Experts describe new gambling regulations as a 'big miss'

Expert say that just because there may not be a 'culture of credit rating agencies or companies, it doesn’t preclude the creation of a system where third-party companies could carry out this function.

New protections to stop gamblers from losing more than they could afford were rejected by the Department of Justice in what experts say is a “big miss”.

It has also emerged that a second recommendation by the Oireachtas Justice Committee whereby gambling companies would be made liable to dependents and creditors of gamblers where they know the person is making losses beyond their means was also shot down by the department.

The new gambling laws will see:

• the creation of Ireland’s first Gambling Regulatory Authority;
• a ban on advertising on television and radio between 5.30am and 9pm;
• a ban on the offer of inducements and promotions like free bets;
• the creation of a social impact fund to finance initiatives aimed at reducing problem gambling.

However, a recommendation that background checks be carried out on customers when they register for an online gambling website to identify any “financial vulnerabilities” was rejected as the department said the checks would be “open to abuse and manipulation”.

It added: “It is not considered appropriate to implement this recommendation given the data protection concerns in allowing gambling companies to conduct their own analysis into a person’s private financial affairs.” 

It also said that, as there is no “culture of credit rating agencies or companies” here it would be “very difficult to potentially ascertain a person’s financial vulnerabilities”.

Ruled as 'impractical'

The committee’s advice to make gambling companies liable through legislation to dependents and creditors of gamblers where they know the person is making losses beyond their means would be “impractical to investigate and enforce”, the department decided. 

It added that it would require the creation of a hierarchy of persons to be reimbursed.

“Implementation of the recommendation could be open to abuse (for example a gambling participant could deliberately run up a lower amount in gambling debts to avoid paying off more substantial debts eg a mortgage payment),” it said.

The recommendations to the Department of Justice and its reasons for rejection are included in an analysis of the legislation published by the Oireachtas Independent Library and Research Service.

Barry Grant of Extern Problem Gambling said the omissions from new gambling laws are a “big miss”.

“That’s the big one [on affordability checks],” he said. “There’s a distinct possibility they’ll bring in affordability checks in the UK. The industry is all guns blazing over there to drop it.

But if the gambling industry doesn’t want it, it means it’s probably good for consumers. 

He said that just because there may not be a “culture of credit rating agencies or companies”, it doesn’t preclude the creation of a system where third-party companies could carry out this function.

“The downside to being so behind the curve is so many people’s lives have been harmed more than they might have been,” he said. “The upside is we can learn from the mistakes of all the other gambling regulators."

The new Gambling Regulatory Authority is expected to be up and running in 2023.