Ireland’s Gambling Bill: Industry Concerns, Regulatory Challenges, and Uncertainty Over Taxation

On the evening of October 16, Ireland’s Dáil Éireann passed a landmark piece of legislation, updating the nation’s gambling laws for the first time since 1956.

The Gambling Regulation Bill, first introduced in December 2022, aims to modernize the gambling landscape in Ireland by creating a regulator, instituting a national self-exclusion scheme, and implementing stricter regulations on advertising, licensing, and the location of gaming venues. For instance, gaming machines will no longer be permitted within the vicinity of schools.

All operators—whether running in-person establishments or online gambling services—must now reapply for licenses through the newly established Gambling Regulatory Authority of Ireland (GRAI). These licenses come with new player protection requirements, such as an advertising watershed that restricts gambling-related ads between 5:30 a.m. and 9 p.m.

A Long Overdue Modernization

Until now, Ireland’s gambling regulations were largely modeled after outdated UK frameworks. Gambling lawyer Carlo Salizzo, from the Dublin-based firm Matheson LLP, highlighted the antiquated nature of the legislation:“It is very much a jurisdiction that has not seen reform or regulation in a modern sense for a very long time. There have been various attempts to pass new legislation overhauling that 1950s-era legislation. Until now it has been very difficult to do so, given the opposition in Ireland from various key stakeholders, including the racing industry, the bingo halls of the country and many sports clubs who use lotteries.”

While the bill has been heralded as a step toward aligning Ireland with other mature gambling markets, many within the industry have voiced dissatisfaction with how the legislation was crafted. Casino and gaming consultant JJ Woods described the process as disconnected from the realities of the sector:“Am I frustrated with [the bill]? Yeah, I think that would be the word, because it’s literally [been developed by] people who have absolutely no understanding of the industry.”

Stakeholder Frustrations and Concerns

Leading industry players have raised a number of concerns. Flutter, the global operator that emerged from Irish company Paddy Power, expressed apprehension over new stake and win limits for online gaming and the restrictions on advertising. While welcoming the regulatory overhaul, Flutter warned of unintended consequences: “While we support much of what is contained within the new legislation, we believe the way it has been written could have an impact on the future of horse racing in Ireland and drive more players into the open arms of the unlicensed and unregulated black market.”

The horse racing industry has also sounded alarms. New advertising rules, which include a daytime ban on gambling ads across TV and radio, threaten to make Irish broadcasting “economically unviable,” according to Racecourse Media Group’s RacingTV channel. The group argued it lacks the resources to adapt its offerings to comply with these restrictions.

Meanwhile, the Irish Bookmakers Association (IBA) has called for revisions to certain sections of the bill to ensure it remains “effective and practical without inadvertently pushing customers towards the black market.” Nonetheless, the IBA has endorsed initiatives like the establishment of a national self-exclusion register and the creation of a Social Impact Fund, which gambling operators must financially support to address gambling addiction and related harms.

However, frustrations over specific rules persist. For instance, the €10 stake limit on games and the €3,000 per-game win cap have drawn criticism, as has a blanket ban on social media advertising. Both Salizzo and Woods foresee a strong industry pushback, with Salizzo speculating on potential legal challenges: “It’s possible that we could see a constitutional challenge to the legislation or something like that. I think given the way the bill is drafted it’s more likely the industry would be looking to challenge it rather than lobby groups that might try to make it stricter.”

Public Health at the Forefront

Salizzo emphasized that public health concerns were a driving force behind the bill: “Certain parts of the government, and in particular stakeholders within the civil service, felt that the current regime was not the best way to deal with a public health issue as they saw it. We saw similar legislation around alcohol a number of years ago and this legislation takes some cues from that legislation and that approach.”

The timing of the bill’s passage was also politically motivated. With a general election looming—set for November 29—Prime Minister Simon Harris and his government sought to finalize the legislation before the parliamentary dissolution on November 8.

Challenges Ahead for Implementation

Despite the political momentum, questions remain about the bill’s implementation. James Browne, the lead deputy for the legislation, has stated that enactment within a year is the goal:“That would certainly be the aim, [although] we can never be certain about these things.”

Salizzo predicts delays, particularly in forming the regulator, due to recruitment challenges and the need to develop extensive guidance for implementing the new rules:“We are aware that the authority is facing significant difficulties in recruiting and in terms of pulling together quite a large amount of guidance that it will need in order to implement all of the new changes provided in the legislation.”

The GRAI, led by CEO Anne Marie Caulfield, is still recruiting board members, licensing experts, and other key personnel. Concerns about the regulator’s effectiveness have also been raised. Deputy Mattie McGrath questioned the regulator’s powers during the bill’s final debate, but Browne reassured parliament: “I can assure the deputy that this regulatory authority will not be toothless or fruitless. It will be a very powerful regulatory authority. It will regulate an industry that we estimate is worth €6 billion. The regulatory authority will be funded by the industry by way of levies. The impact on the taxpayer once it is up and running should be zero.”

What About Taxes?

The bill provides little clarity on gambling taxes. VAT remains applicable to gaming, and betting duty remains at 2% of turnover. A proposed 0.5% increase was omitted from the recent budget, leaving taxation largely unchanged for now.

Learning From Other Markets

The bill’s passage marks a significant milestone, but its long-term success will depend on how effectively Ireland can avoid the pitfalls seen in other jurisdictions. Taxation and licensing costs will play a key role in maintaining a competitive and regulated market. The industry hopes to work closely with the regulator to ensure the bill’s implementation is practical and minimizes unintended consequences.

As Salizzo noted, the legislation has the potential to raise standards across the sector, holding licensees accountable through penalties and sanctions: “The penalties for non-compliance can be very, very strict up to and including criminal proceedings in some cases.”

Deputy Browne underscored the regulator’s authority to act against unlicensed operators, including seeking court orders to block illegal advertising: “It is an important, effective regulatory tool used in other jurisdictions and one that will assure the public it is being protected while allowing the authority to send a message that it is regulating the industry.”

While the gambling sector has shown resilience in adapting to evolving regulations, the coming months will determine whether Ireland’s approach strikes the right balance between protecting public health and supporting an industry that contributes significantly to the economy. 

By fLEXI tEAM