Ireland's outdated legislation - problem gambling, slot machine limits and the state of the lottery market
Ireland's gambling market, which operates under outdated legislation, needs radical reform. The problem of gambling addiction, reassessment of legislation and the latest news regarding the operation of gaming machines and the lottery market - read about it all in the material from Login Casino.
According to a report by the irishonlinecasino.net, as of mid-2019 the total annual revenue averaged €7 billion, while the state budget is being directed around €100 million. It is noted that the bulk of the legislation needs to be reassessed, as Ireland's gambling industry is regulated by the Betting Act 1931 and the Gambling and Lotteries Act 1956.
Special attention is given to slot machines - the Irish government has no influence over this area and its regulation and licensing is handled by local authorities and the district courts.
Problem gambling and a review of outdated legislation
The existence of several problems in the Irish gambling industry is indicated by the intention of leading parties to review gambling legislation as well as introduce an independent regulatory body. In particular, the introduction of new systems to control underage entry to resources is indicated. It should be noted that this problem is also relevant for many other countries, where minors can easily bypass age restrictions.
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The changes planned by the liberal Fianna Fáil party are aimed at solving the most pressing problems. For example, gambling limits, advertising restrictions are expected to be implemented, as well as a ban on credit card gambling, lootboxes in video games and the introduction of a "cooling off period" - all indicating that the country has problem gambling and the desire of the authorities to solve this problem through control of betting and advertising. There are also no specific laws in this country that deal with social responsibility, which has an additional impact on the problem of addiction.
Online gambling in Ireland is viewed through legislation created for the land-based market, with the implications of this. Most operators in the online sector are licensed in other jurisdictions, which in turn affects tax payments, cases of revenue laundering and makes it difficult for the government to monitor the market.
With the gradual emergence from quarantine, bookmakers in Ireland will resume operations at the end of June.
According to the latest reports released by the Department of Health, around 67% of Irish adults have gambled in the past 12 months, with scratch cards and lotteries being the most popular destinations. As the Independent.ie points out, as of last year there were around 40,000 problem gamblers in the country at the low end, which is 0.8% of the population, while at the high end it is 2.3% of the population. The existence of gambling addiction can also be judged in terms of the outdated legal system, certain norms of which are formulated under the realities of the middle of the last century and on some issues may not coincide with the current state of affairs.
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According to the latest information, the current legislation does not provide a license for casino activities, which are therefore illegal in Ireland.
The "neglect" of certain legal provisions is evident from the recent proposal to introduce a limit for slot machines and electronic games. The previous time a limit on slot machines was changed was back in 1956. The official reason at the time was the need to modernise the local structure.
Lottery market in crisis
Lottery market, originally state-owned but recently transferred to private hands, operates mainly on behalf of the National Lottery Ireland, EuroMillions and Daily Millon. It is known that the Lotteries Act was amended in 2013 - since then, private businesses have been given new opportunities thanks to the licensing proposals introduced.
In November last year, the National Lottery of Ireland was accused of cutting transfers to local charities. According to Tony Foley, an economist at Dublin City University, Premier Lotteries Ireland (PLI) was the cause. However, with the start of the quarantine the lottery market in Ireland has allocated approximately €16 million from unclaimed winnings to the COVID-19 pandemic fund. In this way, winnings that were not cashed in by draw winners served as a means for the operator to restore its tarnished reputation.
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It is important to know, however, that current legislation requires the lottery to take regular charity initiatives. Relative to the impact of the forced quarantine, the lottery market, particularly the one offering online tickets, has been the least affected. Land-based gambling establishments have been forced to close completely for the period of the self-imposed quarantine, while betting companies' betting lines have shrunk dramatically due to the cancellation of sporting events.
In December a number of experts represented by Michael Collins and Michael Healy-Reay expressed concern over the amendment to bingo, aimed mainly at controlling payments to charities, which could have a detrimental effect on promoters. Under the new rule, no more than 75% of total revenue should be allocated to prizes for participants, while at least 25% should be allocated to charity. David Stanton pointed out that under such a scenario, promoters' earnings would be reduced to zero. Therefore, based on such requirements, it is possible that less than 75% would be allocated to prizes for raffle participants in order to preserve some of the finances, which could change the audience's perception of the bingo industry brand.
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