The legality of casinos in Ireland has always been questionable, for the most part because of hazy wording in the 1956 Gaming and Lotteries Act which some argue outlawed the operation of casinos in Ireland entirely. Those with a different opinion and a belief in consumer demand for casino type services in Ireland established private members gaming clubs across the country which essentially offered similar services to a casino, but under the guise of a private club. By 2006 it was estimated that there were about 30 private members gaming clubs in Ireland generating about 3-4% of gross Irish gaming revenue. This 3-4% was well below the average 15% of gross gaming revenues enjoyed by regulated casino sectors across the EU. As if operating with no legal certainty was difficult, things were about to become a great deal more uncomfortable for these private members gaming clubs when the Minister for Justice Michael Mc Dowell announced in February 2006 that he planned to close with immediate effect all private members gaming clubs offering casino-type services in Ireland. This, he said, was in line with the spirit of the 1956 Gaming and Lotteries Act. The move was welcomed in some sectors, notably in the amusement arcade sector which has always argued, perhaps with some justification, that its sector has been crippled by regulation while the casino-type private members gaming clubs had been allowed to exist, unregulated, for decades. The organisation most vocal in its opposition to the Minister’s plans was the Gaming and Leisure Association of Ireland, which essentially represents the interests of most of the private members gaming clubs in Ireland, and which lobbied extensively to force regulation of the casino sector. In any event, a Cabinet decision in June 2006 changed the outlook once again, with an announcement from Minister McDowell that he would be looking at various options for regulating the casino sector, as opposed to closing it down. As a result of this decision, Minister McDowell then charged his department and a so-called ‘Casino Regulation Committee’ to provide him with legislative options for the regulation of the casino sector in Ireland. This move was particularly welcomed by the existing private members gaming clubs but also attracted comment and input from a wide range of gambling sector interests, not least the casino sector from outside Ireland, the Irish amusement arcade and gaming machines sector, the online gambling and sports betting sector, bookmakers etc., all calling for specific changes to existing legislation which negatively affects the way in which they do business or can innovate. It is reported that the Committee put together to provide the Minister for Justice with options, made recommendations to the Minister in December 2006. Although it is not entirely clear what has been recommended, the general belief is that the Committee advocates the regulation of a fully functioning casino sector, to be overseen by a specific regulator for that sector. This, according to the Gaming and Leisure Association Chairman David Hall “Would be a welcome development. We do accept that regulation will bring pressures on the sector with which it has not had to deal thus far, but ultimately operating in a regulated environment should, we hope, allow us to flourish. The key will be to regulate in a manner in which a balance between consumer protection and the ability to do business is achieved”. As far as other more detailed recommendations are concerned, one can only speculate, but it is certain that this would be a good opportunity for the Government to update some of the more antiquated provisions in the 1956 Act, notably those relating to stake and pay outs for machines. There is also speculation that bookmakers are calling for the right to house FOBTs in their shops across Ireland. As far as online gambling is concerned, the Irish Government has shown itself to be a forward looking legislator so it will be surprising if the proposals do not include some attempt to regulate that activity in Ireland. All of these potential changes are already attracting the attention of manufacturers, operators and service providers outside Ireland who rightly believe that a shake up of at least some of the operating rules for the Irish market will lead to opportunities which were simply not there before. Of course the greatest uncertainty about this entire exercise is the timing of it. Although the Minister for Justice has shown himself to be very eager to get a proposal through the Oireachtas and onto the statute books in a relatively short space of time, Ireland is set for a General Election in May or June 2007 and this may scupper the Minister’s plans. Given the need to update existing legislation and the need to regulate the casino sector, let’s hope it doesn’t.

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