Regulated gambling has been around in Ireland since the mid-19th century. But make no mistake, regulation has not quite stayed the same. It has evolved to meet the changing trends and times.
Casino gambling, as an example, only came under regulatory purview with the Gaming and Lotteries Act of 1956. The act prohibits commercial casino operations in Ireland. Going forward, though, The Gambling Control Bill of 2013, if passed, will relax this regulation, allowing up to 40 legal casinos to operate. Online gambling, however, has always been considered perfectly legal in the country.
The need for new gambling regulation
A new Gambling Regulation Bill is on the cards, however, to protect both problem gamblers and children from the risks of online gambling. And this will have implications for the online gambling industry too, which has grown fast in the past two decades. Gambling as such, is a EUR 8 billion industry in Ireland today, for a host of reasons including greater internet connectivity and convenience. This indicates the size of the potential regulatory ambit.
This is important. As the UK’s recent policy paper on gambling reform states, online gambling is associated with an “elevated risk of harm”. It estimates that problem gambling affects 300,000 people, with a disastrous impact on their economic stability.
Proposed gambling regulation in the UK
To counter the issue, it has the following regulations in mind:
1. Mandatory levy: To be placed on betting companies, this will go towards treating gambling addiction. It will also be used for protection checks for new players. At present, the levy is
not mandated and not all operators have paid their fair share, according to the UK Government.
2. Fine imposition: Bigger powers are also envisaged for the Gambling Commission to fine operators if found failing to protect people at risk. It will also be allowed to deal with black market operators through court orders. Further, it can work with internet service providers to block or cancel illegal sites.
3. Industry Ombudsman: A new body is to be created to settle disputes and hear out customer grievances with operators.
4. Limits on gambling spend and offers: New stake limits for online games like slots are also in the works. Further, big casino bonuses in the UK, are to come under increased regulation too. Aggressive advertising of these bonuses can be particularly harmful to vulnerable gamblers and could be restricted going forward.
UK’s regulation applied to Ireland
These and existing UK regulations could be instructive for Ireland, whose new gambling rules have been called a “bucket full of holes”. One example is self-exclusion, which can be practiced by online gamblers. This allows them to exclude themselves from one operator. But it still leaves them open to the option of signing up with others. In contrast, the UK works with a framework of blanket self-exclusion. This allows people to bar themselves from all operators.
Moreover, there is no space for aspects like affordability and source of wealth checks. Or even data on the harm done by gambling. The UK’s latest proposed legislation, for instance, offers ample data-based evidence on the harmful effect of gambling on some people. A similar study can be useful for the Irish gambling regulation.
Next, the appropriate use of the social impact fund is not defined tightly enough either. It depends entirely on the Minister in charge to determine how much of industry turnover will go towards it. This too, is different from the UK’s proposed legislation, which calls for a specific levy to help in treating problem gamblers.
However, not everything that works for the UK is expected to necessarily work for Ireland. Ireland’s Gaming and Lotteries Act of 1956 bans gaming machines in places that sell alcohol. But Barry Grant, counsellor, and project manager at Extern Problem Gambling, says the new legislation should not inadvertently allow this in Ireland.
This is an occurrence in countries like the UK and Australia, though. But the conditions are different. In Ireland, 70% of men and 34% of women over the age of 15 are classified as hazardous drinkers. In England, by contrast, the rate of alcoholism is much lower at 20%. This alone indicates that the Irish might be at higher risk of alcohol induced gambling.
Firmer gambling laws
With online gambling, in particular, being relatively recent, it was only to be expected that laws will catch up only over time. Now, however, with the harm from gambling amply clear, it is time for more up-to-date regulation. Ireland has taken the first steps in this direction, but it is clear that much work is still required. The UK’s latest proposed regulation could be a guide for its own laws, including what not to do.
