merrion street

Minister Browne announces the commencement of the Gaming and Lotteries (Amendment) Act 2019

• This Act modernises the promotion of gaming and lotteries
• Legislation also standardises the minimum gambling age at 18 years
• Will act as an interim reform measure pending the comprehensive reform of gambling in Ireland

30 November, 2020

The Minister of State with special responsibility for gambling regulation, James Browne, T.D., has today announced that the Gaming and Lotteries (Amendment) Act 2019 will come into effect on 1 December 2020. This fulfils the commitment made when the legislation was enacted. 

Making the announcement, Minister Browne said,

“This Act modernises the Gaming and Lotteries Act 1956 and will help the better promotion of local gaming and lottery activity. These activities, held primarily for charitable and philanthropic purposes, are the lifeblood of our sporting clubs and community organisations across the country.

“Many of these clubs and organisations have had their fundraising efforts hit hard by the pandemic. With Christmas approaching, some will already be planning local end of year raffles and draws for small prizes. I want to assure you that these changes I am announcing today will not impede your efforts.”

The main purposes of the 2019 Act is to:

• Streamline and modernise the application process for gaming permits and lottery permits and licences for smaller scale, local gaming and lottery activity.
• Protect underage people by standardising the minimum age for all licensed gambling at 18 years of age, including for betting on the Tote. 
• Ensure more proceeds from lotteries goes to charitable causes.
• Update the stake and prize limits for licensed gaming machines, with a provision for the Minister to amend the amounts by regulation.
• Serve an important public interest in assisting the better promotion of gaming and lotteries and enhance consumer protection.

The 2019 Act is an interim reform measure pending the comprehensive reform of gambling in Ireland. The Government is committed to the modernisation of our licensing and regulatory environment for gambling. A new independent gambling regulator will enforce appropriate licensing and regulatory measures in respect of all gambling activities, including online.

Referring to the Programme for Government commitment, Minister Browne said:

“Gambling is a large and evolving industry. It must be the subject of a modern, sensible and effective licensing and regulatory approach. My Department is now engaged in the drafting of a General Scheme of a new Bill to provide for that comprehensive reform.

“I was also pleased to secure “seed funding” of €200,000 for the new Regulator as part of the Justice allocation in Budget 2021”.

Permits and licences already issued under the provisions of the 1956 Act will remain in force until their next renewal date. If that date is after 1 December 2020, the new provisions will apply. All necessary arrangements will be in place to support the commencement of the Act including:

• Application Forms for Gaming permits and Lottery Permits from An Garda Síochána;
• New registers of permits and licences issued by An Garda Síochána, the District Court and the Revenue Commissioners; and
• Rules of the District Court.

Further information on the changes announced by Minister Browne today can be found on the website of the Department of Justice at: www.justice.ie.

ENDS…/

Note for Editors

The Act can be located here: http://www.irishstatutebook.ie/eli/2019/act/44/enacted/en/html

The following table sets out the key elements concerned for gaming and lotteries.

¹If the lottery is held for charitable/philanthropic purpose, up to 5% of proceeds only may be retained for administrative costs.

²An annual or ‘one off’ lottery may be held, with a maximum prize limit of €360,000.

³A minimum of 25% of the total proceeds must be allocated each month to the charitable/philanthropic purpose promoted under the Licence.

Gaming and Lotteries (Amendment) Act 2019

The Gaming and Lotteries (Amendment) Act 2019 significantly amends and modernises the original Gaming and Lotteries Act 1956 (the Principal Act), which governs the permit and licence approach to gaming and lottery activity and for the licensing of gaming machines in amusement halls and funfairs.

The most significant changes made by the 2019 Act are as follows:

Gaming

Section 3 amends section 4 of the Principal Act to restate that it is an offence to promote gaming without first having secured a gaming permit or licence. (This is largely a restatement of the existing law).

Section 4 inserts a new section 9A into the Principal Act to provide for gaming under permit:

• A modernised system of gaming permits is provided, without distinction on any particular location or type of gaming (e.g. card games, pool, darts, etc.).
• Greater information is required of the applicant, including the intended beneficiary of the gaming.
• Permits would be issued by the Garda Superintendent for the relevant district.
• The Permit, once issued remains valid for 12 months.
• In any one game, the maximum stake is €10 and maximum prize €3,000. (This updates the previous 1956 limits of 3 cent and 50 cent for gaming at carnivals, circuses, etc.).
• No player may win more than €3,000 in each game whether it is conducted in a single or multiple event. If more than one of the same game is conducted at the same time, the total value of the prizes shall not be more than €3,000.
• The gaming may be promoted for charitable or philanthropic benefit or for the personal benefit of the promotor.
• There is no mandated distribution of the proceeds between the beneficiary, the prizes or expenses incurred. Such matters are at the discretion of the promoter.

Part III of the Gaming and Lotteries Act 1956 – gaming machines

Part III of the Gaming and Lotteries Act 1956 – Licencing of Amusement Halls and Funfairs - sets out the process with regard to licensed gaming machines. The Minister for Justice has no responsibility for the licensing process for gaming machines. The only function of the Minister is in the setting of stake and prize amounts for such machines.

The 2019 Act does not make any changes to sections 12 and 13 of the 1956 Act concerning the power of Local Authorities to adopt resolutions permitting gaming in their administrative areas. The District Court may issue a certificate authorising the issuance of a licence permitting gaming at an amusement hall or funfair where such a resolution has been adopted. With that certificate, the operator may apply to the Revenue Commissioners for a gaming licence for machines and premises.

Section 5amends section 14 of the Principal Act to increase the maximum stake and prize limits for licensed gaming machines from 3 cent to €5 and 50 cent to €500, respectively. Those limits had not been updated since 1956.

The revised Section 14 also makes it an offence to accept a stake from a player under the age of 18 years.

Section 6amends section 15 of the Principal Act to provide that the District Court, in granting a certificate for licensed gaming machines, may attach conditions limiting the hours of operation.

Section 7 inserts a new section 19A into the Principal Act to provide for a register of gaming licences (in relation to gaming machines under Part III of the 1956 Act) to be maintained by the Revenue Commissioners.

Section 8 substitutes a new section 26 into the Principal Act and makes it an offence to promote lotteries without having secured a permit or licence. (This is a restatement of the existing law).

Lotteries

Section 9 inserts a new section 26A into the Principal Act to provide for lotteries that do not need a permit or licence. These lotteries must be for a charitable or philanthropic purpose only and can have a total prize limit of €1,000, a maximum ticket price of €5, and a maximum of 1,500 tickets permitted for sale. These lotteries can only be held once in every 3 months.

Section 10 inserts a new section 27A into the Principal Act to provide for a lottery held in conjunction with certain events. If the lottery is part of a marketing promotion, e.g. a person is given or buys a product and are entered into a draw to win a prize, it does not require a permit or licence. The total value of the prizes allowed is €2,500. There can be no charge to a participant, other than the price of product if such purchase is required. Nor can there be a charge for redemption of any prize won.

Section 11inserts a new section 27B into the Principal Act to provide for lotteries (including bingo) promoted under permit. The following new conditions will apply:

• A modernised system of lottery permits is provided.
• Greater information is required of the applicant, including the intended beneficiary of the lottery.
• Permits would be issued by the Garda Superintendent for the relevant district.
• The Permit, once issued remains valid for 12 months.
• The maximum ticket price is €10.
• The maximum weekly prize fund limit is €5,000. (This is no change from current law).
• Where a lottery prize reaches the €5,000 maximum for a weekly event (draw/raffle/ticket sale/bingo, etc.) it must be held at that amount. (The lottery permit holder is not explicitly prevented from offering some type of bonus not directly related to the prize amount if they so choose).
• If the lottery is for a charitable/philanthropic purpose, a maximum of 5% of the proceeds may be retained by the permit-holder to cover any expenses incurred. The remainder of the proceeds may be distributed between prizes and benefit to the charitable or philanthropic purpose.
• If the lottery is for a private promotor benefit, the 5% expenses provision limit does not apply.
• It is an offence to accept a stake from a player under the age of 18 years.

Section 12substitutes a new section 28 into the Principal Act to provide for lotteries (including bingo) promoted under licence.

Licences may be issued by the District Court for charitable and philanthropic causes only (e.g. sports clubs, community groups, etc.). No licence may be issued for the promotion of a lottery for the personal benefit of the promotor.

• There are increased information requirements and conditions compliance on applicants for licences to ensure the best promotion of lotteries, ensure customer confidence to deter possible criminal behaviour or fraud, meet anti-money laundering requirements, etc.
• The licence, once issued remains valid for 12 months.
• No maximum ticket price is prescribed for a lottery promoted under licence.
• The maximum prize remains at not more than €30,000 for a lottery held weekly.
• The maximum prize remains at not be more than €360,000 if a lottery is held as a once of event in a year. (This could apply to situations where sports clubs might raffle high value items, e.g. properties.
• The 1956 Act did not require a lottery agent to give any prescribed level of the proceeds to the lottery licence holder. The only amount prescribed was that the agent could keep 40% of the proceeds for expenses.

• A new payment matrix, for the first time, guarantees that the lottery licence holder must receive a minimum of 25% of the lottery proceeds.
• A maximum of 75% of the proceeds can be allocated to prizes.

• Any payment to expenses cannot exceed 25% of proceeds (and would have to come from the 75% prizes percentage amount, unless otherwise provided).
• It is an offence to accept a stake from a player under the age of 18 years.

Neither the 1956 Act, nor the 2019 Act provides for a separate legal pathway for the licensing of commercial bingo. Bingo operators can act as agents for licence holders if they choose to run a lottery in that way.

Section 18 substitutes a new section 44 into the Principal Act to provide for a consolidated and modernised list of penalties for offences under the amended Act, including fine amounts, and provision for corporate bodies to incur penalties.

Section 19 substitutes a new section 46 into the Principal Act to provide for the suspension/revocation by the District Court of a licence/permit upon conviction. It provides for an appeal of such conviction to the Circuit Court.

Section 25inserts a new section 4A into the Totalisator Act 1929 to provide for, the first time, a minimum age limit of 18 years for betting on the Tote in accordance with the Totalisator Act 1929.

Future reform of licensing and regulation of gambling

Gambling activity is of considerable economic impact in Ireland. The value of the Irish gambling market annually has been estimated at €8-10 billion. The industry is large, complex, growing and evolving from a largely land-based manifestation to an online one, increasingly without reference to national boundaries.

The Programme for Government commits to establishing ‘a gambling regulator focused on public safety and wellbeing, covering gambling online and in person, and the powers to regulate advertising, gambling websites and apps. This commitment is clearly directed towards the protection of the public and the regulator will have a major role in this regard.

Work on the preparation of comprehensive new gambling legislation is underway in the Department of Justice. That work will have regard to the recommendations in the Inter-Departmental Working Group on the Future Licensing and Regulation of Gambling in Ireland, approved by Government in March 2019 and other relevant Reports. Regard will also be had to reform developments and issues in other States,

The Working Group Report recommends that the licensing and regulatory functions for all forms of gambling will be the responsibility an independent gambling regulator which would be self-financing insofar as possible through fees and levies imposed on licensed gambling operators.

The gambling regulator will:

• Regulate the industry in respect of protection of vulnerable persons, including age restrictions, staff training, self-exclusion measures and controls on advertising, promotions and sponsorship.

• Assume the current responsibilities of local authorities, the District Court, An Garda Síochána and the Revenue Commissioners in the licensing process for gambling activities.

• Administer a new Social Fund, which will support research, information campaigns and even treatment. The Fund would be supported by levies on licensed operators.

A modern and effectively regulated gambling environment will ensure, to the greatest extent possible, that gambling will be a safe, fair and entertaining activity for the majority of those who choose to take part in it. It must provide enhanced consumer protection for players while limiting to the greatest extent possible the harmful effects on young people and those who may be susceptible to addiction.