lgai submission on gambling control bill 2013

LICENCED GAMING ASSOCIATION OF IRELAND

THE GAMBL ING CONTROL B I L L 2013Department of Justice, Defence and Equality

Submission of The Licenced Gaming Association of Ireland

August 30, 2013

The Gambling Control Bill 2013

Submission of The Licenced Gaming Association of Ireland

to the Department of Justice,Defence and Equality

August 30, 2013


1. Introduction page 4

2. Factual information and overview page 6

3. Head 15 – Granting of a Licence page 9

4. Head 2 – Transition page 12

5. Head 17 – Segregation page 13

6. Stakes and Winnings page 15

7. Definition – Amusement Machines page 16

8. Granting a 2B Licence – Amusement Hall/Arcade page 18

9. Head 17 - Opening Times page 19

10. Head 17 – Gaming Machines in Bookmakers page 20

11. Head 17 – Gaming Machines in Take-aways etc page 22

12. Head 38 – Appeals against decision to reject application page 24

13. Head 54-58 – Monitoring and Compliance page 25

14. General – Local Authorities page 26

15. Head 53 – Hours of business page 27

16. Head 73 – Promotions and Gambling page 28

17. Head 77 – Establishment of Fund page 28

18. Head 20 – Bingo Licences page 28

19. General Observation – Interim Gaming Authority page 29

20. General page 30

Gambling Control Bill 2013 – Submission on behalf of Licenced Gaming Association of Ireland


Summary –Gambling Control Bill 2013

Submissions

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This submission is being made by themembers of the Licenced GamingAssociation of Ireland (LGAI) and has beenprepared after advises and assistance fromMr Barry Galvin of Barry C Galvin & Son,Solicitors who have been retained by the Association.

The members of the Licenced GamingAssociation of Ireland are all holders ofcurrent Gaming Licences and CourtCertificates and all operate in areas wherePart 3 of the Gaming & Lotteries Act 1956has been adopted. There are currently 57licences held for the operation of GamingPremises throughout the Republic ofIreland. To currently obtain a GamingLicence, each licencee must apply to thecourts on an annual basis and adhere to therequirements laid down by the courts andset in the current legislation, namely theGaming and Lotteries Act 1956 and itsamendments.

It is respectfully submitted that themembers of the LGAI, individually andcollectively possess the highest levels ofinformation, knowledge and expertise inthe area of gaming and by association inmost of the other areas of gamblingcovered by the general scheme proposed in the 2013 Bill. Mr Galvin’s firm hasrepresented clients in the sector for manyyears and recently he was involved insubstantial cases where the Gaming and Lotteries Act 1956 was in issue.

The submissions that will be made includethe following

• Security of TenureRecognition should be given to existinglicenced proprietors.

• Proposed segregation of amusementand gaming areasAccess to gaming area should be througha supervised access-controlled doorway.

• TransitionThe number of gaming machinespermitted on current licences to remainthe same for existing licence holders.

• Stakes and winningsRaise the levels of winnings and stakes of gaming machines in line with therecommendations of the Report of the Casino Committee.

• Opening hours Increase the opening hours in relation to Category 2A and 2B licence holders.

• Amusement/Amusement with PrizeMachines The current level of win value put onAmusement/Amusement with Prize(including cash) machines to be raised and the definitions contained in theCasino Committee Report in relation to same be adopted in terms or theircontent and implementation as set out in Section 7 (page 16).

• Local Authorities The current situation whereby localcouncils can prohibit the use of GamingMachines creates numerous difficultiesand a new regime should be adopted.

Section 1Introduction

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• Prohibit the use of Gaming Machinesin BookmakerThe Casino Committees recommendationsshould be adopted with regard to thetotal prohibition of Gaming Machines in bookmakers.

• DefinitionsThe Definitions contained in the Billshould be strengthened so that the law cannot be circumvented.

• Appeal against refusal of Applicationof a licenceIt is submitted that an appeal system toan independent body should be providedin the Bill.

• Monitoring and complianceThe regime as set out in the Bill isunworkable and that the monitoring and compliance should include theinvolvement of An Garda Síochána.

• Promotion and Gambling

The LGAI submit that there should be

a complete prohibition on any direct

contact marketing.

• Establishment of Fund

The LGAI agree and welcome the

establishment of such a fund.

• Bingo Licences

The LGAI are of the view that the same

amount of VAT should apply to all

gambling services.

• Establishment of an Interim Gaming

Regulation Authority

The LGAI submit that the current

situation is untenable and that an

Interim Authority should bring in certain

amendments to the current legislation

to prevent this on-going evasion of

the law.

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2.1 Licenced gaming is carried out in 57locations by members of the LGAI, all of whom are strictly regulated and tax-compliant.

Illegal gaming is being carried out in avariety of premises throughout Ireland.Some of the largest gaming halls aresituated in Dublin city where the localauthority has not authorised gaming bySection 13 of the Gaming and Lotteries Act 1956.

Estimate of gaming machines by LGAImembers

• Dublin/Wicklow 7,000

• Galway Cork Donegal 10,500

• Other counties at 350 average 7,350

Total 24,850

Licenced (2012) 5,661

Total unlicenced 19,189 (77%)

It is also the case that illegal gamingmachines are present in a substantialnumber of licensed premises. No accuratecountry-wide information is available but asample taken in County Meath in 2012identified 432 unlicenced gaming machineson offer to the public in seven amusementarcades and 48 public houses and food take-away premises.

Apart from demonstrating an appalling lackof enforcement, the County Meath exercisedemonstrates the credibility of the generalfigures for unlicenced gambling machines in Ireland set out above.

The current requirements and parameters

for a court application by the existing 57licenced operators currently can besummarised as follows:

• Confirm correct zoning and planning forthe operation of a Gaming Arcade.

• Adhere to the Opening and ClosingHours determined by the court.

• Confirm that an annual inspection by the fire officer has been carried out toconfirm compliance of the building.

• Provide a complete listing to the court of the number and type of machinesbeing made available for play.

• Confirm tax clearance certification.

• Pay the sum of €505 per machine perannum, plus a premises licence of €630.

• Provide amusement facilities in additionto gaming.

• Provide for confirmation by An GardaSiochana that the licence has beenoperated in the previous 12 months in a correct manner.

• Provide satisfaction to the general publicthat the licence has been operated in the correct manner in the previous 12 months.

2.2 General Overview of theLicenced GamingAssociation members

The 57 licenced premises throughout thecountry are mainly located in holiday/leisure and seaside locations and in mostcases the businesses have been family-run

Section 2Factual information

for several generations and are a part of the commercial fabric of these locations.Practically all of these businesses comprise the same traditional model andcan be described as being two segregatedbusiness offerings. Firstly a “familyamusement area” which is open to children and adults alike, and secondly a “Gaming Area” which is an area forstrictly over 18’s.

The family amusement area machines canbe split into two main categories. Firstly,“amusement machines” ie video shootinggames, car simulator and video games, pool,air hockey, table soccer, pinball, kiddiesrides, Dance machines etc and secondly

“amusement with prize machines” ie, prizecranes, coin pushers, skill prize games, quizprize games, redemption machines etc.

Within the gaming area the machines therewould be a combination of both traditionaland electronic slot machines and automatictable games etc.

Under the current legislation it is arequirement of the granting of a GamingLicence that other forms of entertainment,ie amusements, are provided by the operator.

An example of the responsible approach ofthe members of the LGAI is to be found byaddressing the contents of the letter fromTiglin Challenge Limited dated 29th August2013 (see next page).

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Tiglin Challenge Limited is a company limited by guarantee and registered in Ireland no. 220213. Registered Office: 42a Pearse Street Dublin 2. Charity Registration Number CHY11596.

Directors: P. Caffrey, M. Ashe, L. Hogan, Dr. J. Latham, A. McCarthy (Chairman), E. McCarthy, C. Ryan. Company Secretary: A. Nevin.

Tiglin, Ashford, Co.Wicklow, Ireland T • +353 (0)404 49683 F • +353 (0)404 40020 E • [email protected] W • www.tiglin.ie

�� 29/8/13

To Whom It May Concern:

Tiglin are national addiction centre who provide individuals with an effective and comprehensive solution to life-controlling gambling addiction problems.

We welcome the publication of the General Scheme of the Gambling Control Bill 2013 and are pleased to see the outline proposals for safeguards and funding by the Minister for Justice in relation to the protection of vulnerable persons from risks to their well being arising from gambling.

We would strenuously object to the proposal of Gaming Machines being permitted in betting or bookmakers’ offices, shops, take-aways, restaurants, hotels, public houses or shopping centre concourses. We feel this would represent a massive expansion of availability of gaming machines onto the high street and would be in total contravention to the core principle of protecting vulnerable people and young adults. We also feel that the suggestion of allowing gaming machines into such premises is totally disregarding the observations to not allow them made in the “Regulating Gaming in Ireland” report.

We are currently working with the Licensed Gaming Association of Ireland (LGAI) in relation to support and information programmes and would hope to expand this service to the all other Gambling sectors covered in the new legislation.

We are aware that currently 57 gaming licences are currently in existence in Ireland but hundreds of unlicensed/illegal establishment are in operation. We support fully the regulation of gaming establishments and know that such establishments who operate under licence and within the parameters of the law are also willing to work alongside the Tiglin services to help support those who are addicted to gambling. Services that remain unregulated ignore their responsibility to support their customers who may be struggling with gambling. With the regulated growth of this industry and the revenue that would be generated through the suggested �10,000 per annum licence fee both the existing 57 licence holders and the 40 casino’s due to open shortly would be displaying their willingness to trade legally and responsibly. Doing this they would not only offer the public their trade but also support the vulnerable.

Tiglin would also like to make a recommendation that the same responsibility that has been displayed by the existing gaming licence holders would be brought to the bookmakers. It is our view that these establishments who profit from gambling should show solidarity and support to their vulnerable customers.

Thank you for taking the time to read our views.

Yours truly,

Philip Thompson

CEO Tiglin

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Observation The entire thrust of the Bill, including thestatement from Minister Shatter, indicatesthat nothing less than “high qualityservices” will be acceptable from thegaming sector. In that regard it is cleartherefore that premises of the highestquality which are staffed by competent and experienced persons are essential. Toimplement this, ongoing gaming should becarried out by the persons in the industrybest placed to do so, that is to say thegaming which is carried out by the 30 or so persons who actually hold 57 gaminglicences which are for mainly substantialpremises in various parts of the country.These persons have already demonstrated a proper approach to the various issues thatarise and have invested substantially inpremises (obtaining planning permissionand fire certificates etc.), the training ofresponsible staff and appropriately-calibrated gaming machines.

The Draft Bill does not at all take intoconsideration the past and presentparticipation and investment of the licensedproprietors of gaming/amusement arcades.The Bill opens up a number of uncertainpossibilities, in many cases without thepossibility of participation or objectivechallenge. Some parts of the legislationmight well be a disproportionateinterference with the right to work/private property.

It is proposed that there should berecognition of the existing licencedproprietors and their investment in thebusiness.

Proposal It is suggested that the new provisions for these businesses would be similar to the Intoxicating Liquor Acts regarding thesupply of alcohol to members of the publicin a strictly controlled and regulatedregime.

The Licencing Acts have for many yearsrecognised that common sense andcommerciality must apply where a person isconsidering investing in the licenced trade.In that regard a person who is consideringinvesting in the licenced trade can apply tothe courts for a declaration under Section 15of the Intoxicating Liquor Act 1960 wherebythat person can achieve certainty in hisproposed business enterprise. He canassemble all of the necessary constituentswhich he considers will entitle him to begranted an Intoxicating Liquor Licence for a premises and he can then apply to theCircuit Court and request the court toexamine the documents submitted and, ifthey are satisfactory (and having consideredany objectors consequent on publication ofthe application), decide that the premiseswill be suitable and grant/refuse theapplication.

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Section 3Head 15 – Granting of Licence

– Security of Tenure with comparison to the Intoxicating Liquor Acts: Head 2

The declaration if granted will declare that, if the premises are constructed inaccordance with the plans produced to thecourt (which will include planningdocuments and Fire Officer involvement),then a licence will be granted.

The 1960 Act at Section 17 then provides forthe final licencing stage. The only evidencerequired by the court at that stage is:

A. That the premises have beenconstructed in accordance with theplans submitted to obtain the Section 15 declaration and,

B. The character of the applicant.

The court then grants the certificate. It isthen sent to the Revenue Commissionersand they issue the Intoxicating LiquorLicence for the period until the next annual licencing sessions.

The licence is in force until the next annuallicencing sessions when it must be renewedand thereafter it must be renewed annually.Unless an objection is lodged in the DistrictCourt the licence is automatically renewedon application by the licensee on lodgmentof the application forms, payment of thelicence fee and on production of a TaxClearance Certificate.

If the Gardai or any person wishes to objectto the granting of a licence then thatobjection is lodged in the District Court andthe licence is not automatically renewed butthe court will hear objections and, if they are well founded, the court has power torefuse the licence (there is an appeal against this refusal to the Circuit Court).

It is submitted that this process, dulyamended, would ideally suit the differentaspects of gaming and would result in anefficient regime of licencing as well asproviding security of tenure for genuineinvestors in the business.

Suitably drafted, the legislation would alsoinclude the proper objective parameters forthe granting of a licence similar to that ofthe Intoxicating Liquor licencing provisions,where by public advertisement, theinvolvement of An Garda Síochána and theinvolvement of members of the public canoccur in an open and transparent manner.Appropriate involvement of the OGCI couldbe provided for in the legislation.

Applying these principles to thegaming/amusement arcades it is submittedthat the proper process to be put in placewould be that the District Court would be the court having jurisdiction over thegranting of a licence in the first place. The OGCI would be the central licencingauthority whereby a register would bemaintained so that the public couldascertain what premises were in factlicenced and what type of licence would be in place. It would have an involvementsimilar to that of the RevenueCommissioners in renewal of licences in that unless objection was received thelicences would be renewed automaticallywithout the need for Court application onthe presentation of the appropriatepaperwork and renewal fees etc. The OGCIwould also have authority to object to arenewal on its own motion.

There should be provision in the legislationdeeming all licences in existence to continuein existence in terms thereof for a period ofsay, four months from the commencementorder of the Act. All licenced gaming andamusement arcades in force at the operativedate would be deemed to have the licencecontinue in force for that four-month periodand during that four-month period ifapplications which are in order are received,gaming/ amusement licences would begranted by the court under the specialterms applicable for existing licence holders.

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It is submitted that an essential element of this process will include provision thatunless there is creditable objective evidenceto the contrary, the number of gamingmachines should remain the same forexisting licencees.

Time will need to be extended for any delay in delivering judgment and or appeal (careful drafting will be needed to ensure that the competing objectscontemplated by the foregoing will be achieved).

As proposed above, once a person/premiseshas been licenced, then the renewal, wherethere is no objection, will be a matter forthe OGCI. Provisions need to be draftedproviding for grounds and procedures forobjection to the District Court. As drafted,the Bill provides for very vague grounds forthe granting or the refusal of a license inthe first instance and of course does notdistinguish between the granting andrenewal (see Head 37).

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(2) Transition (i) Betting: Any licence issued under the

Betting Act and which is in place/current at thecommencement of thisAct remains valid until it expires andthe conditions, terms, duties andliabilities (including proceedings forany breach) under which it was issuedcontinue to apply.

(ii) Gaming: Any licence issued under theGaming and Lotteries Act 1956, andwhich is in place/current at thecommencement of this Act remainsvalid until it expires and the conditions,terms, duties and liabilities (includingproceedings for any breach) underwhich it was issued continue to apply.

(iii) Amusements: Any licence issued underthe Finance Act 1992, Part II, ChapterIII and which is in place/current at thecommencement of this Act remainsvalid until it expires and the conditions,terms, duties and liabilities (includingproceedings for any breach) underwhich it was issued continue to apply.

(iv) Proceedings in train atcommencement under any of the Acts at (i) – (iii) above shall not beaffected by the new Act, i.e. theyproceed to conclusion.

Observation and Proposal As a logical sequituer to the submissionsmade above regarding security of tenure, itis submitted that appropriate arrangementsbe provided to ensure a smooth transitionto a new proposed licencing regime. Havingregard to the number of existing businesseswhich consist of gaming/amusementthroughout the country which have beenlicenced for many years and which is thesource of income and employment of alarge number of persons that constitutionaland EU-protected proprietary rights havebeen established and that these cannot betaken away except where done so, it isproportionate to the aims sought to beachieved and on payment of theappropriate compensation.

It is further submitted that the legislationshould go to the appropriate lengths toensure that these licenced businesses areprotected as they are the bedrock of thegaming industry and that, subject to all theappropriate checks and balances, thesebusinesses should have security of tenure and that the transition to the new regimeshould make appropriate provision forsame.

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Section 4 Head 2 Transition

(iii) Where category 2A and 2B licencesare being operated in the samepremises, or where the 2A licence is ofthe type coming within (i), there mustbe separation between the two typesof machine [gaming, amusement] andthere cannot be any connectingpassages or doorways (even if locked)between the two facilities.

Observation In the past 57 years it has been a legalrequirement for the granting of a GamingLicence that amusement machines beoperated in the same premises as gaming.These have been and still are traditionallyseparated from each other as age restrictionis relevant in the gaming area.

No rationale has been put forward tounderpin this novel provision which flies inthe face of the existing legislation and doesnot accord with what exists at this time inthe various premises which are licenced forgaming under the 1956 G&L Act.

The members of the LGAI are not aware ofany particular reason for this fundamentalchange in theory and practice. The 57existing businesses which consist ofgaming/amusement throughout the countryhave been constructed and/or laid out tocomply with the existing law. It is the casethat there is in place at all of these premisesappropriate arrangements to ensure thatyoung persons can have access to theamusement machines and cannot haveaccess to the gaming machines. The

premises normally have access between the two segregated areas so that the staff of the licencee can properly regulatethe businesses. These staff constantlymonitor the areas in question to ensure that there is no underage gaming by reason of the access. The members of the LGAI are not aware of any level of concern from the Garda Authoritiesregarding underage gaming because of the premises layout described. It is also the case that it is highly desirable that aperson engaged in gaming would have the opportunity to intersperse his gaming activities with time spent atamusement machines.

If the present wording of paragraph (6) (iii)of Head 17 is not altered it is highly likelythat many of the existing 57 licence holderswill have to either close one or other of theareas, move to a new premises or indeedcarry out substantial works (if possible) totheir existing buildings. This will involveextensive civil works, planning permission,landlords consent, additional works tocomply with two new fire certificates,additional works to comply with two new disability certificates, additional toilets, additional staff areas etc. Thereforethese may not be either physically orfinancially possible.

Again no theory or rationale has beenadvanced for the fundamental changesproposed and no debate on the possibledetrimental effect on existing businesses,has taken place.

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Section 5 Head 17 – Part 6 (iii) – Segregation ofgaming and amusement machines

It is submitted that having regard to the 57 existing businesses which consist ofgaming/amusement throughout the countrywhich have been licenced for many yearsand which is the source of income andemployment of a large number of persons,constitutional and EU protected proprietaryrights have been established and that thesecannot be taken away except where doingso, it is in the public interest, it isproportionate to the aims sought to be achieved and on payment of theappropriate compensation.

Proposal It is proposed that existing and futureGaming licence holders would be obliged to operate a supervised access-controlleddoorway to separate amusement andgaming areas and any new arrangements be implemented for future premises as partof the planning process. These segregationarrangements in the existing licencedpremises could be certified by a suitableperson (eg architect) and submitted as part of the licence application process.

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The members of the LGAI adopt withapproval the detailed analysis andrecommendations of the Casino Committeein this aspect of providing suitableparameters for gaming in the area of stakesand winnings. As identified in the Report of the Committee and which is publicknowledge, the present maximum for agaming machine is the equivalent 6d for astake and 10 shillings for a prize. This is sofar out of date that it is not being adheredto and to reinstate the credibility of thelegislation and enforcement it is submittedthat the maximum stake and the maximumwin as set out in Table 14 at page 86 of the

Casino Report, that is to say a maximumstake of €5 and a maximum prize of €5,000 should be provided and that theseshould be initially fixed by statute. It is the case at this time that people can betand win dramatically larger amounts ofmoney in horse racing, bingo, lottery, onlinesports betting and even online slot machines. The more realistic amountssuggested will result in a situation that the licenced gaming operators can compete in a fair way. There could beprovision that increased amounts could be provided by statutory instrument after appropriate consultation.

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Section 6Stakes and Winnings

Extract from definitions (p.7)Gambling Control Bill “amusement machine” means

(i) a mechanical, electrical or electronicmachine or device, operated by theinsertion of a player card, a coin, atoken, a credit or debit card or by the use of credits,

(ii) being a machine that is intendedexclusively for amusement purposes,

(iii) where, if the player obtains anythingrepresenting money, goods or anyother benefit other than theopportunity to continue to use themachine, it is of nugatory value.

Observation The definitions at (ii) and (iii) above maywell be contradictory and do notadequately reflect what exists at present .An amusement machine that is intendedexclusively for amusement purposes shouldbe defined as a different category anddistinct from an “amusement with prize”machine on which one can obtain a benefit representing money.

This distinction was highlighted in thereport of the Casino Committee Section4.6.29 (below) and where the Committeesuggested definitions as listed below.

4.6.29 In drafting gaming legislation,the potential confusion between‘amusement machines’ and ‘AWPmachines’ must be given carefulconsideration. One matter requiringfurther deliberation is how thegaming regulatory authority should

provide for the novelty ‘redemption’machines, cranes and coin-pushermachines. These machines are knownto many members of the public asamusement machines and arecurrently available to all, regardless of age. If the gaming regulatoryauthority is to treat these noveltymachines as AWP ‘gaming machines’then they are to be permitted only in licensed gaming arcades and notamusement halls. If they are to betreated as ‘amusement machines’ then legislation will need to providefor the means to host such machinesin amusement halls. ‘Amusementmachines’ and ‘AWP machines’ aretwo separate entities. Ireland’s current legislation does not providefor this fact. With further explorationand analysis separate legal definitionsmay follow along. The currentdefinitional overlap, however, should be acknowledged andunravelled accordingly.

ProposalIt is proposed that the two definitionsnamely “amusement machines and“amusement with prize machine” contained in the report be adopted in terms or their content and implementationas set out below.

‘Amusement Machine’ means a mechanical,electrical or electronic machine or device,operated by the insertion of a coin oramusement machine token or by the use of credits, which is intended exclusively foramusement purposes and not for gambling

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Section 7Definition of an Amusement Machine

purposes and from which the player can obtain nothing representing money,goods or any other benefit other than theopportunity to continue to use the machine.

‘Amusement-with-Prize(s) Machine’ meansa mechanical, electrical or electronicmachine or device, operated by the

insertion of a coin or token or device or by

the use of credits, which is intended for the

amusement of the player only and from

which the player can obtain a monetary

prize (max. €10) or goods to the value of

(max. €20) e.g. crane amusement machines,

pushers, redemption machines.

17



Observation The rationale and definitions in Section 6(page 15) should be applied for the currentcommercial operation of a modern familyamusement arcade which is outlined indescription of the machines in Section 2.2. (page 6).

ProposalIt is proposed that the definition shouldread “fixed facility providing amusementand amusement with prize machines, opento adults and young persons”

Reference is made to the submissions setout hereafter regarding the prohibition ofgaming in book-makers offices, liquorlicenced premises or in take-away outlets. It is submitted that amusement machinesand amusement-with-prize machines couldproperly be permitted and licenced.

Other definitionsWe would maintain that all otherdefinitions be made totally robust in orderto prevent the circumvention of the law.

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Section 8Granting of a licence 2B –

Amusement Hall or Arcade page 83 of Gambling Control Bill 2013

Under a Category 2A Licence the openinghours are set out as follows:

“(i) from 1 May to end Sept, – not before10.00 and not after 1.30am (ii) rest of theyear, not before 10.00am, not after 12.00midnight”

Under a Category 2B Licence the openingtimes are that of the same as that of acategory 2A Licence above however are set at 10.30pm and 9.00pm respectively.

As previously outlined the Licenced GamingAssociation members have adhered to theopening hours laid down by the courtswhile their unlicenced competitors have had no such restriction and indeed many of which operate 24 hours.

ProposalIt is submitted that these times are toorestrictive and that current generaloperating for a 2A (current Gaming Licence)opening times of 10.00am and closing timeof 2.00am should continue to the existinglicence holders specifically because these

are the times that are currently operatedand licenced by the court and to which they have scaled their business over pastdecades. It is also important to point outthat the commercial turnover time slice of 11.00pm till 2.00am, specifically onweekend nights in the operating business is pivotal to the commercial viability of theindustry. Additionally on a case by case basis there is provision for the OGCI to grant a seasonal extension to allow forfestivals and other activities associated with holiday/leisure and seaside locations. It is also important to point out there is noalcohol available and it provides a welcomealternative of late night entertainment.Additionally, the fact that main commercialcompetition comes from the same machinescan be played online 24 hours a day shouldbe taken into consideration.

It is also proposed that the closing time for a 2B licence should be 10.30pm all year round with the additional facility togrant a seasonal extension to allow forfestivals and other activities associated with holiday/leisure and seaside locations.

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Section 9Head 17 – Opening Times for

types of Licences and p82-83 of Bill for opening times

It is submitted that the gaming machinesshould be absolutely prohibited inbookmakers. The Report of the CasinoCommittee considered this issue in greatdepth and the comments of the Committeein recommending that gaming and bettingbe treated as two completely separate typesof gambling activity are couched in thestrongest terms to be found in the report.

Reference is made to page 82 of the reportwhere in making of this recommendation at paragraph 6.6.6 it says:

“the Committee recommends that“gaming” and “betting” be treated as two completely separate types of gamblingactivity, which raise very distinct regulatoryissues and which should be treatedseparately in any regulatory arrangement.The Committee considers that this isfundamental for the regulation of gaming.The Committee recommends that thereshould be no betting of any kind permittedon or in any licenced gaming premises.Likewise there should be no gaming activityof any kind permitted on or in any bettingor bookmakers’ premises” :

The report continues at page 83 identifyingreasons for the strict regulation of gamingmachines by confining them to gamingarcades. For example, at paragraph 4.6.11 itwill be noted that the Casino Committee“strongly opposes to the spread of gamingmachines into a betting environment”. Thereport at paragraph 4.6.12 identifies thatthere are approximately 1,170 bookmakers

in the state and the prospect of gamingmachines or FOBTs in bookmakers offices,even if limited to a maximum of four peroffice as in Great Britain, has the potentialfor serious repercussions in terms ofproblem gambling as identified by studies innumerous other jurisdictions whereproliferation of gaming machines ispermitted. The proposed regulatory regimeof permitting these in the Draft Bill is notsupported by any studies or articulation ofpolicy or principle.

The public policy issues have been identifiedby the committee at paragraph 4.6.14 atpage 84 of their report.

4.6.14 The public policy issues around theplacement of FOBTs in bookmakers’ officescan be summarised under five headings:

(a) Social The placement of such machines in anunregulated environment such as abookmaker’s office is socially undesirablebecause there is ample evidence thatpermitting the proliferation of suchmachines outside of gaming arcades maygive rise to negative social consequences.

(b) TaxBookmakers attract a favourable tax rate of 1%. Gaming, worldwide, attracts ahigher tax rate.

(c) Planning The possible planning consequences arisingfrom the placement of such machines in

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Section 10Head 17 Licence (2G) Gaming Machines in Bookmakers page

83-84 of Bill

bookmakers’ offices and the conversion of those offices to combination betting/gaming arcades were not considered by the Committee during their deliberations.The question therefore arises as to whethersuch activities might constitute a change ofuse under the planning regulations.

(d) Regulatory If bookmakers can engage in gaming then,logically, gaming establishments should bepermitted to engage in betting. Gamingand betting require different regulatoryapproaches.

The Committee is of the view that theseactivities should remain separate for thereasons that are outlined in this report.

(e) Political It is undesirable that such sweeping changes should be made to public policy,with potentially significant adverse socialconsequences, in the absence of appropriatedecisions on these matters by the Executiveand the Oireachtas.

The Casino Committee stated its opinionthat FOBTs (now somewhat superseded byelectronic gaming machines) are to betreated as gaming machines and should not be permitted in bookmaker’s offices and that gaming machines be permitted in casinos and gaming arcades only. Theyshould not be permitted in shops, take-aways, restaurants, hotels, public houses or any other premises. The placement ofsuch gaming machines outside of a tightly-regulated environment is notdesirable and may give rise to socialproblems as well as a proliferation ofmachines which it will be impossible toregulate or control.

ProposalsThat gaming machines should not bepermitted in bookmarkers offices,therecommendations made by the CasinoCommittee detailed above are fullysupported.

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The factual position “on the ground” at this time is that there is widespread gamingcarried on by the use of gaming machines in a variety of different manners. Some ofthe gaming machines are in large scalecommercial premises where upwards of 500gaming machines are in open use every daywhich is completely contrary to the existinglegislation. In this regard, it is astoundingthat the law is not being enforced and, ashas been identified by the CasinoCommittee, this brings the enforcement oflaw generally into disrepute. It also militatesagainst other persons complying with thestatutory licencing regime and theaccompanying (very significant) level oflicencing fees to be discharged. It furtherpermits unsuitable premises which do nothave the planning/fire officer requirementsof the licensed premises whereby healthand safety incidents may occur which therelevant authorities have a duty to prevent.

It is also the case on the ground that thereare very many gaming machines in licensedpremises, takeaway outlets and bookmakersin direct contravention of the legislation,and to which the same objections andcriticisms can be made.

It is submitted that the thrust of the Billdoes not reflect the findings andrecommendations of the Casino Committeeas set out in their report and no research or other criteria have been articulated tosupport the approach which is in generalcompletely opposite to the

recommendations of the Casino Committeewhereas the recommendations themselvesare grounded on research of informedexperts. In this respect the LGAI are closelyworking with Tiglin who are the nationaladdiction centre and provide “individualswith an effective and comprehensivesolution to life controlling gamblingaddiction problems”(see letter, page 8).Tiglin point out that the allowance of suchgaming machines in premises such as that of bookmakers offices, shops, take-aways,restaurants, hotels, public houses andshopping centres would create anundesirable situation whereby gamingmachines would be available to the mostvulnerable and young people in society.

It is the case that there are three majorconsiderations surrounding the proposedlegislation. The first is that gambling isaddictive and in its extreme cases can bemore damaging to the individual, his familyand society than substance abuse such asdrugs or alcohol. This is so well recognisedas not to require repetition. The secondconsideration is that gambling, onceproperly regulated, can be an enjoyableleisure activity for persons. The thirdconsideration is that the gambling industryis a dynamic industry and a balance must be achieved between, providing such anindustry and protecting young andvunerable persons.

As regard the gaming industry therefore itis essential that only suitable persons and

22



Section 11(Head 17) also see page 80 of

Bill “Licences that may be issued” 2E, 2F and 2G Licences P.83-84

places are available for gaming. At this timemost of the licenced gaming arcades are inholiday/leisure destinations. Another aspectof the control/regulation requirements canbe gleamed from an examination of thenature and extent of objections made by An Garda Síochána where there areapplications for new licences. It is the casethat An Garda Síochána have identified thatit is improper to set up gaming arcades indeprived or marginal areas and havepersistently and successfully objected tosuch licences.

The new act should make provision forproper assessment for the granting of newgaming licences (as well as for the renewals)and this guidance will have to identify all of the relevant issues.

Also against this background the provisionsof the bill permitting gaming machines inbookmakers, public houses, takeaways andpublic places runs completely contrary tothe recommendations of the CasinoCommittee and it is submitted are contraryto the proper regulation of the industry.Apart from anything else, the operation ofsuch machines will not be regulated by

experienced persons conscious of thepossible attendant problems with gamblingas outlined above, it generally offendsagainst all of the underlying principles andfindings of the proper regulation of thegaming sector.

Reference is made to paragraph 1.5.17 of the Casino Report where therecommendation is unambiguously infavour of not permitting gaming machinesin betting offices and to quote as follows:“The Committee recommends that gamingmachines (GMs) should only be permitted in the licensed environment of a casino orgaming arcade. In addition to not beingpermitted in betting or bookmakers offices,gaming machines should not be permittedin shops , take-aways, restaurants, hotels,public houses or any other premises.”

ProposalThat gaming machines should not bepermitted in shops, take- aways,restaurants, hotels, public houses, shoppingcentre concourses or any other premises (see Section 6, page 15).

23



Under Head 38 of the bill where anapplicant’s application for a licence isrefused his only recourse is by appeal to theChief Officer of the OGCI where his decisionwill be that of either deeming theapplication valid or invalid and that nofurther appeal shall be available other thanon a ”point of law of exceptional publicinterest to the High Court”.

This may be unconstitutional. Reference ismade to the recognised legal structure in

place for Intoxicating Liquor licences andthe submissions at Section 3 (page 9) and byextension Section 4 (page 12) are repeated.The licencing process should be anapplication in the first instance to theDistrict Court and thereafter by automaticrenewal by the OGCI unless an objection ismade where the decision process will be inthe District Court (and on appeal to theCircuit Court).

24



Section 12Head 38 – Appeals against decision

to reject application

Observation and proposalThis part of the Bill contains a detailedregime which it is submitted is not anappropriate regime of monitoringenforcement and prosecution. It is the case at this time that there has been failure of enforcement of the existinglegislation to the extent approximated atSection 2.1 (page 6). It is submitted that there is no realistic prospect of enlisting a sufficient number of authorised officers to inspect and monitor the number ofpremises and the number of machines in those premises in an efficient or effective manner. Not only would they be required to inspect and monitorpremises/machines which would be licenced but they would be required to carry out sufficient investigations andenquiries to ensure that unlicenced gaming was not being carried out in any other premises.

This duty would only be part of the overallsuggested monitoring and compliance remit of the OGCI.

It is submitted that there is no realisticpossibility of recruiting and training thelarge number of persons that would berequired. There is also the case that, apartfrom inspections etc mentioned above, it would be necessary to put in place asufficient number of persons withlegal/prosecutorial skills in order toimplement enforcement (which should be through the courts in any event).

There already exists within this State anefficient investigation body namely AnGarda Síochána. They extend to all quartersof the state and have widespread localknowledge including skill and experiencewhich cannot efficiently be transferred tothe central body, namely the OGCI ascontemplated. It is submitted that there is no possibility that the OGCI could possibly provide a suitably-effective regimeof constant inspection and enforcement of gaming. Having regard to the existingfigures mentioned above regardingunlicensed gaming, (page 6) it would bequite impossible to police the gamingindustry as contemplated by the OGCI. It is also the case that there should be animmediate power of seizure andconfiscation of unlicensed gaming machinesor gaming machines being used in anunlicensed premises. Again this could only be carried out effectively by theinvolvement of police with the necessaryresources and experience in this area ofenforcement. In addition to the detectionand summary enforcement such as seizure,there needs to be the possibility of summaryprosecutions in all the courts of Irelandstretching from Castletownbere to MalinHead. There is already in place within theDPP’s/local state solicitors prosecutionservice the competence and resources to carry out these prosecutions.

There is also the issue of respecting thestatutory prosecutorial role of the DPP and the involvement of his office.

25



Section 13Head 54-58 Monitoring

and Compliance

It is noteworthy that the Gaming Bill hasfailed to deal with a fundamental aspect ofthe present licencing/regulatory regime ongaming, that is to say that no gaming shallbe permitted in any county or countyborough unless the local authority resolvesunder Section 13 of the 1956 Act to adopt itfor that area. Section 13 therefore allows alocal authority to adopt Part III of the 1956Act by resolution in respect of the whole ora part of its administrative area and mayalso by resolution rescind such resolution.This is dealt with comprehensively in theCasino Committee report at paragraph2.4.1. The comments regarding thevulnerability of people and gamblingaddiction in the report are also relevant.

Clearly the process where a local authorityprohibits gaming machines must notunfairly discriminate against persons whowould wish to avail of gaming or have agaming business in a particular area whichobjectively would not be objectionable onany measurable criteria.

The Casino Committee have clearly

identified that there is considerabledifficulty in identifying what persons wouldbe best placed to decide on a prohibitionthat having taken the view that thearguments against the retention of thecurrent powers available to local authoritiesare overwhelming, recommends that thelocal authorities continue to have animportant role but through the planningprocess. The Committee identifiessignificant difficulties and the requirementfor significant changes in legislation for that to be effective. A number of possibleyardsticks are identifiable in the report and it is submitted that these yardsticks are too general to be the basis for anapplication and that until such time as more specific criteria are identified, thengeneral principles should be enunciated in the Bill and these should be the basisupon which the courts can grantapplications, and possibly if change of user or planning permission is required,these could by statute be the necessaryingredients for the grant or refusal of a planning application.

26



Section 14General Observation

– Local Authority

(3) In all cases where the table applies, it shall be presumed that the periodsmentioned apply each day of theweek, but that, in each case, thepremises will close for at least twodays in each calendar year and it shallbe further presumed, unless thelicence holder and the OGCI agree to the contrary, that the two days in question shall be Christmas Day and Good Friday.

Observation The 57 licenced gaming premisesthroughout the country are mainly located

in holiday/leisure and seaside locations andfor this reason open on Good Friday as theyoffer entertainment in the form of familyamusements and gaming. In the case ofholiday locations particularly the availabilityof entertainment is paramount to attractingvisitors who support not only the venue butthe locality in general. It is important tonote that no alcohol is available in gaming/amusement arcades.

ProposalIt is proposed that gaming/amusementarcades remain open as they currently do on Good Friday.

27



Section 15Head 53 : Hours of business

Observation Currently many companies market gamblingevents, services and inducements directly toindividuals by way of text, emails and socialmedia.

ProposalThe members of the LGAI are totallyopposed to the direct contact marketingofany gambling events or services by way ofdirect communication to individuals andfeel the prevention of such activity is for theprotection of vulnerable persons from risksto their well-being arising from gambling.

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Section 16Head 73 : Promotions and Gambling

ProposalThe members of the LGAI very muchwelcome the establishment of the fund andacknowledge the purposes of the fund. Wewould very much appreciate theconsideration of the national gambling

addiction centre Tiglin when consideringthe allocation of funding. The LGAI areworking together currently with Tiglin and feel their countrywide services are thebest available.

Section 17Head 77 Establishment of Fund

ProposalIt is proposed that “commercial” bingo nolonger be exempt from VAT on its proceedsof sales.

Section 18Head 20 Bingo Licences

Observation As demonstrated in section 2 (page 6) it isblatantly obvious that the current situationis untenable not only for the existing 57licenced gaming operators but also for theprotection of the public at large andimmediate resolve is needed.

To this end the members of the LGAI totallysupport the idea in the interim period (untilthe new Act is in force) to the establishmentof an interim authority as suggested in 4.17and 4.18 (below) of the Regulating Gamingin Ireland Report in order to bring certaininterim amendments to the currentlegislation to prevent the ongoingsystematic evasion of the law.

These would be specifically to:

• Protect the jobs of the people working inlicenced gaming/amusement arcades

• To stop substantial revenue being lost to the state

• To prevent unlicenced slot machinesbeing operated in unlicenced premises

• To bring clarity to An Garda Siochana,Revenue Commissioners and the localauthorities in relation to the licencingand enforcement of the law in relation to the prohibition of unlicenced slot machines

• Prevent new unlicenced operatorsentering the market

• Prevent unlicenced operators currentlyoperating illegal 24-hour gaming toprotect the vulnerable from risks to theirwell being arising from gambling.

The following parts of the report arequoted with the approval of the members

of the LGAI who submit they should beimplemented without delay:

4.17 The Establishment of an InterimGaming Regulatory Authority

Recommendation: The Committeerecommends that once the Government has established the public policy parametersfor the new regulatory system, it shouldestablish an Interim Gaming RegulatoryAuthority, based within the Department of Justice, Equality and Law Reform, butwith representatives from other relevantGovernment Departments, in order todevelop the regulatory system.

4.18 Proposed Response to Current Developments

Recommendation: The Committeerecommends that the Government send astrong message to those currently engagedin casino-style or other unlicensed gamingactivities to the effect that currentlyunlicensed operators should be advisedthat, in a new and strict regulatoryenvironment, they must not assume thatthey will receive an operator’s licence. Thefact that they are engaged in such activitiesat present will not necessarily, under anynew regime, guarantee them a licence.

Recommendation: The Committeerecommends that the Interim GamingRegulatory Authority which it proposesshould be established to develop theregulatory system, as well as other matters,should review the current position as regardssuch activities with a view to reporting tothe Minister for Justice, Equality and LawReform, and if necessary, recommendappropriate interim amendments to thecriminal law to deal with these issues.

29



Section 19General Observation – Establishment of

an Interim Gaming Regulatory Authority

30



Section 20General

The Draft Bill contains many fundamentalchanges and sometimes vague andcomplicated concepts. The members of the LGAI submit that it should be radicallysimplified to adopt the submissionscontained herein so as to facilitate an earlyoverhaul of the sector in a structuredfashion by adopting best practices alreadyin being in Ireland, clarifying andsimplifying the law, preserving existingproperly-licenced businesses, and addressingillegal operations by permitting them to be licenced where appropriate or closingthem down where thought necessary.

The members of the LGAI and their legalrepresentatives will be pleased to furnish

any further information or clarificationthought desirable and will be pleased toappear in public sessions of committeemeetings if invited.

Dated this 30th day of August 2013

For and on behalf of the Licensed GamingAssociation of Ireland

Brian Freney Chairman

lgai submission on gambling control bill 2013

Documents

gambling page

general page

licence page

winnings page

segregation page

area of gaming

bookmakers page

overview page