Bookmakers fear 'very damaging' black market boom if concessions are banned in Gambling Regulation Bill

Bookmakers in Ireland fear the Gambling Regulation Bill will deliver a seismic and "very damaging" boost to black market operators should concessions and free bets be prohibited in the new legislation that has been drafted.

The bill has a number of contentious clauses, none more so than the potential watershed ban on gambling advertising between 5.30am and 9pm that could render it economically unviable for specialist racing channels to broadcast in Ireland.

Section 148 details a prohibition on licensees to offer an "inducement to participate in a relevant gambling activity". While the term 'inducement' is not defined, it has the potential to prohibit promotions such as free bets, money back specials and other similar enhancements for punters.

Irish Bookmakers Association chair Sharon Byrne believes this will result in more punters seeking unregulated black market operators. Speaking on a Gambling Reform in Ireland webinar, Byrne said: "Anybody you speak to will know someone that’s gone to a pub and you see a bookie in the corner set up with a laptop and ringing in bets. There’s no social protection or age verification in that instance and there’s no tax being paid. 

Sharon Byrne: "Bill represents a defining moment for the regulation of gambling in Ireland"Credit: Patrick McCann

"There are also WhatsApp groups going around who don’t apply any AML [Anti Money-Laundering] measures or check your income if you’re gambling excessively. If the bill is left as it is and all free bets and inducements are banned and they tell you how much you can stake, while putting a cap on winnings, why would punters go into a betting shop given it doesn't apply to the black market?"

Byrne urged the government to engage in meaningful dialogue with the industry, saying: "We believe the bill will deliver sub-optimal protection to consumers and almost certainly drive them to black market operators. We can prevent all of this by engaging with relevant industry stakeholders before finalising the amendments. We think that is crucial so the legislation will be practical, effective and fit for purpose from the start.

"By not engaging now and not getting amendments right at this stage will leave a lot of unnecessary work and cost for the authority and operators. It will create unnecessary upheaval for the vast majority of customers who enjoy having a bet or playing the casino safely. This bill represents a defining moment for the regulation of gambling in Ireland."

Dermot McGirr, a commercial partner at lawyers Mason Hayes & Curran, noted that while the legislation is unlikely to come in before the end of the year, it will be implemented promptly and that the fundamentals are unlikely to be amended at this stage.

McGirr said: "This bill is happening and reform is coming. The most recent commentary we had from the minister is that he expects it to be finalised in the coming months.

"I would expect there would be a relatively short period between the finalisation of this bill and it going into force. The government have an implementation team in place and a CEO for the Gambling Regulatory Authority [Ann Marie Caulfield] ready to go. Although the bill hasn’t gone through the final legislative process yet, 95-97 per cent of this is not going to change."

Read this next:

Jessica Harrington warns Irish Gambling Bill would be a 'disaster' for her owners 

The Front Runner is our latest email newsletter available exclusively to Members' Club Ultimate subscribers. Chris Cook, a four-time Racing Reporter of the Year award winner, provides his take on the day's biggest stories and tips for the upcoming racing every morning from Monday to Friday. Not a Members' Club Ultimate subscriber? Click here to join today and also receive our Ultimate Daily emails plus our full range of fantastic website and newspaper content.