This article was originally published in World Online Gaming Law Report, 7(7), July 2008.

The Irish Minister for Justice, Equality and Law Reform recently published a report of the Irish Casino Committee which recommends that Ireland regulate remote gaming. Áine Matthews, an Associate Solicitor with LK Shields Solicitors, examines the reasons for the Committee's recommendations and the possible timeline towards regulation.

The long awaited report of the Irish Casino Committee, entitled 'Regulating Gaming in Ireland', was finally published by the Irish Minister for Justice, Equality and Law Reform on 10 July 2008. In truth, the report contains no real surprises for remote gaming operators and is merely a precursor to more substantial change in the area. In effect, it is the Irish equivalent of the UK's Budd Report, which was published in 2001. Ireland is really only now catching up with other countries that have attempted to regulate the remote gaming area and Ireland really should have tackled this situation earlier. However, the purpose of this article is to examine the recommendations of the report concerning remote gaming.

Out of a total of 32 recommendations in the Report, four relate to remote gaming and they are listed below.

1. The Committee recommends that a regulatory system be established for remote gaming in Ireland. A full impact study, a technological assessment and industry analysis should be carried out. EU and worldwide implications as well as issues pertaining to access to services of minors and other vulnerable persons should also be considered.
   
   
2. The Committee recommends that work should commence on the development of a separate regulatory framework for remote gaming, under the same regulatory authority as terrestrial gaming. The Committee notes that while the objectives and principles attached to the regulation of both remote and terrestrial gaming remain the same, the means of achieving them differ considerably.
   
   
3. The current state of development internationally of regulation of remote gaming, particularly the recent United States prohibition of payment mechanisms for gambling online, presents a window of opportunity for Ireland. The Committee recommends that the appropriate regulatory authority (in conjunction with other relevant Government Departments) address the consequential regulatory challenges and provide a socially responsible and secure arena for the development of remote gaming based in Ireland. Should this opportunity be grasped within the appropriate timescale, Ireland, as a gaming friendly centre of excellence, can reasonably expect to attract a reasonable portion of this dynamic industry, therefore yielding significant synergistic benefits as well as employment opportunities.
   
   
4. The Committee recommends that any development in remote gaming must be strictly regulated to protect the vulnerable, prevent criminals from entering the market and ensure that being licensed in Ireland is a trustworthy seal of approval for e-gaming customers throughout the world. Such strict regulation is in the long term interest of the better remote gaming operators as well as the State. Further discussion with the Minister for Finance regarding possible competitive taxation rates and with other Government Departments is necessary to advance such a proposal.

The Committee's approach has been simple and pragmatic and recognises that the remote gaming industry is here to stay and that regulation is preferable to prohibition. The Report summarises regulatory systems from various different jurisdictions and while no particular regulatory model is preferred, it is clear that Ireland can and will take advantage of previously tried and tested models. However, the Committee recognises that such a review merely scratches the surface of the complexities involved - both technological and legal - but such a review does nevertheless provide the requisite definers, legal principles and market dynamics which need to be taken into account in proceeding with the identification of a model suitable for remote gaming in Ireland.

The Report recommends that work should commence on the development of a separate regulatory framework on remote gaming under the same regulatory authority as terrestrial gaming, in recognition of the fact that the means for achieving the regulatory objectives of terrestrial and remote gaming differ considerably.

The Irish Minister for Justice, Equality and Law Reform, in announcing the publication of the Report, stated that it would be necessary to 'take account of international developments and examine, in particular, the experience of the United Kingdom which has recently enacted the Gambling Act 2005 and established a national regulator - the Gambling Commission'. While the Minister was not referring specifically to remote gaming, there is every reason to suspect that Ireland may be influenced by the UK licensing model.

No examination of the remote gaming area would be complete without touching upon the US treatment of remote gaming. The Committee encourages the Irish Government to take advantage of US prohibitions on remote gaming and refers to it as a 'window of opportunity for Ireland'. The Report states: 'Ireland, with its open economy balanced on the periphery of Europe is ideally positioned to offer itself as a socially responsible and secure arena for remote gaming. This is certainly the case given recent events in the United States where certain payment methods have been banned for gaming on the internet.'

The Report recognises that in light of the situation in the US, it is quite possible that much of the world's remote gaming business will in fact be based in European jurisdictions. In a time of economic uncertainty and for a country that has largely built its success on attracting foreign investment, Ireland may very well become the land of a thousand welcomes for remote gaming operators. Companies such as Cryptologic and Fulltiltpoker have already established a base in Ireland.

In launching the report, the Minister commented that because of technological advances associated with the online betting and gaming environments, the issues were complex and required further detailed analysis before the Government is asked to make a formal decision on introducing any significant changes to the regulatory regime in the gaming and betting area. Accordingly, the Minister is to establish an informal Cross-Party Committee, which is to examine all aspects of gaming in Ireland and which will provide a final report with recommendations on the future architecture for gaming in Ireland.

Already statements from certain quarters, such as that from the Labour Party, suggest that cross-party consensus may be difficult to achieve. The Cross-Party Committee is to undertake public consultation in relation to the issues in the Casino Committee Report. So it will shortly be open season for lobbyists to make submissions to the Cross-Party Committee. While remote gaming is unlikely to change in Ireland in the short-term, Ireland is nevertheless on the road to change.

The Report quite rightly notes that there is much work to be done to frame the issue of remote gaming in an Irish context. Ireland is still very much at the starting blocks and has a lot of catching up to do. Little or no research has been undertaken in Ireland as to the social, economic and political impacts on matters related to remote gaming - i.e. technology, responsible gaming, age verification, payment methods etc. Perhaps in recognition of the challenges ahead, the Report puts forward the aspiration that 'Ireland, as a gaming friendly centre of excellence, can reasonably expect to attract a reasonable portion of this dynamic industry, therefore yielding significant synergistic benefits as well as employing opportunities'. No aspiration exists for Ireland to be the hub of remote gaming in Europe, Ireland merely wants a slice of the cake.

It took three years from the publication of the Budd Report in the UK in 2001 for the draft Gambling Bill to be published in 2004. If Ireland could secure the same feat within the same timeframe, it wouldn't be doing too badly. Obviously certain industry operators, such as the terrestrial casino operators, would prefer to secure legislative certainty for their operations as a matter of urgency.

However, Ireland's current gaming laws date back to 1956 and any reform of the legislative environment will not happen overnight. The Minister has publicly stated that he was 'very anxious to get things right in relation to our gaming and betting codes'. That effectively means that Ireland requires clear legislation, appropriate regulation and competitive taxation. If Ireland fails to successfully deliver on any of these elements - potential benefits for the country consumers and operators will be frustrated.

The Report concludes that strict regulation of the remote gaming market be established, taking in to account the national, social, economic and political context. While the recommendations of the Committee appear to lay down the welcome mat for remote gaming operators, as the Committee noted itself, it is 'merely scratching the surface' on the complex issues of remote gaming.

For further information please contact Áine Matthews of the Gaming and Gambling Unit.

This article was originally published in World Online Gaming Law Report, 7(7), July 2008.