GAMBLING CONSULTATION RESPONSES – KEY ISSUES

  1. The recent consultation on gambling addressed a large number of general and sector specific issues including the current restrictions on gambling and future regulation of the industry. A total of 239 responses were received to the consultation including the views of 44 organisations. There was an organised response from betting interests and the results could be said to have been skewed by the weight of opinion of this group. The views expressed in the consultation on the key review issues are set out in this document. Appendix A contains some further details on the key issues and the views expressed. A list of those organisations who responded to the consultation is attached at Appendix B. Appendix C contains some background on the current law and the structure of the industry.

Casinos

  1. Currently the Northern Ireland law does not permit high stakes commercial gaming associated with ‘Casinos’ in GB. The review noted that casinos which are developed as part of a wider leisure complex can bring benefits to a region in terms of jobs, tourist revenue and regeneration. Tax revenues may also be significant. The views in the consultation on this issue were mixed. While no impact assessment has been made it is doubtful whether more than one such casino would be viable in Northern Ireland. Casinos offer the hardest forms of gambling and a decision to permit their operation here cannot be taken lightly.

Sunday gambling

  1. The consultation sought views on a change in the law to permit Sunday opening of bookmaking offices and commercial bingo clubs. While there was strong support for this in the consultation it is recognised that Sunday trading, be it shops or gambling premises, is an emotive issue in Northern Ireland.

Gaming machine stakes and prizes

  1. Other jurisdictions permit machine gaming with high stakes and payouts. The NI law permits relatively low-level machine gaming in amusement arcades, bingo halls, bookmaking offices, pubs, hotels and private members clubs. The monetary limits on gaming machine stakes and prizes have not been reviewed for many years and have fallen well behind the limits for the corresponding gaming machine categories in GB. There was strong support in the consultation for restoring parity with GB.

FOBTS

  1. Many bookmaking offices have Fixed Odds Betting Terminals (FOBTs) which offer high-stake high-prize machine type gaming. FOBTs operate within a grey area of the law. In GB, they are classified as gaming machines and regulated accordingly. There was strong support in the consultation for legalising these machines. A decision to permit FOBTs in bookmaking will lead to calls for a change in the law to allow high-stake high-prize gaming machines in other premises.

Bingo

  1. In GB, the playing of bingo in commercial clubs has been largely deregulated. There was strong support in the consultation for a number of relaxations in the law including removing the money controls on bingo and increasing prize gaming stakes and prizes.

Lottery monetary limits

  1. The monetary limits for societies’ lotteries have not been increased for many years and local charities say the rules are too restrictive. The consultation asked for views on a number of measures to assist fund raising by local charities, including removing the current £1 stake limit for a ‘ticket’ in a lottery draw. There was support in the consultation for easing a number of the current restrictions.

Problem gambling

  1. The GB gambling industry has given a commitment to fund research, education and treatment of problems gamblers. There was some support in the consultation for a similar commitment to be made by the local industry. This could be achieved by imposing a statutory levy on the industry. The Minister is concerned about the number of problem gamblers identified in the gambling survey and the wider impact their behaviour has on their families and friends.

Remote gambling

  1. The current law predates the development of the internet and does not specifically provide for the licensing of online gambling activities. While there was strong support for introducing a local licensing scheme there is a significant trend towards online gambling providers moving offshore for tax reasons. The UK Government and the EU are looking at the current system of remote gambling with a particular focus on consumer protection. Officials will continue to monitor policy developments in this area and consider the implications for the Northern Ireland law.

Regulation and enforcement

  1. At present licensing of gambling falls mainly to the courts and district councils and enforcement is the responsibility of the police. The PSNI regard enforcement of the gambling law as primarily a social and revenue matter, not a core policing issue, and would like to see the duty pass to some other agency. Views were sought as to whether a single licensing body should be created to grant licences and oversee the activities of the industry. It was acknowledged that the extent to which any new licensing body would assume responsibility for enforcement would require very careful consideration. There was limited support in the consultation for the creation of a single licensing body.

Way forward

  1. The consultation sought views on nearly 50 issues or themes some of which affect certain sectors of the industry. The Minister is giving detailed consideration to all of the issues identified in the consultation. A number of these, for example the high level of problem gambling here, will require a coordinated response by the Northern Ireland Executive.

September 2011

Appendix A

SIGNIFICANT GENERAL AND SECTORAL ISSUES FOR THE REVIEW OF GAMBLING

  1. This section summarises the overall response and records the views of organisations on a small number of the more significant review issues. Of the 68 responses that stated they were on behalf of an organisation, some organisations had included more than one response. However, these duplicate responses were generally identical and were removed to ensure no organisation had more than one response input to this analysis. Once duplicates were removed, 44 responses remained.

High stakes ‘Casino’ gaming

  1. Currently the Northern Ireland law does not permit high stakes commercial gaming associated with ‘Casinos’ in GB. ‘Casino games’ are unequal chance games involve playing or staking against ‘the house’ and include roulette, blackjack, baccarat and craps (dice). This is generally regarded as the hardest form of gambling and is closely supervised in jurisdictions where it is permitted. The review noted that Casinos can bring economic benefits to a region particularly when developed as part of a wider leisure complex. The review asked whether Casinos should be permitted to operate in Northern Ireland.

Permit licensed commercial gaming clubs (casinos) / Strongly Agree /Agree / Neither Agree/Disagree / Strongly Disagree /Disagree
Overall / 35 / 147 / 42
Organisations / 2 / 28 / 13

Sunday gambling

  1. Views were sought on changing the law to permit bookmaking offices and commercial bingo clubs to open on Sundays.

Permit Sunday opening of bookmaking offices and commercial bingo clubs / Strongly Agree /Agree / Neither Agree/Disagree / Strongly Disagree /Disagree
Overall / 162 / 23 / 39
Organisations / 18 / 16 / 9

Gaming machines / FOBTs

  1. Other jurisdictions permit machine gaming with high stakes and payouts. The NI law permits relatively low-level machine gaming in amusement arcades, bingo halls, bookmaking offices, pubs and hotels. These premises may operate gaming machines with a maximum prize of £25 for a 30p stake. Private members clubs may operate up to three £250 jackpot machines. The monetary limits on gaming machine stakes and prizes have not been reviewed for many years and have fallen well behind the limits for the corresponding gaming machine categories in GB. Views were sought on restoring parity with GB for classes of gaming machine that are currently permitted in NI.

Increase gaming machine stakes and prize limits (for permitted classes) in line with changes to the corresponding limits in GB / Strongly Agree /Agree / Neither Agree/ Disagree / Strongly Disagree /Disagree
Overall / 158 / 41 / 17
Organisations / 16 / 21 / 6
  1. Many bookmaking offices have Fixed Odds Betting Terminals (FOBTs) which offer high-stake high-prize machine type gaming. These machines operate within a grey area of the law. In GB, FOBTs are classified as gaming machines and regulated accordingly. A ‘bet’ of £15 can be made for a £500 prize. However, multiple ‘bets’ totally £100 can be made in a single game. Views were sought on legislating to ban their use here.

Classify FOBTs as gaming machines and ban their use here / Strongly Agree /Agree / Neither Agree/ Disagree / Strongly Disagree /Disagree
Overall / 27 / 51 / 138
Organisations / 6 / 22 / 15

Bingo Clubs

  1. In GB, the playing of bingo in commercial bingo clubs has been largely deregulated. The review asked whether similar relaxations should be introduced here including removing the money controls on bingo games and increasing the monetary limits on prize gaming in bingo clubs (said to be a significant source of revenue for clubs) in line with GB.

Increase the prize gaming monetary limits in line with GB / Strongly Agree /Agree / Neither Agree / Disagree / Strongly Disagree /Disagree
Overall / 159 / 44 / 13
Organisations / 17 / 21 / 5

Lotteries

  1. The monetary limits for societies’ lotteries have not been reviewed for over 20 years and local charities say the rules are too restrictive. Views were sought on a number of relaxations in the law including removing the current £1 stake limit for a ‘ticket’ in a draw.

Remove the £1 stake limit, subject to the overriding principle that the price of every chance in the same lottery must be the same / Strongly Agree /Agree / Neither Agree / Disagree / Strongly Disagree /Disagree
Overall / 34 / 169 / 3
Organisations / 9 / 30 / 4

Problem gambling

  1. The GB gambling industry has given a commitment to fund research, education and treatment of problems gamblers. In view of the level of problem gambling measured by the NI survey the consultation asked whether a similar commitment should be made by the local industry.

The NI industry should help fund research, education and treatment of problem gamblers and whether a power should be taken to impose a statutory levy. / Strongly Agree /Agree / Neither Agree / Disagree / Strongly Disagree /Disagree
Overall / 56 / 43 / 114
Organisations / 11 / 20 / 12

Remote gambling

  1. The current law predates the development of the internet and does not specifically provide for the licensing of online gambling activities. The consultation sought views on introducing a licensing system to allow online providers to establish their operations in Northern Ireland. However, it was noted that there is a significant trend towards online gambling providers moving offshore for tax reasons.

Allow online providers to establish their operations in NI. / Strongly Agree /Agree / Neither Agree/Disagree / Strongly Disagree /Disagree
Overall / 147 / 52 / 25
Organisations / u/k / u/k / u/k

Regulation and enforcement

  1. At present licensing of gambling falls mainly to the courts but district councils and the Department also license certain activities. The system is largely reactive and relies heavily on objections rather than active investigation of applicants. In GB the converse is true. Views were sought as to whether a single licensing body should be created to grant licences and oversee the activities of the industry. There was a reluctance to create a Quango on the grounds of cost so there was a prospect of this function coming fully within the responsibility of DSD. It was acknowledged that the extent to which any new licensing body would assume responsibility for enforcement would require very careful consideration.

The need for a single licensing bodywith limited powers of enforcement / Strongly Agree /Agree / Neither Agree
/Disagree / Strongly Disagree /Disagree
Overall / 42 / 46 / 121
Organisations / 8 / 17 / 18

Appendix B

ORGANISATIONS WHO RESPONDED TO THE CONSULTATION

  1. Of the 68 responses that stated they were on behalf of an organisation, some organisations had included more than one response. However, these duplicate responses were generally identical and were removed to ensure no organisation had more than one response input to this analysis. Once duplicates were removed, there were 44 responses classified into three broad groupings faith groups, gambling industry, public / voluntary / other bodies. We received late submissions from several organisations, after the initial statistical analysis was carried out. However, the views expressed by these organisations are being considered.
  1. The 44 organisations are listed below.

Organisation / Grouping
Caleb Foundation / Faith based
Evangelical Presbyterian Church
Free Presbyterian Church
Independent Loyal Orange Institution
Methodist Church in Ireland
Reformed Presbyterian Church in Ireland
Salvation Army
Betfair / Industry
Camelot
G Hughes Ltd.
Higgins Bookmakers
James Rainey Bookmakers
Ladbrokes
MCE Public Relations
McLeans Bookmakers
NI On-course Bookmakers Association
NI Turf Guardians Association
NIACTA
Oasis
P&F Amusements
Paddy Power
Sean Graham Bookmakers
Terry Fox Bookmakers
Toals Bookmakers
Vale Entertainments Ltd. t/a Strand Bingo
Advice NI / Public / vol /other
ASA
Ballymena Borough Council
Coleraine Borough Council
Dunlewey Gambling Advice Service
Institute of Funding NI Committee
Institute of Public Health
National Lottery Commission
NICVA
PSNI
The Lotteries Council
Advertising Association
Arthur Cox NI
Association Of Interactive Media and Entertainment
British Heart Foundation
British Red Cross Society
CBI
Channel 4
Lewis Silkin LLP

Appendix C

Review of GAMBLING - BACKGROUND

Law

  1. In Northern Ireland gambling (other than the National Lottery) is regulated under the Betting, Gaming, Lotteries & Amusements (NI) Order 1985 (the 1985 Order) which is largely based on law in Britain from the 1960s. The objectives of the 1985 Order are to keep crime and public disorder out of gambling, to ensure that gambling is conducted in a fair and open way and to protect the vulnerable.
  1. In broad terms the 1985 Order regulates:
  • Betting, including tote betting, bookmaking on tracks & in offices;
  • Gaming, including the use, supply & maintenance of gaming machines and gaming in bingo clubs;
  • Small scale Amusements With Prizes; and
  • Lotteries (other than the National Lottery).
  1. Courts and district councils licence gambling activities, DSD is responsible for track-betting licences and enforcement lies with PSNI.

Structure of the industry

  1. The gambling industry in Northern Ireland is relatively small when compared to GB. Latest available figures show that nearly 2400 persons are employed in all gambling and betting activities in Northern Ireland. A significant number of people are also employed indirectly in the local gambling industry, for example gaming machine suppliers, and in ancillary activities.
  1. In the betting sector there are currently around 230 licensed bookmakers and approximately 330 offices. There are two horse racing tracks and two dog racing tracks licensed for betting. Ladbrokes is Northern Ireland’s largest bookmaker and other large chains include William Hill and Paddy Power. Nearly two-thirds of the sector is made-up of local independents.
  1. There are around 40 commercial bingo clubs in Northern Ireland made-up of local independents.
  1. The number of certificates issuedfor the supply and maintenance of gaming machines is around 60. Gaming machines are operated mainly in amusement arcades and the total number of amusement permits issued for this purpose is 165. Gaming machines may also be operated in bookmaking offices, bingo halls and pubs, hotels and registered clubs, but no separate permit is required for these premises. However, there is evidence that gaming machines are being operated in unlicensed premises such as taxi depots and fast food outlets.
  1. HM Revenue and Customs (HMRC) records indicate that there are around 7250 gaming machines in Northern Ireland on which Amusement Machine Licence Duty (AMLD) is paid. There are approximately 350 of the £250 Jackpot machines and 6,000 £25 amusements with prizes (AWP) machines. There are around 360 Fixed Odds Betting Terminals (FOBTS) in bookmaking offices and a further 540 unregulated gaming machines in various premises have been licensed by HMRC for AMLD. AMLD is not payable on the lower vale (£8 prize) AWP machines and no record of numbers in use is available.
  1. Around 200 organisations are registered with district councils as a society’s lottery in which tickets for prizes are sold to the public for good causes. There are no records readily available indicating the number or value of individual lotteries held annually in Northern Ireland.
  1. No information is currently available as to the value of the industry to the NI economy. However, research suggests allowing Sunday opening of bookmaking offices could create 160 (FTE) new jobs and additional revenue for HMRC from betting of £4m to £5m per year.

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