Gaming in Ireland

Ireland is a land of contradictions when it comes to gambling. All the anecdotal and most of the statistical evidence is that the pastime’s popularity is increasing dramatically: for example, 17 percent of Irish residents bet more than once a week.

Sports betting, horse racing and dog racing are popular, as are the Irish Lottery and Bingo. Poker is also growing in popularity.

Sports and race betting is by far the biggest part of the land-based gambling business in Ireland, accounting for about €1.1bn in gross gaming revenue (total bets minus total wins) in 2007, the lion’s share of a sector worth €1.7bn in gross revenue altogether.

Lottery revenue, at just under €400m, was in second place, followed by gaming machines, which contributed about €200m. Bingo and casino gambling each accounted for less than €100m.

The total amount bet in the country more than doubled between 2001 and 2006, from €1.6bn to €3.6bn. In a similar period, 2000-2006, the number of betting shops also nearly doubled, from 700 to 1200.

And that €3.6bn figure does not include online gambling or casinos, which have an unusual status in Ireland – see below. The total amount bet including online and casinos has been estimated at €8bn.

Yet despite the flurry of gaming activity in everyday Irish life, regulators have not kept up. Legislation from 1931 and 1956 still controls the betting and gaming sectors. A review by the Dail, Ireland’s parliament, has long been promised. One major question has been whether the country will legalise fixed-odds betting terminals (FOBTs).

Gaming machines

Licences are issued both for gaming premises and for individual machines, in each case for either a three-month or a 12-month period.

In 2006 there were 92 gaming premises licences issued, slightly down on 2005’s figure of 102.

10,105 gaming machine licences were issued, an increase on 2005’s 9673.

However, this almost certainly under-represents the true prevalence of gaming machines, as there are believed to be many unlicensed locations and individual units. For example, the capital city of Dublin has not allowed slots for nearly a quarter of a century, but many continue in operation. It has been observed that although regulations in Ireland may appear tight, there is frequently little practical enforcement of them.

Casinos

Casinos are permitted to exist in Ireland only as private clubs, a legal manoeuvre which has deterred the large international casino operators from entering the country. Currently about 50 casinos operate this way, although the ambiguous nature of their position means that estimates of their number vary.

The number has, almost certainly, been growing. But the industry remains very small by regional standards. As a percentage of GDP, Ireland is believed to have the second-smallest casino sector in the EU, beating only Cyprus.

However, proponents of liberalisation argue that if Irish casinos were to achieve the same fully legal status they have in many other European countries, the industry could quickly reach €157m gross gaming revenue annually and nearly double that to €280m by 2020.

Employment in the sector, they say, would also reach 3600 people by the year 2020. That is a politically powerful point as unemployment in the country touches its highest rate for nearly two decades.

Non-gambling amusements

There are estimated to be about 300 dedicated amusements centres in Ireland and about another 300 venues that have some machines although they are not the core business: for example, bowling alleys and pool halls.

According to the Irish Gaming & Amusement Association, non-gambling amusement machines installed in the country include:

6000 pool tables

4000 jukeboxes

1000 soccer tables

1000 kiddie rides

1000 cranes

500 pinballs

500 pushers

500 redemption games

500 novelty games

The Association says there is unproven anecdotal evidence that the number of non-gambling amusement machines is growing.

Some of these do require licences: 6586 amusement machine licences, covering machines which offer small non-cash prizes, were issued in 2006.

A long wait for regulation

David Hickson, director of the Gaming and Leisure Association of Ireland (GLAI), speaks for most of the sector in these comments on the delays to regulatory overhaul: “It has been nearly four years since the government first announced its intention to consider strictly regulating the gaming sector in Ireland. Four years on, two periods of public consultation, and one government interdepartmental report later, we are still waiting for the government to decide on an appropriate framework which would provide the necessary consumer protection, promote responsible gambling, prevent criminal involvement, and secure our jobs and businesses.

“This piecemeal approach to legislation only serves to further confuse our business environment, it suggests a lack of cohesive and strategic thinking, and it displays a reluctance to deal confidently with the difficult issues surrounding gambling.

“A proper regulatory regime permitting licensed operators, similar to those in 25 of our EU neighbours, is still required. While the subject of gambling can give rise at times to emotive debate, we continue to firmly believe that only through a regulated environment can we promote responsible gambling, protect the weak and vulnerable, and ensure public safety.”

The industry’s blueprint

The GLAI’s proposals for regulation suggest that new rules governing casinos and online gambling are “a matter of urgency”. However, the government should adopt a framework flexible enough to adapt to changing circumstances in future.

It should “be appropriate to the Irish market, taking into account consumer demand, social, cultural and political sensitivities”.

It should ensure “parity of treatment between all forms of gambling in terms of operating conditions, including licence fees, taxation, advertising rules and anti-money-laundering obligations”.

It should not necessarily be based on the UK regime.

Taxation “must be appropriate to the scale of operation and sustainable in the market”.

Land-based casino licences “should not be limited in number, should be flexible to allow for innovation and should not be limited in time”.

Regulation of online gambling should seek to establish Ireland as a hub for international remote-gaming operations, much as the Isle of Man and Malta are today, rather than simply try to rake off tax revenue.

And “members of the GLAI should, in recognition of their efforts to self-regulate, be given favourable status to apply for casino and/or remote-gambling licences under any new code”.

One new law

Although the industry in Ireland is still awaiting a comprehensive regulatory overhaul, smaller legal changes do occur. This year, new rules that are significant for casinos come into force through Ireland’s Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, based on the third EU Money Laundering Directive.

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