Recommendation 1: The Committee recommends that once the Government has established the public policy parameters for the new regulatory system, it should establish an Interim Gaming Regulatory Authority, based within the Department of Justice, Equality and Law Reform, but with representatives from other relevant Government Departments, in order to develop the regulatory system.

Recommendation 2: The Committee recommends that (a) from a modern regulatory perspective and in the interests of effectiveness, proportionality, transparency, accountability and consistency, and (b) based on studies of international norms as outlined in Chapter Three, the regulatory system18 should be responsible for the licensing and regulation of all gaming (this definition includes premises with gaming machines)19 in the State.

Recommendation 3: The Committee is of the view that the arguments against the retention of the current powers available to local authorities are overwhelming. The Committee recommends that casino and gaming operations, including premises with gaming machines or ‘amusementwith-prizes’ (AWP) machines, should be regulated and that the current powers available to local authorities under the 1956 Act should not apply.

Recommendation 4: The Committee recommends that the role of local authorities in relation to gaming activities should primarily be exercised through the planning process, but notes that for this to be effective there will need to be changes to the planning regulations. In that context the deliberations of the soon to be established Task Force on issues relating to adult entertainment will need to be taken into account.

Recommendation 5: The Committee recommends that the local authority shall be a notice party in relation to all applications for licences for gaming arcades and the gaming regulatory authority shall have regard to the opinion and views of the local authority.

Recommendation 6: The Committee recommends that a key principle underlying the provision and regulation of all gaming in Ireland should be social responsibility, i.e. protection of children and the vulnerable.

Recommendation 7: The Committee recommends that the provision of gaming services beregarded not as a right but as a privilege, which is subject to strictly enforced public policy criteria and which can be revoked, either temporarily or permanently, subject to due process, for failure to meet those criteria. The provision of gaming services shall be unlawful except pursuant to a licence issued by the gaming regulatory authority.

Recommendation 8: The Committee recommends that “gaming” and “betting” be treated as two completely separate types of gambling activity, which raise very distinct regulatory issues and which should be treated separately in any regulatory arrangements. The Committee considers that this is fundamental for the regulation of gaming. The Committee recommends that there should be no betting of any kind permitted on or in any licensed gaming premises. Likewise, there should be no gaming activity of any kind permitted on or in any betting or bookmakers’ premises.

Recommendation 9: The Committee recommends that, having regard to the possible establishment of a new gaming regulatory authority, consideration be given to a review of the role of the various bodies and Departments with responsibilities in the area of gaming and gambling with a view to ensuring coherent public policy.

Recommendation 10: The Committee recommends that sufficient flexibility be provided in any legislation so as to ensure that the gaming regulatory authority and/or the Minister may, by order, make Regulations under the Act in order to respond to technical or other developments or innovations in this rapidly evolving sector. The Committee is of the view that if this is not done the regulatory process will be unable to cope with the dynamic nature of this particular industry.

Recommendation 11: The Committee recommends that enforcement should be a key function of any new gaming regulatory authority (An Garda Síochána should of course continue to have a secondary enforcement role as should the Revenue Commissioners in relation to taxation matters) and that this authority should also have a prosecutorial role. Furthermore, there should be an express statutory basis for cooperation and the exchange of information between relevant agencies.

Recommendation 12: The Committee recommends that in the establishment of any new regulatory regime, and in order to ensure the development and implementation of successful anti-money laundering strategies, the licence awarding body must have the ability to undertake in-depth background investigations into the applicant’s financial, business and taxation history as well as any criminal or other relevant records.

While the necessity for these powers extends beyond money laundering considerations alone, the Committee wishes to stress that action to prevent money laundering is not just limited to areas of finance, including appropriate financial procedures, but is multi-faceted and starts from basic licensing requirements with consideration of such matters as good character, criminal record, taxation, financial history, disclosure of shadow directors and shareholders etc..

The Committee is also satisfied that requirements of the FATF as well as EU law can be met by casinos and that the gaming regulatory authority, in consultation with appropriate parties and by reference to best practice in other countries, can ensure that the necessary procedures are in place.

Recommendation 13: The Committee recommends the adoption of a restrictive licensing regime which provides the appropriate body with the power to strictly licence premises, operators, suppliers and key employees. The Committee believes that this meets the criteria for strict regulation set out by the Government as well as providing the flexibility to respond to developments and to meet public and local concerns. The appropriate regulatory authority, in the granting of licences, may have regard to the numbers and types of gaming establishments in an area.

Recommendation 14: The Committee recommends that the burden of proof be on the applicant seeking a licence to satisfy all the licensing requirements, whether they are the operator, maintenance, surveillance, manufacturing or key gaming personnel.

Recommendation 15: The Committee recommends that, if casinos are to be licensed, Horse Racing Ireland and Bord na gCon, should be allowed to apply for such licences subject to the appropriate planning and licensing consents and any necessary enabling legislation.

Recommendation 16: The Committee recognises that, ultimately, it is for Government to decide on what approach it wishes to take in relation to ‘racinos’28 and the relationship of any casino tax take to the needs of the horse and greyhound industries.

The Committee recommends that, at a minimum, the impacts of the advent or possible advent of a regulated casino sector on horse racing and greyhound racing industries be subjected to ongoing evaluation and, if a negative impact is established, appropriate ameliorative measures should be considered.

Recommendation 17: The Committee recommends that registered charities be permitted to apply for a licence in their own right or in partnership. However, a precondition to obtaining such a casino licence is the earmarking of a portion of the casino proceeds for charitable purposes. In order to avoid creating an environment of unfair competition, the Committee also recommends that the registered charity not be afforded any tax advantage in relation to the operation of a casino as compared to a commercial operator.

Recommendation 18: The Committee recommends that in the development of a new regulatory regime careful consideration be given to the status of amusement halls currently licensed under the 1956 Act.

Recommendation 19: The Committee has no rigid view on the matter of age restriction other than that persons younger than 18 years are not to be permitted in any licensed gaming premises, i.e. neither casinos nor gaming arcades.

Recommendation 20: The Committee notes the provisions of section 9(1) of the Gaming and Lotteries Act 1956 provides that the “licensee of premises licensed for the sale of intoxicating liquor shall not permit gaming on the premises.” The Committee recommends that a casino licence shall not permit the sale of intoxicating liquor. A casino may apply for a liquor licence and such an application will be treated like any other applicant with the exception of particular considerations which the Committee regard as necessary and proportionate.

Recommendation 21: The Committee recommends that any new gaming regulatory authority be empowered to commission research and to cooperate with other relevant agencies, both statutory and non-statutory, with a view to developing a body of empirical research in relation to problem gambling which can then be used to develop policies and regulations to minimise problem gaming. Such research pertaining to gambling (gaming and betting) in Ireland might best be undertaken by an existing independent body or agency with expertise in the area. Furthermore, the establishment of an independent problem gambling support group should be considered.

Recommendation 22: The Committee recommends that there be a statutory underpinning of the process of self-exclusion whereby individuals who acknowledge that they have a problem with their gambling enter into an agreement to ban them from entering, or to be removed from, specified gaming venues, for a limited period of time or permanently.

Recommendation 23: It is the opinion of the Committee that in addition to the normal business taxes, licensed casinos, as is the case in most jurisdictions across the globe, should pay some form of ‘gaming duty’ on the gross or net gaming revenue. In addition to this there should also be some form of licensing fee applied (e.g. premises / operator / supplier / key personnel or staff).

Recommendation 24: Taxation policy is a matter for the Minister for Finance in the first instance. On examination of casino tax rates and licensing fee structures applied in other jurisdictions, and having given due consideration to existing associated domestic taxes, it is the opinion of the Committee that a tax rate or duty higher than the 1% of turnover currently applied to off-course bookmakers is appropriate. The rate is a matter for the Minister for Finance having regard to other factors such as the expense of the licensing regime; the nature of the industry in Ireland; consideration of potential market demand and size; the impact of higher tax on the viability of both casinos and the regulatory system etc..

Recommendation 25: It is the opinion of the Committee that contemporary fixed odds betting terminals (FOBTs) are to be treated as gaming machines. Gaming machines should not be permitted in bookmakers’ offices. The term/label “fixed odds betting terminal” is now somewhat superseded by the fact that many of these machines offer gaming services in addition to betting, e.g. roulette, poker, blackjack etc., and so can be classified as electronic gaming machines. It should be noted that the Committee is not opposed to the introduction of new technology into betting or bookmakers’ offices provided that the service being provided utilising such technology is exclusively that of betting.

Recommendation 26: The Committee recommends that gaming machines (GMs) should only be permitted in the licensed environment of a casino or gaming arcade. In addition to not being permitted in betting or bookmakers’ offices, gaming machines should not be permitted in shops, take-aways, restaurants, hotels, public houses or any other premises.

Recommendation 27: The Committee recommends that the Government send a strong message to those currently engaged in casino-style or other unlicensed gaming activities to the effect that currently unlicensed operators should be advised that, in a new and strict regulatory environment, they must not assume that they will receive an operator’s licence. The fact that they are engaged in such activities at present will not necessarily, under any new regime, guarantee them a licence.

Recommendation 28: The Committee recommends that the Interim Gaming Regulatory Authority which it proposes should be established to develop the regulatory system, as well as other matters, should review the current position as regards such activities with a view to reporting to the Minister for Justice, Equality and Law Reform and, if necessary, recommend appropriate interim amendments to the criminal law to deal with these issues.

Recommendation 29: The Committee recommends that a regulatory system be established for remote gaming in Ireland. A full impact study, a technological assessment and industry analysis should be carried out, EU and world-wide implications as well as issues pertaining to access to these services of minors and other vulnerable persons should also be considered.

Recommendation 30: The Committee recommends that work should commence on the development of a separate regulatory framework for remote gaming, under the same regulatory authority as terrestrial gaming. The Committee notes that while the objectives and principles attached to the regulation of both remote and terrestrial gaming remain the same, the means of achieving them differ considerably.

Recommendation 31: The current state of development internationally of regulation of remote gaming, particularly the recent United States prohibition of payment mechanisms for gambling online, presents a window of opportunity for Ireland. The Committee recommends that the appropriate regulatory authority (in conjunction with other relevant Government Departments) address the concomitant regulatory challenges and provide a socially responsible and secure arena for the development of remote gaming based in Ireland. Should this opportunity be grasped within the appropriate timescale, Ireland, as a gaming friendly centre of excellence, can reasonably expect to attract a reasonable portion of this dynamic industry, therefore yielding significant synergistic benefits as well as employment opportunities.

Recommendation 32: The Committee recommends that any development in remote gaming must be strictly regulated to protect the vulnerable, prevent criminals from entering the market and ensure that being licensed in Ireland is a trustworthy seal of approval for e-gambling customers throughout the world. Such strict regulation is in the long-term interest of the better remote gaming operators as well as the State. Further discussion with the Minister for Finance regarding possible competitive taxation rates and with other Government Departments is necessary to advance such a proposal.

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Table of Contents
Chapter One: Background and Summary of Recommendations
1.1 Establishment of the Casino Regulation Committee 1
1.2 Background to the Establishment of the Casino Regulation Committee 1
1.3 Work of the Casino Regulation Committee 4
1.4 Public Policy Objectives 5
1.5 Recommendations and Conclusions 6
Chapter Two: The Gaming and Lotteries Act 1956 – Gaming: A General Assessment
2.1 Introduction 19
2.2 Review of Other Official Reports and the 1956 Act 19
2.3 Adoption of the Gaming and Lotteries Act 1956 21
2.4 The Role of Local Authorities Under the 1956 Act 23
2.5 Observations by the Casino Committee 24
Chapter Three: An Overview of International Regulatory Practices
3.1 Gaming Regulatory Structures in Europe: “One Size Fits All?” 29
3.2 Global Lessons on the Legalisation of Casino Gaming 37
3.3 Gaming Regulatory Structures outside Europe 37
3.4 Gaming in the United States 40
3.5 Gaming in Great Britain 41
3.6 Gaming in Australia 45
3.7 Gaming in New Zealand 46
3.8 Gaming in Canada 54
Chapter Four: Regulating Gaming in Ireland
4.1 Overview of the Current Gambling Industry in Ireland 61
4.2 The Regulation of Gaming in Ireland 68
4.3 The Gaming Regulatory Authority 74
4.4 Approaches to Licensing 76
4.5 Money Laundering 80
4.6 Gaming Licence and Gaming Machine Typologies 81
4.7 Taxation 93
4.8 Possible Legislative Content 99
4.9 Licence Requirements 100
4.10 The Operation of the Gaming Premises 101
4.11 Powers of the Gaming Regulatory Authority 102
4.12 Remote Gaming 102
4.13 Advertising 103
4.14 Problem Gaming 103
4.15 Enforceability of Contracts 103
4.16 Offences and Sanctions 104
4.17 The Establishment of an Interim Gaming Regulatory Authority 104
4.18 A Proposed Response to Current Developments 105
Chapter Five: Remote Gaming
5.1 What is Remote Gaming? 106
5.2 The Development of Remote Gaming 106
5.3 Technological Complexities 109
5.4 Overview of International Situation 111
5.5 Regulatory Options Available to Ireland 112
5.6 Views of the Committee and Recommendations as to a Possible Licensing Regime for Remote Gaming 113
5.7 Conclusion 116

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