Irish gambling regulator responds to concerns over proposed licence fee structure
Operators had raised concerns over Irish gambling licence fees and durations.
Ireland.- The Gambling Regulatory Authority of Ireland (GRAI) has responded to operator concerns over the proposed framework for new Irish gambling licences. The regulator, which became fully operational this year, had opened a consultation back in March and invited expressions of interest from operators
It’s published an update after taking 27 submissions, mainly from operators but also from consultants and both public and civil society bodies. The regulator said that industry input had been “supportive or pragmatic” and included constructive suggestions for enhancement, rather than fundamental objections”.
However, operators raised concerns about the proposed application fee structure, which was described as being based on operator ‘turnover’. Operators suggested that this could create a disconnect between fees and actual revenue and could penalise operators specialised betting offerings.
The GRAI has clarified that it will consider a tiered licensing fee model based on gross gambling yield (GGY) or a hybrid of turnover (gross profit) and GGY.
Operators also raised concerns about the baseline fees of €20,000 for remote licences and the fee of €1,200 per premises irrespective of size. The GRAI said it would now consider a premises fee related to the scale of operations, possibly by assessing the number of gaming machines on site.
GRAI said: “Where concerns were raised… these often stemmed from misunderstandings or divergent interpretations of terms in the Irish Gambling Act, such as ‘turnover’.” It said it would publish guidance documents to clarify how turnover should be interpreted.
The regulator also said that comparisons to the British licensing regime were not entirely applicable due to its broader responsibilities. It said: “Many of the regulatory obligations that will be part of the GRAI’s responsibilities are not part of the Gambling Commission’s remit in Great Britain and instead are part of the functions of local councils.”
Length of Irish gambling licences
The majority of operators who responded to the consultation suggested that the length of Irish gambling licences should be longer than the proposed three years. Several noted that licences in Britain, Germany and France and some other European markets last five years.
While recognised this feedback is insists that three years is appropriate for the launch of the new regulated online gambling market. It said: “The GRAI acknowledges the theme of the responses in relation to the consideration of an extension of the licence term… but are satisfied that three-years duration is an appropriate starting point. The GRAI will commit to keeping the licence term under review as the licensing regulatory framework is established.”
It also said that it would provide more clarity on renewal fees and administrative requirements.
The GRAI said it will now proceed to notify the European Commission of its proposed licensing framework under the Technical Regulation Information System (TRIS). It said it would continue to engage with stakeholders and provide guidance when necessary.
