gaming and betting industry services (e.g. casinos & others)
Compliance Ireland is currently advising and training a number of businesses, such as Casinos, on current and proposed regulatory controls, including Financial Crime (i.e. money laundering, financing terrorism and fraud) on the Irish Gaming and Betting industry.
Depending up the specific nature of the business, the Irish Gaming and Betting industry is regulated by Betting Act 1931 and the Gaming and Lotteries Act 1956 to 2003.
New registration and financial crime requirements on gaming community
Thursday 28 July 2009: The Minister of Justice, Equality and Law Reform has published a Bill (Thursday 28 July 2009) to lead the way for enacting both the 3rd EU Anti-Money Laundering Directive (No. 60/2005/EC) (3rd Directive) and the FATF 40 Recommendations and 9 Special Recommendations into Irish law.
Under section 108 of the Bill any person who carries out activities caught by section 25(1)(h) - i.e. a person who directs a private members’ club at which gambling activities are carried on - will be required to register with the Minister through the Department of Justice, Equality & Law Reform. Failure to do is punishable by an unlimited fine or 5 years jail or both. Thus organisations which provide for the purchase or exchange of tokens or chips, or the placing of a bet, carried out in connection with gambling activities are be caught by the law and must register.
In addition to the registration requirements, Casinos, Private Members Clubs and others will be required to:
- identify and verify the identity of their customers and the beneficial owner(s) of customers
- report suspicions of money laundering and/or terrorist financing to the authorities. In the case of Ireland, the report must be filed with both the Financial Intelligence Unit (i.e. Garda Síochána (Irish Police Service)) and Revenue Commissioners; and
- take supporting measures, such as ensuring proper training of personnel and the establishment of appropriate risk-based internal preventive policies and procedures.
Personal liability
Should a private members club (or casino) ignore the law, then:
- in the case of an incorporated entity, its directors, managers, secretary and other officers or other officer of the body are criminally liable (fines and jail terms),
- in the case of unincorporated bodies - members of the committee or management or other controlling
authority of the body are criminally liable.
Compliance Ireland is advising and assisting private members clubs (i.e. casino like bodies) on their obligations, registration requirements and is developing those businesses' financial crime policies and procedures. Contact Peter Oakes at peter@complianceireland.com or +353 1 425 5962 for more information on this service.
See our Financial Crime page and our separate Anti-Money Laundering website www.antimoneylaundering.ie for further information about our services in this area.
Monday 2 March 2009: The Irish Government has announced that it will regulate and licence casino clubs as a first step towards overhauling Ireland’s gambling legislation. The new requirements will be introduced via the much awaited Criminal Justice (Money Laundering) Act 2009 which will initiate new laws to control casino gaming in private members’ clubs. The Act is due to be published shortly. Ireland is currently facing infringement proceeding instigated by the EU Commission for failing to implement the EU financial crime directive on its due date of 15 December 2007. See article in Irish Times by Paul Cullen and Barry O’Halloran by clicking here.
Minister for Justice Dermot Ahern’s decision is striking given that there is no political cross-party agreement on the issue. Readers will know that the Labour Party and the Government disagreed on the remit of a cross-party agreement. According to the Irish Times, the Minister will undertake a two-step approach by: (i) setting up a casino gaming control section in the Department of Justice to register and control casino operations on an interim basis; and (ii) introduce a revised gambling code.
Technically casinos are illegal in Ireland. However approximately 50 private members’ offering casino-type games operate in Ireland. The Irish Times also reported the case of Atlantic Casino Club (ACC) in Clonmel, which was raided by Gardaí (Irish Police) last year last year. ACC is being prosecuted before the District Court. See http://www.irishtimes.com/newspaper/ireland/2008/0519/1211123049506.html
The new arrangements announced by the Minister will involve voluntary compliance by clubs with a code of standards and ethics. Existing operators will not be guaranteed authorisation.
“In reality, by virtue of introducing regulation, it is likely that some venues may have to close down due to an inability to meet the conditions and standards expected in a regulatory environment.” said the Minister. Clubs will be subject to strict oversight by a special unit within the Departmental of Justice and casinos will have to comply with anti-money laundering and terrorist financing laws. Large-scale casino developments will not be permitted, according to the Minister. Mr Ahern says the longer-term aim is to put in place “a modern, responsive code that recognises the fact that some people gamble and enjoy gambling”.
A Government report published last year recommended licensing and regulating casinos, while existing operators themselves have also been seeking such measures. See below for details of this report.
Mr Michael Walsh, a principal officer in the Department of Justice, will act as the authorised officer responsible for registering and controlling private members’ clubs. Mr Walsh’s unit will bring forward a comprehensive new gambling code, designed to ensure that gambling is kept free of crime and is conducted fairly and openly. The new code will also focus on protecting young people.
The gaming control unit will carry out a review which will look at the opportunities and threats posed by the online gaming industry, developments in the UK and the out-of-date nature of current legislation.
An industry-sponsored report (by DKM Economic Consultants for the Gaming and Leisure Association of Ireland) believes that regulation could generate up to €280 million for the economy and create 13,000 new jobs by 2020. Most of the jobs would be in the area of information technology and software development. See http://www.herald.ie/national-news/gambling-on-new-jobs-1492737.html.
REGULATING GAMING IN IRELAND
In July 2008 a ground breaking report on the Irish Gaming and Betting industry was released. The Report by the Casino Committee, Regulating Gaming in Ireland, is a comprehensive assessment of current and recommended future regulation affecting the Gaming and Betting industry in Ireland. The Committee was chaired by Michael McGrath. The Committee was asked by the Minister for the Department of Justice, Equality and Law Reform to consider the public policy objectives of having (or not having) a regulated industry. Of the three options below, the Committee was asked to consider Option 3:
Option 1: Do nothing i.e. retain the current status and leave the current legislation in place;
Option 2: Legislate to remove legal ambiguity i.e. ban casinos operating as private members clubs leaving all else unchanged;
Option 3: Specifically legalise casinos and associated areas of economic activity and provide for the regulation of the sector.
After a thorough assessment of Option 3, the Report makes 25 recommendations including:
(1) establishment of a new regulatory system. Subject to the government clarifying the public policy parameters, the Committee recommended that an Interim Gaming Regulatory Authority, based within the Department including representatives from other relevant government departments, in order to develop the regulatory system.
(2) creating a modern regulatory perspective: which is effective, proportionate, transparent, accountable and consistent; for the licensing and regulation of all gaming (this definition includes premises with gaming machines) in Ireland.
Financial Crime Requirements
In addition to Gaming and Betting regulations, the industry is now preparing to be brought with the fight against financial crime. This will be achieved by casino and casino like bodies coming with the proposed Criminal Justice (Money Laundering & Terrorist Financing) Act which will require such casinos & private members' clubs to implement policies and procedures to prevent and detect money laundering and financing of terrorism, including obligations to report suspicious transaction to the Garda (Irish Police) and Revenue Commissioners (Irish tax office), perform regular risk assessments, conduct appropriate customer due diligence and provide financial crime training and instructions to directors, management and staff. Developing comprehensive and practical financial crime policies, procedures and training are hallmarks of Compliance Ireland. We have a detailed understanding of this area. See our Financial Crime page and our separate Anti-Money Laundering website (www.antimoneylaundering.ie) for further information about our services in this area.
Data Protection & Privacy Requirements
Operators of Gaming and Betting businesses process (i.e. collect, use, transfer and retain) vasts amounts of personal data and sensitive personal data on their customers, members and staff. When operating in the European Union and other well regulated data privacy jurisdictions, operators must meet onerous data protection/privacy compliance obligations. Operators will generally have good reason to collect, use and retain personal data and sensitive personal data but each circumstance is both a question of fact and law. In addition, given the vast amount of financially confidential information used by operators, appropriate security safeguards must be in place in relation to the risk of such data being lost or stolen (i.e. identity fraud). Operators will need to collect data because of financial crime regulations and legitimate business requirements, however they cannot collect excessive data. Furthermore, strict regulations apply to contacting customers and others by email, text and other electronic communication channels for marketing purposes. European Union courts are empowered to order the deletion of customer databases, beyond recovery, when used inappropriately for any reason. The Irish courts have used such powers. Developing comprehensive and practical data protection policies, procedures and training are hallmarks of Compliance Ireland. See our Data Protection page and our separate Anti-Money Laundering website (www.privacy.ie) for further information about our services in this area.
As we all appreciate, the Gaming and Betting industry is a dynamic and innovative industry which cannot be constrained by state boundaries as operators cement their use of the internet to provide services. As soon as legislation is effected, a new and novel form of gaming/betting is sure to arise which is not contemplated by existing law. Compliance Ireland has unique experience in dealing with such fastest growing, innovative and dynamic sectors.
Whether you are a bookmaker, operator of fixed odds betting terminals, internet gaming and gambling operator, casino operators, amusement arcade operators or provide other gaming and leisure activities, Compliance Ireland can assist you meet your regulatory compliance obligations.
Introductions to Solicitors
Where specific legal advice is needed, for example in contentious/litigious matters involving Gaming and Betting, we maintain strong relationships with Ireland’s leading law firms practising in this area. We work with these firms to deliver a competent and operationally effective service to our clients.
Contact us if you need policies, procedures, undertaking of discrete remedial action (i.e. clean up) exercises, practical training or other Gaming and Betting regulatory services.
For further information contact:
Peter Oakes or Kevin O'Doherty
Compliance Ireland
Lower Ground Floor
13 Adelaide Road
Dublin 2
Tel: +353(0)1425-5962
Fax: +353 (0) 1 633-5005
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Recent news on Casinos/Gaming firms:
- New registration and financial crime requirements for gaming community. Click here
- Regulating Gaming in Ireland. Click here
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Financial Crime page
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