Gambling Legislation Update

Transcription

1 Gambling Legislation Update

2 Agenda Introduction Overview of the Gambling Control Bill 2013 Current Progress Expected Happenings

3 Introduction This document has no legal effect. It contains proposals for the licensing and regulation of gambling in Ireland. Draft legislation will be prepared on the basis of these proposals, for presentation to the Oireachtas and enactment. Replace Betting Act 1931 and G&L 1956 Fairness, protection of vulnerable, free from crime, consumer choice/protection Minister for Justice Sole licensing authority and regulator Creation of the OGCI Office of Gambling Control Ireland and appointment of Chief Officer of OGCI

4 Introduction Bill may be commenced all together or on more than one date Having a licence does not confer any expectation, entitlement or presumption as to granting of any licence under 2013 Act no grandfather status Applies to all gambling in and out of State offered to persons in Ireland or offered from Ireland

5 Introduction Codes of Conduct and Codes of Practice issued by Minister (with approval and input from Revenue Commissioners and Gardaí) and will invite comments and input (2 to 6 months from circulation) but code will not incur legal action on its own. Compliance standards (sw, maintenance, technical standards, reporting, staffing) May address regional or national patterns of gambling in the public interest, including capacity and number of gaming machines of a class or type. May interact and share information with other regulators internationally

6 Licensing Licence issued may be changed by OGCI if required Will dictate standards of premises, technology/ machines, records/reports, level and competencies of staff, fees, social responsibility requirements, infringements and offences Licences: ALL gambling suppliers and gambling service providers Licence procedure yet to be defined Licence categories: (43 Categories)

7 Licensing Summary Category Activity 1 [A K] [17] Betting land based and remote Category 2 [A W] [23] Activity Gaming land based and remote 1 3 [A [A K] B] [2] [17] Betting Remote land mixed based betting and remote and gaming 2 4 [A [A W] C] [23] [3] Gaming Temporary land licences based and all remote types 3 [A B] [2] Remote mixed betting and gaming 4 * General [A C] rule: [3] Licences required in all cases Temporary where the licences customer is all in types the State, except small scale lotteries see below. * General rule: Licences required in all cases where the customer is in the State, except small scale (b) Registration lotteries see [2 below. categories] (b) 1 Registration Service Facility [2 categories] in the State The facility supports a service which is not available nor availed of in the State 12 Service Suppliers Facility in the State The Suppliers facility of supports machinery, a service services which to the is not gambling available industry nor availed of in the State 2 Suppliers Suppliers of machinery, services to the gambling industry

8 2. 2. Types of of licence, per category Licensing Summary Category 1: 1: Betting the the basic licences licences 1A, 1B, 1C, Land based bookmakers 1D Land based but but with with some some remote service service 1E, 1F Remote Remote betting betting 1G 1G On-course On-course betting betting 1I, 1I, 1J, 1J, IK IK Betting Betting exchanges, exchanges, pool pool betting, betting, spread spread betting betting Category Category 2: 2: 2A 2A Gaming Gaming arcades arcades Gaming Gaming the the basic basic 2B 2B Amusement Amusement centres centres licences licences 2C, 2C, 2D, 2D, 2F 2F Gaming Gaming at at festivals, festivals, etc. etc. 2H, 2I, 2J, 2K Lotteries* 2H, 2I, 2J, 2K Lotteries* 2L, 2M, 2N Bingo 2L, 2M, 2N Bingo 2Q Remote bingo 2Q Remote bingo 2R Casinos** 2R Casinos** 2O, 2P Remote gaming 2O, 2P Remote gaming 2S, 2T On ships 2S, 2T On ships 2W Tournaments 2W Tournaments * Some small scale lotteries exempt from licensing requirement (see Head 19(2)). Some small scale lotteries exempt from licensing requirement (see Head 19(2)). ** Casino games permitted in casinos (licence 2R) or by remote means (2O, 2P). ** Casino games permitted in casinos (licence 2R) or by remote means (2O, 2P).

9 2W Tournaments * Some small scale lotteries exempt from licensing requirement (see Head 19(2)). ** Casino games permitted in casinos (licence 2R) or by remote means (2O, 2P). Licensing Summary Category 3: Where remote services include gaming and betting 3A 3B Where service provider is in the State Where support facility is located in the State Category 4: Temporary licences 4A 4B (i), (ii) Betting or gaming, unforeseen development Special events and circumstances Hybrid / Cross-over licences 2E 2G Limited gaming in catering outlets, bars Limited gaming in betting shops Personal licences* 1H Betting 2U Casino 2V Gaming 4C Temporary * The requirement to have a personal licence will depend on the nature of duties.

10 Licensing Detail - Betting Cat 1A Bookies up to 3 premises (3 yr) Cat 1B Bookies of 4 to 10 premises (3 yr) Cat 1C Bookies more than 10 premises (3 yr) Cat 1D Bookie with <25% of turnover remote (3 yr) Cat 1E Remote Betting Service for consumers in Ireland (2 yr) Cat 1F - Remote Betting Service for consumers in Ireland and company based in Ireland (2yr) telephone and electronic Cat 1G On course Bookie (3 yr) Cat 1H Personal Bookies licence (1 yr) Cat 1I Betting Exchanges (2 yr) Cat 1J Spread Betting (2 yr) Cat 1K Pool Betting (2 yr)

11 Licensing Detail - Gaming Cat 2A Gaming Hall/Arcade with <20% remote business (3 yr) 10am to 1:30am May to Sept, 10am to midnight rest of year Cat 2B Amusement Arcade open to young persons (3 yr) same opening as before but close at 10:30 and 9pm (can exist on same premises as 2A but with separate entrance, not internal) Cat 2C Funfair/Circus (up to 1 yr) no gambling by U18 s Cat 2D Short term gaming facility (up to 3 months) festivals Cat 2E Gaming in catering outlets (1 yr) Cat 2F Gaming in a public place (2 yr) Cat 2G Gaming in betting shops (up to 15% of turnover or up to 40% with remote) but no cash transactions for remote gaming

12 Licensing Detail - Gaming Stakes & Prizes To Be Defined, however;

13 Licensing Detail - Lottery Cat 2H Lottery linked to charitable or philanthropic cause, min of 25% of sales (sales are value of tickets in draw whether paid for or not) allocated to charity, 120k max prizes annually (2 yr) Reporting every 3 months Cat 2I Lottery with 50k per week or 250k per month (2 yr) includes consultation with local Gardaí OR Lottery in excess of the above up to 400k per month (1 yr) minimum of 25% of sales (sales are value of tickets in draw whether paid for or not) allocated to charity (OGCI may dictate prize funds and licence fees on case by case basis) Cat 2J Lottery for commercial promotion free to customer Cat 2K Scratch Cards (1 yr) max 1750 prize, 120k max pa, 25% to charity

14 Licensing Detail - Bingo Cat 2L - Bingo with prizes up to 8k per month (2 yr) Cat 2M Bingo with prizes up to 25k per month (2 yr) Cat 2N - Bingo with prizes up to 50k per month (2 yr) max 500k pa (but an order may be given by OGCI for higher prizes on case by case basis)

15 Licensing Detail - Casino Cat 2O Remote casino (2 yr) Cat 2P Support service for Remote Casino (2 yr) Cat 2Q Remote bingo (1 yr) Cat 2R Casino (10 yr) Cat 2S Cruise Ships (1 month) Cat 2T Ferries (1 year) Cat 2U Personal Casino (1 year) Cat 2V Personal Gaming (1 year) Cat 2W Gaming Tournaments (1 Week)

16 Licensing Detail - Other Cat 3A Remote Gaming & Betting (2 yr) Cat 3B Remote Gaming & Betting Support (2yr) Cat 4A Unforeseen betting or gaming (3 months) Cat 4B(i) Special Events up to 5 days (1 week) Cat 4B(ii) Hosting Professional Tournaments (1 week) Cat 4C Temporary Personal Licence (1 month)

17 N.B. Licences may not be linked or shared unless approved by OGCI in advance and conditions may be attached Implications for linked progressives, linked bingo and wide area gaming

18 Considerations - Will consult with Gardaí in advance of licence issue and seek H&SA, Fire and local law certification - require notification of frequency of bingo sessions - max players per session - times - public order compliance - where licence is held by a charity 25% min goes to charity - OGCI may limit licences in a locality - OGCI will consider links between bingo/charitable purpose and local charity - OGCI may attach any special conditions it deems appropriate

19 Considerations - An Order may be made following receipt of a request from OGCI stating its position on the suitability and location of the venue, the impact on other amenities, local demand, and other relevant considerations. - Minister may adjust prize maximums after three years of operation for 4 year intervals (subject to above considerations) - It will be an offence not to keep detailed records - Licences may be adjusted mid term to increase or vary gaming devices or tables - A national Register of gambling licencees shall be created and published online excluding commercially sensitive information

20 Licence Holders Any person or entity may apply for a licence Licencees on behalf of companies will be held responsible equally with company Fit and proper person (legal description) May hold multiple licences If casino licence (Cat 2R) has bar licence same licencee has to have both licences (except for temporary events)

21 Licensed Premises Will require minimum standards set by OGCI for integrity of service (may close premises for 7 days to remedy compliance) including Ensuring ALL services offered are suitable Financial Viability and Liquidity Social Responsibility provisions Will require proof of adequate insurance, H&SA and Fire certification Licences are non transferable unless OGCI approves Have to advertise licence applications in newspapers (2 cols by 8cm min or 2 cols by 10cm in broadsheets)

22 Licence Applicants Indicate category, location(s) with map(s) and floor plan Name, position, previous gambling history Company structure (inc links to other companies), registration, audited accounts, tax clearance certificate, proof of employees social security deductions and lodgement, banking details Planning permission compliance (no licence issued without planning) For casinos (Cat 2R) floor area for tables and external signage plan Games and services provided Equipment for use by customers Details of type and number of equipment Capacity (Stakes, prizes) and functions Maintenance schedules/arrangements Calibration certification (issued by approved body)

23 Licence Applicants Staffing levels and structure Regular operational review/compliance statement submitted to OGCI Details of security providers and their registration with PSA Related or conflicting interests Any interest that may financially benefit or enhance value or provide paid service to licencee for compliance Includes spouses, civil partner or adult children of applicants OGCI will determine interest but it may not necessarily affect licence being issued Convictions to be declared from any jurisdiction, but may not necessarily cause refusing of licence

24 Licence Process Written, standard form May have oral hearings if needed and assessor for OGCI (might not be an employee of OGCI) will preside and report Assessors will carry out reasonable checks and may seek additional information and may be assisted by other statutory agencies and other regulators May be rejected on grounds of insufficient information, grave convictions, financial or taxation shortcomings or ANY issue that may cause concern to OGCI and will not be reconsidered unless formally appealed

25 Licence Assessment Policy Directives of Minister Primary Purposes of Licence Gardaí submissions Planning authority views (if any) & Third Party views (if any) Competition law requirements HRI/Bord na gcon views (for Cat 1G) Any other relevant matters For Casino (Cat 2R licences); Geographic distribution Population density Ease of access to location of applicant Competition issues

26 Licence Issuing Decision May be granted with terms and conditions Partial grant licence Reject licence in full Will publish licence issuing in newspapers and shall indicate appeals can be made to District Courts

27 Licence Appeals Any applicant may appeal a decision not to grant Any third party may appeal a decision to grant Gardaí may lodge an appeal to grant Decision on appeal within a month No further appeal to OGCI except on point of law to High Court which may redirect OGCI to review Does not prevent another application District court may uphold, vary or overturn OGCI decision District court may make orders for costs

28 Personal Licences Manager of premises or business, Finance officer, accountant or compliance manager Croupier or person managing table games (pit bosses etc.) Any other person the OGCI deems have authority or influence on licensed service Service licence holders may not hold personal licences when personal licence directly operates or supervises games/machines OGCI will have a complaints service for customers about personal licence holders and will investigate directly OGCI may grade personal licences to reflect managerial duties or not Applications direct to OGCI and not via licence holder Supply personal info, immigration compliance, employer, location, duties, qualifications, experience, detailed employment record, relationship (if any) to licence holder (business, personal or family), convictions, company law orders, tax clearance, bank details, medical history (substance abuse), other licences held (Liquor or Auctioneering or PSV)

29 Licence Fees For receipt/processing of applications & Lodging of appeals Licence award fee & Registration fee May charge supplementary fees; Per machine, Per table, Per terminal, Per game and Fixed fee per premises May be charged higher fee in location where OGCI feel it is merited (depending on location, population, potential earnings, capacity of business to carry a higher fee or any other relevant factor) Fees determined by Complexity of assessing applications Resources require to assess application Subsequent compliance and enforcement Relative benefits that may be gained by licencee OGCI may revise fees any time

30 Licence Securities OGCI may require a bond in such form and amount it determines to be lodged in an Irish bank Security may be called upon for fines Only OGCI may release bonds and will maintain a register of securities

31 General Licence Terms & Conditions Non compliance are grounds for revocation OGCI may restrict or prohibit certain machines or activities in the public interest and may apply to all or some venues by type or class, it may include Machine number limits, Terminal number limits, Type of machine limits (i.e. betting or gaming) Limit hours, Limit stake, bet or fee, Prescribe a method of payment Limits on prizes, Limits on number of successive plays by same player Limit on places where machines can situate Limit on category of premises where certain machines can be situated Permit OGCI unrestricted access to servers, games Require suppliers to furnish information on sales and location of their products No FOBT or machine that is capable of FOBT content, instant revocation of licence and seizure of machine

32 Service Licence Terms & Conditions Duration of licence, Payment of fees Upkeep and maintenance requirements of premises, Hours of business Full, accurate staff details, Provision for staff training Self exclusion and due diligence policies Maintain adequate reserves (liquidity) Full up to date records and accounts, Retention of records for 2 years min Obligation to co-operate with OGCI & provide, where practical, customer receipts Systems for monitoring players whose gambling may give cause for concern & Measures to counteract under age gambling Require to submit reports as required on operations Details of complaints/compensation procedures Retain an office accessible by OGCI for reports/records Details of servers used in any service (if not guaranteed, server location may be specified by OGCI)

33 Personal Licence Terms & Conditions Non transference May be for period shorter than the maximum (1 yr) Prohibition on tips/gratuities/gifts Wear a badge issued by OGCI Notify OGCI of any convictions while holding licence

34 Powers of OGCI Officers Each officer will have a warrant to perform their duties May enter, search and examine any licensed premises or machine May demand name and address of any person on premises May demand production of licence May not enter private dwelling without District Court warrant which may be given on sworn information of officer to court (does not require Gardaí) May question any person on the premises Access to any written or electronic records and get copies May remove anything that constitutes evidence

35 Inspections Will be scheduled annually or more often if needed Will note any infractions and inform licencee May undertake duties outside jurisdiction May be accompanied by Gardaí May be accompanied by other State agencies May prevent access to remote services, restrict advertising and restrict financial transactions (inc freezing bank accounts)

36 Infringements May be dealt with by OGCI or court Licence breach may be regarded as infringement if accidental, unintended or junior staff action where any losses to customers made good, retraining Penalties Oral warning (recorded) Formal written warning Admin fine not exceeding 5,000 Suspension of licence for up to 3 days Second infringement suspension of one week, penalty up to 10,000 OGCI will publish infringments online

37 General Manipulation of outcome Offence to offer inducements to participate in a game Licencee may refuse bets if patterns suggest an offence OGCI will inform Gardaí and any other state agency appropriate Licences may be reviewed, rebuke, revoked and/or fined Cheating Cheating is an offence Immaterial if they win or not

38 General - Safeguards Regular service review to prevent non permitted persons Identify measures to address risks (inc staff training, awareness programs) Outcome of reviews to be sent to OGCI Systems to minimise risks of underage gambling Arrangements to monitor potential problem gambling Arrangements to confirm identity and age of customers Arrangements for verifying player ID and due diligence procedures

39 General Promoting Awareness Take steps to increase awareness of problem gambling and how to gamble responsibly and show risks from misuse of gambling Shall apply to all points of access to service Prominent posters, leaflets and links on websites homepages

40 General Credit No credit to be offered including off set against future winnings Self Exclusion Register OGCI will maintain a register of all self excluded persons Arrangements to be in writing, minimum period of one month, verify identity to OGCI which may make that available to licence holder and only removed by arrangement to remove in writing Subject to data protection laws

41 General - Advertising Only permitted by licence holders & May be subject to future OGCI rules Must never feature children Must never exploit susceptibilities of vulnerable persons Must not appeal to young persons/reflect youth culture Must not be endorsed by youth idols Must not suggest gambling as a rite of passage & be socially responsible Must not portray gambling as a solution to financial concerns Must not suggest enhancement of personal qualities (recognition, admiration or superiority) Must contain a social responsibility message and direct to a source of information May be restricted to watershed hours of broadcast Certain bingo ads may be permitted at any time, except during childrens or youth oriented programming

42 General - Advertising Promotions Only permitted on day when it applies Each shall contain an OGCI approved warning on risks of gambling and information sources for problem gambling Sponsorship Only events appealing to over 18 s No teams or individuals under 18 or appeal to same group Branded merchandise not to appeal to under 18 s

43 Complaints & Compensation Each licence holder will commit resources to fund and operate a procedure for processing complaints (may be individual or shared fund) Monetary penalty for non contribution (1/52 of licence fee, after 4 weeks suspension of licence) No further action can be taken by a customer compensated by this fund

44 Social Responsibility A committee on responsible gambling will be established One nominee of Minister for Social Protection, voluntary/community sector, HSE and 2 from licence holders Chaired by Chief Officer of OGCI Social Responsibility Fund Contributions from licence holders will fund it from a percentage of turnover To promote socially responsible gambling and assist counteracting ill effects on society, may include education, awareness programs, research, treatment programmes, production of materials Fund administered by OGCI and allocate funding May be revoked if one or more funds has been established by licencees subject to all contributing and it meets purposes and secured for at least three years Licence may be suspended for non contribution

45 So when is all of this going to happen?

46 Nobody knows. Aspiration by government to have legislation in place before the end of this government term. April 2016.

47 Current Progress Draft paper published as discussed in this presentation Committee consultations/oral hearings received Report sent to government with 8 primary recommendations Clarify licensing regime Charitable self funding, review lottery limits Review independence of regulator Review regressive definitions Clarify social gambling fund operation Define social exclusion register further Consider limitations on Ministerial powers regarding large scale developments (i.e. Resort casinos) Review virtual betting, consider banning it

48 Expected Happenings Bill now officially in draft was planned for publication in Sept 2014, now mooted for Spring 2015 (owing to legislative calendar restrictions) However, this will only be primary enabling legislation Light on detail, left for regulator to define May have some immediate positives; (e.g. removal of local authority powers to rescind any part of the Act but will have little specifics for current operators) Lottery Regulator to be appointed in Q (may assume control of Gaming and Betting post legislation in 2015) Calls for an interim regulatory authority from industry but may be superseded by actual legislation negating need

49 Expected Happenings OGCI expected in mid 2015 to start with defining finances of its operation and what it will need from industry OGCI will be cost neutral to government 100% funded by the industry Until it has defined this, it cannot set licence fees Definition of what is gaming, what is betting and what is amusement? Crossover period/compliance Period TBD for existing operators Licence date granting to licence date expiration is expected to be notice given to comply with new definitions

50 Unknowns Definition of who pays what OGCI fees and how often TBD Definition of stakes and prizes TBD Definition of who can get a licence TBD Definition of tax, betting duty or MLD TBD Parameters for machine density TBD Parameters for venue locations TBD Parameters for reporting & compliance TBD Parameters for suppliers registration/approval TBD Parameters for social responsibility TBD quite a lot to be defined!

51 Conclusion There is a lot of debate to be had, lots of lobbying to be done and lots of definitions to be enhanced and contributed to Present operators should not see any effect on their business until late 2015 to late 2016 with lots of notice given This is an inclusive process with no favoured or inside track for this legislation It will be a clear, transparent and inclusive process It is proposed to be an example of best practice globally with regulation and not prohibition being the operative term However, no one has an entitlement to anything under a new legislative framework

52 Questions? John Purcell Managing Director Purcell & Associates 16/17, South Terrace, Cork, Ireland. T: +353 (0) E: one of the leading sources of consultancy expertise in the gambling industry.