly. These proposals were met with consternation from the industry, just four years after betting duty was doubled from 1% to 2%, a rise that resulted in 100 shop closures and 600 job losses according to the Irish Bookmakers Association. We must look beyond the social good we are trying to achieve to the potential social harm of job losses and business closures while bookmakers remain a stable business in villages, towns and cities.

This Bill creates additional burdens through regulatory and compliance measures that will lead to a downgrade in interest in horse racing and betting. Bookmakers, especially small independent bookmakers, will not want to get involved in a sport that is overburdened with governance, regulation and restrictions on how and when live racing can be viewed, for example. This will lead to a reduction in betting activity and, as a consequence, the yield from betting duty will collapse. We cannot underestimate the impact this will have on small and medium-sized enterprises in this area. It could have serious knock-on effects on struggling racecourses. I have received correspondence from people in the sector who point to similar governance measures in the UK as evidence of the UK Gambling Commission impacting on racing. That sector is in turmoil as a result of the commission's activities in restricting punters.

I have to stress that I have an interest in this matter. I am a director of Bellewstown Racecourse, which is an unpaid role. The new Gambling Regulation Bill will have serious consequences for horse racing across the north east. Many of its new regulations will limit, curtail, restrict and impact ordinary punters who do not have gambling problems. Owners and syndicates support trainers and racecourses with their runners and any restrictions on betting would be disastrous for racing in the north east.We have five racecourses in the north east – Fairyhouse, Navan, Dundalk, Bellewstown and Laytown – and they host 90 race meetings in the year. Racing festivals in the north east are very popular with locals and visitors alike. There are 86 trainers based in the north east and they employ 2,500 staff. The north-east breeders and point-to-point clubs are the backbone of the racing industry, and concerns have been expressed by these about the new gambling Bill.

Up to 50 local independent bookmakers in the north east who operate shops and racecourse pitches will be impacted by the new licensing regulation. Tattersalls Ireland in Fairyhouse is the main venue for horse sales in the north east. It generated €62 million from the sale of 2,500 thousand horses according to the most recent figures. Any dilution in the appeal of horse racing will impact these sales.

The north east is steeped in national hunt history. The legendary Arkle was trained outside Ashbourne, in my area. Two recent winners of the Aintree Grand National, namely Tiger Roll, the winner in 2018 and 2019, and Silver Birch, which won in 2007, were trained by Meath trainer Gordon Elliott. Gavin Cromwell, from Skreen in my area, trained the winner of the Champion Hurdle at Cheltenham in 2019. Therefore, horse racing is a vital industry across the north east. We call on the Government not to act in a way that will harm the industry.

We all care about people impacted by gambling and welcome measures that will safeguard them, but this must not be done at the expense of an industry so vital to employment and tourism across the north east and the rest of the country and that creates so much enjoyment for people, the vast majority of whom bet in moderation and go racing. We must be cautious in proceeding with this Bill but I certainly welcome it and look forward to engaging in the debate on the remaining Stages.