Eamon Ryan (Dublin South, Green Party)
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Question 229: To ask the Minister for Finance the measures he intends to take to ensure the industry is properly regulated in view of the recent growth in spread-betting here. [7996/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Firms that offer spread-betting services, whether in respect of sports events or financial services, are required to possess a bookmaker's licence, which is issued by the Revenue Commissioners.

To obtain a bookmaker's licence a person must publish a notice in the press of his or her intention to carry on the business of bookmaking at a particular premises and apply to the local superintendent of the Garda Síochána for a certificate of personal fitness. The application must be signed by two Peace Commissioners. The superintendent either issues a certificate or refuses the application, in which latter case the applicant can appeal to the District Court. Having obtained a certificate of personal fitness, the person then applies to the Revenue Commissioners for a licence. From then on the primary focus of Revenue Commissioners' enforcement action in relation to bookmaking is to counteract evasion of betting duty.

As regards spread betting on financial markets, the markets in financial instruments directive, Directive 2004/39/EC of the European Parliament and the Council, is due to be transposed into the national laws of each member state by 31 January 2007. Essentially, the directive relates to how financial instruments are traded and sets out what constitutes a financial instrument. Among the items listed as financial instruments are financial contracts for differences, which relate to spread-betting on financial markets only, for example, stock or indices movements, but does not include spread betting on sporting events. Trading in financial contracts for differences will be a regulated activity once the new directive takes effect and the Financial Regulator will be the competent authority.