What you need to know
- Irish gambling law is currently undergoing a complete overhaul with the gradual commencement of the Gambling Regulation Act 2024 (GRA 2024).
- The GRA 2024 introduces a centralised system of licensing and regulation, overseen by the recently established Gambling Regulatory Authority of Ireland.
- The Authority has an array of powers available to it for the purpose of preventing unlicensed gambling and has already begun to exercise those powers.
- The GRA 2024 also introduces mechanisms designed to address compulsive or excessive gambling.
Recent regulatory action
Ireland’s recently established Gambling Regulatory Authority of Ireland, also known as the GRAI, has already begun to flex its regulatory muscles. In its most recent newsletter, the GRAI highlighted how it has begun to take enforcement action against unlicensed betting activity providers as well as websites, influencers and media outlets participating in the advertising of those unlicensed activities. Prediction markets, given their current popularity, appear to be a point of particular focus for the regulator.
In its newsletter, the GRAI emphasised that the unlicensed provision of a betting activity is a “serious offence” with the potential for up to eight years’ imprisonment. This includes non-Irish entities providing remote gambling services, including online services, to Irish consumers. The GRAI confirmed that several investigations into the facilitation of black-market gambling are ongoing and that it is cooperating with law enforcement agencies and major technology platforms to address extra-territorial operators and facilitators.
It is therefore vital that entities seeking to provide gambling services, or run advertisements related to gambling in Ireland familiarise themselves with their obligations under the GRA 2024.
Centralisation
The GRA 2024 introduced a new, centralised system of gambling regulation overseen by a single gambling regulator, which resulted in the GRAI’s establishment. Those seeking to offer gambling services in Ireland may apply to obtain the necessary gambling licence for betting activities via the GRAI’s online portal. The portal is expected to extend to gaming and lottery licences as further provisions of the GRA 2024 are commenced. The pre-existing system of licenses and permits, split across several pieces of legislation and overseen by a mixture of the Gardaí, District Court and Revenue Commissioners is being phased out.
At time of writing, the betting licence provisions – covering bookmaking, betting intermediaries and pool betting - are the most advanced in terms of commencement. While a significant number of other provisions are already in force, including enforcement powers, advertising obligations and player protection measures, the licensing provisions for gaming and lotteries have not yet been commenced. However, once fully commenced, the GRA 2024 will apply to all gambling activities including betting, gaming and lotteries.
Enforcement
The GRAI has extensive oversight and enforcement powers, including:
- Significant discretion in determining the information, including financial and business information, to be provided by gambling licence applicants
- Broad powers of search and seizure (via its authorised officers), including the power to question individuals under oath
- The power to impose administrative sanctions: a financial penalty of up to €20 million or, if greater, 10% of turnover; the suspension or revocation of a gambling license; or the imposition of a condition on a gambling licence
- The ability to apply for a range of court orders against third parties, such as banks or internet service providers, designed to limit a non-compliant or unlicensed gambling service provider’s ability to operate, and
- The ability to prosecute beneficial owners and relevant officers (including directors and company secretaries) of legal persons that have committed an offence under the GRA 2024.
Modernisation
The GRA 2024 updates the Irish system of gambling licensing and regulation to account for modern forms of betting, gaming and lotteries.
The GRA 2024 now establishes a system of “business to consumer” (B2C) gambling licenses which includes:
- In-person licenses
- Remote licenses, and
- In-person and remote licenses.
Accordingly, once the relevant gaming provisions of the GRA 2024 are brought into force, it will be possible to obtain a license from an Irish regulator for the provision of online gaming activities to Irish consumers. Note that, while significant provisions of the GRA 2024 are already in force, the licensing provisions for gaming and lotteries have not yet been commenced.
Operators should also take heed of the additional obligations that accompany this modernisation. Most notably, the requirement to obtain a “business to business” (B2B) licence covers two distinct situations:
1. Selling or supplying to another person any:
- “Gambling product”, meaning any gaming machine or other machine, equipment or software used, constructed or adapted for or in connection with gambling, or
- “Gambling related service” – meaning any service directly or indirectly related or ancillary to any gambling activity. This includes services providing odds to gambling licensees, web hosting services, support and maintenance services as well as risk and fraud management.
2. Purchasing any such gambling product or gambling related service.
Given the broad nature of these definitions, many operators seeking to establish or continue operating a gambling business in Ireland will need to hold both a B2C and B2B licence, depending on the nature of their activities.
In addition to the B2C and B2B licensing system, the GRA 2024 will provide for licenses authorising gambling activities “for a charitable and philanthropic purpose”. The GRA 2024 retains existing provisions which exempt certain charitable lotteries from any licensing requirement provided they stay beneath certain thresholds.
Player and societal welfare
The GRA 2024 introduces several mechanisms intended to address compulsive or excessive gambling, some of which are already in force. For example:
- Advertising restrictions – gambling licensees are required to ensure that any advertising on social media is only targeted at users with an account, who have subscribed to view the licensee’s content. The GRA 2024 also introduces a general prohibition on the running of gambling advertisements via radio, television and audiovisual on-demand (streaming) services between 05:30 and 21:00.
- The Social Impact Fund – licensees are required to make annual contributions to the Social Impact Fund, which will be used to finance initiatives designed to address compulsive or excessive gambling.
- The National Gambling Exclusion Register – individuals will be entitled to self-exclude from all gambling services. Licensees will be required to have regard to this register when carrying on their business. Licensees that are unable to access the register may find themselves prohibited from engaging in gambling activities or accepting payments from participants.
- Monetary limits – licensees must enable participants to set a monetary limit on their gambling activities.
- Training – licensees must ensure that their members of staff undergo a GRAI-approved training programme to ensure they can recognise the symptoms of compulsive or excessive gambling and are aware of the licensee’s obligations. Failure to comply is a criminal offence.
Comment
The phased commencement of the GRA 2024 will result in a complete overhaul of Ireland’s approach to gambling regulation. Operators will face an entirely new licensing regime and, as further sections of the GRA 2024 are commenced, an ever-growing list of compliance requirements. Moreover, the GRAI’s enforcement powers are now in effect, and the regulator has not been shy about exercising them.
Should you require assistance in assessing your obligations under Irish gambling law, or need advice on the applicable licensing regime, please contact a member of our Public, Regulatory & Investigations team.
The content of this article is provided for information purposes only and does not constitute legal or other advice.