David Snook outlines the changes that could lie ahead for Ireland

A major overhaul of the Irish gambling laws envisages an industry which will include casinos, arcades, internet and lotteries, according to a new study document released by the Irish Ministry for Justice and Law Reform.

Fresh legislation will replace the 1956 Gaming Act, which is recognised by the government and the industry as badly in need of updating.

The proposal is for a Gambling Control Unit to be established which would distribute licences following an investigatory process. Appeals would be possible against decisions of the Unit.

Measures to police the internet gambling business might include blocking offending or unlicensed website and to impact the financial transactions involved. The report notes that evidence from the US suggests that policing internet gambling by outlawing it in total has failed.

The powers of local authorities to permit or ban arcades in their communities may be lost. A previous report had come down strongly against the ‘patchwork quilt’ which is gaming permits in Ireland and instead suggests that the control of arcades is better done through planning permissions and by the right to issue licences for gambling premises.

A ban on under 18s entering gambling premises or playing online is recommended and locations would not be permitted close to schools.
The growth of ‘private members’ clubs’ offering casino gaming was noted and this, in conjunction with online casinos, encourages the Minister to recommend that Ireland should have the ‘real thing’. Two main categories of casinos are suggested, registered and resort casinos. The former could be small, no more than 15 machines and a ratio of machines to live tables.

Food and beverages would have to be offered and should have the ability to offer alcohol, but not on the gaming floor. A resort casino would be large-scale with a wider leisure/entertainment offering. The report notes that it may comprise up to 5,000sq.m of floor space, as many as 1,500 machines, live tables, entertainment, dining and refreshment areas. It may also have hotel, golf, spa, concert venue, conferences or other activities.

On betting, the report suggests that gaming machines should not be permitted on licensed bookmaking premises, which it says ‘would put an end to the controversy over fixed odds betting terminals (FOBTs)’. But it suggests that any product normally permitted over the counter may be offered through terminals.

A new regime for gaming machines should be introduced, including various categories of machines with stakes and payouts tied to the categories. The highest category - and therefore the highest stakes and prizes - would be the casino slot. An amusement machine, under current Irish law, is one in which the player may win a non-monetary prize up to the value of €7. The report suggests that no machine offering cash should be classified as anything other than a gaming machine. It also suggests that gaming machines should not be permitted in pubs, restaurants or other public areas such as train stations, shops or retail outlets.

A suggested category range for machines would be: Grade 1, casinos; Grades 2a to 4 would be adult gaming centres. An example of the grading, stakes and prizes put Grade 1 in casinos with a €5 stake and €5,000 maximum win; Grade 2a maximum €5 stake and €5,000 prize; Grade 2b €3 stake and €1,000 prize; 2c with €2 stake and €500 prize; 2d with €1 stake and €100 prize; 3 with €1 stake and €50 prize and the ‘amusement with prizes’ or AWP machine with 50 cent or €1 stake, the latter for a non-monetary prize and a maximum win of €10 cash or €20 in non-monetary prize.

The report emphasises that gaming machines should only be provided in licensed casinos and gaming arcades and not in bookmakers’ shops, takeaway outlets, restaurants, hotels or pubs. An adult gaming centre would have an 18 age minimum for entry, no table games or betting.

An amusement centre on the other hand would be licensed with gaming machines in the lower categories including AWPs as well as permitting children under 18 with those under 16 accompanied. The report notes that this would remove crane machines from shopping centres as it regards cranes as gaming machines.

Bingo, says the report, is a lottery under Irish law and is therefore restricted to charities, but the report notes the popularity of commercial bingo, especially on the internet. It makes no recommendation on the subject beyond noting that bingo might become a licensed activity capable of delivery through a stand-alone bingo hall or in AGCs or remain a charitable activity.

The report concludes: "No-one doubts that our gambling laws are in need of reform. The objective must be to ensure that any reform is balanced, recognising the potential harm that the activity can cause while acknowledging the fact that it is also a form of entertainment for many people. Neither can we ignore the potential economic benefits that could flow from a well-regulated gambling architecture that aims to be a standard maker in terms of tackling the remote gambling market."