Regulation Issues
New Irish gambling laws fail to address the primary issues in industry says the parent company behind Paddy Power, Flutter Entertainment.
Flutter has welcomed the new laws but warned that there may be unintended consequences for Irish horse racing.
Concerns over Horse Racing
The first significant piece of gambling legislation in Ireland since 1956 passed the final stages in Oireachtas this week. The Gambling Regulation Bill will reform the industry, which has an estimated worth of between €6 billion and €9 billion a year in Ireland.
Flutter, along with the Irish Bookmakers’ Association and the horse racing industry, have raised concerns since the bill was first mooted in 2020.
One of the main issues is that the bill will implement a blanket ban on gambling adverts on television between 5 a.m. and 9.30 p.m. The step is clearly intended to reduce the number of young and vulnerable people exposed to gambling promotion. The subscription channel Racing TV could be adversely affected as it broadcasts races from Ireland’s 26 tracks throughout the day. The channel recently agreed a deal to have the rights through until 2029.
Martin Stevenson, CEO of Racecourse Media Group (RMG), the primary company behind Racing TV, said that discontinuing gambling advertising, sponsorships, and branding on the channel would create significant economic and operational difficulties. Horse races often take place on courses with hoardings all along the route advertising betting sites.
Sky Sports Racing responded by pledging to launch a dedicated Irish stream so that viewers in Ireland can continue to watch races at British tracks.
Carefully Considered
Minister of State James Browne who has championed the bill since 2020 highlighted that the bill has been carefully considered. He implored people to understand that a lot of work has gone into building this complex piece of legislation.
The bill will also establish a Gambling Regulatory Authority with seven members, including the already appointed chief executive, Anne Marie Caulfield. Mr. Browne indicated that the regulators would listen to recommendations to change regulations as the industry moves and changes how it targets people.
Betting Limits
Flutter, along with other casino operators, independent lottery operators and poker tournament organisers, also took issue with the limits laid out in the bill. The law will introduce €10 betting and €3,000 win limits on games such as roulette and blackjack.
Limits on betting and winning caps are found elsewhere in the EU, but these are notably higher than other jurisdictions. This has raised concerns it will drive customers to the black market.
Greece recently doubled their win cap to counteract this activity. The Greek gambling industry now operates with win limits of €140,000, 46 times higher than the figures proposed for an Irish cap. Concerns about the gambling black market also crop up in relation to restrictions on offers and promotions.
Flutter has acknowledged and welcomed steps that they perceive as positive. These include modernising licenses and strengthening schemes that allow customers to exclude themselves from betting.
