Introduction

The new Gambling Regulation Act 2024 (“GRA”) signifies a major change to the law on betting and gambling in Ireland. Replacing legislation that is nearly 70 years old, the GRA has been described by the Irish government as “historic”. It is being implemented on a phased basis and key features include:

  • Establishing the Gambling Regulatory Authority of Ireland (“GRAI”) to licence, supervise and control gambling activities in Ireland.
  • A new licensing model for gambling, betting and lotteries covering:
    • Business to Consumer (B2C) gambling licences for operators of gambling services
    • Business to Business (B2B) gambling licences to sell, supply or advertise sales of gambling products or gambling related services
    • Gambling licences for charitable or philanthropic purposes

The GRAI recently announced that it has started the application process for B2C licences. It envisages that the other licence models will be implemented at a later phase.  The GRAI will have powers to impose and enforce obligations on all licensees of gambling services in relation to how they advertise and sponsor and arrange inducements to gamble.

Warning! Changes Ahead in marketing gambling services

Currently, rules on advertising of gambling services are primarily set by Ireland’s Advertising Standard Authority’s (“ASA”) Code of Standards for Advertising and Marketing Communications (the “Code”). The ASA is a self-regulatory body for advertisers in Ireland and the Code is non-statutory. While the Code is not legally enforceable, advertisers agree to abide by it and marketing communications that are found by the ASA to contravene the Code must be amended or withdrawn. After the GRA was enacted, the ASA has announced that it will continue to handle complaints related to the Code and it will work with the GRAI to deal effectively with gambling advertising complaints.

The stated Government policy is that the GRA is a public health measure to protect consumers, particularly younger people and vulnerable individuals. This policy is reflected in the GRA’s prescriptive rules on advertising of gambling services. These rules are not fully in force but once they are in place they will transform how gambling operators can advertise and arrange sponsorship. The consequences for breaching the rules will also be significant. The GRAI will have the power to apply to the High Court to prohibit advertising that contravenes the GRA and some breaches will carry criminal penalties.

The following restrictions will apply to advertising “relevant content” which is defined as covering a betting activity, a game, a lottery or advertising the licensee itself.

  • Targeting ads a children will be prohibited.  
  • An advertising watershed will apply between 5:30 a.m. and 9:00 p.m. across multiple broadcast and online platforms
  • Intermediaries cannot be engaged to target ads at users on-demand and social media services unless the intended recipient of an ad has an account with that service and where the ad is placed on social media, the person targeted much also follow the licensee’s social media channel on that platform.

The GRAI has issued guidance on how advertising restrictions will apply. It clarifies that licensees will not breach their obligations if restricted advertising is incidental. Incidental advertising covers circumstances where a licensee’s trademark, logo, marketing image or sponsorship information is visible or audible at an event, such as at a sports stadium. However, the guidance also shows the effect of the restrictions on influencers and digital content creators. They will not be allowed to advertise relevant content unless the intended recipient has an account that follows both the influencer / content creator and the licensee on the same social media platform.

The GRA also prohibits selling and providing clothing and merchandise that advertises a gambling activity or the name, logo, or trademark of a licensee where the clothing or merchandise is intended to be worn or used by a child. Distributing such products at events which may be attended by children is also prohibited. Failure to comply with these prohibitions will be a criminal offence.  Ireland’s main sports of GAA, soccer and rugby do not have front-of-shirt sponsorships from gambling companies but the new restriction is apparently broader than a prohibition for sporting organisations. The GRAI’s guidance states the new limitations apply where a licensee’s branded product, such as a flag, banner, hat or scarf is sold at events that children may attend. 

Sponsorship bans

Once in force, section 159 of the GRA will not permit B2C or B2B licensees to sponsor, or use an intermediary to sponsor, events aimed at children, where the majority of attendees or participants are children. More starkly, this prohibition will also apply to a licensee sponsoring an organisation, club or team used where children are members or a premises used by such an establishment.  Sponsorship covers making any form of public or private contribution towards an event or organisation with the aim, or direct or indirect effect, of promoting a gambling activity. A breach of this section of the GRA is a criminal offence. In reality, section 159 may severely limit sponsorship options for B2C and B2B licensees.

What to do next – Prepare for a new Regulatory Era

The GRA heralds a new era in gambling regulation moving from legislating on the operation of gambling activities alone to a framework that oversees and enforces how those activities are marketed to the public. This will present challenges for many licensees in moderating their marketing content to comply with the GRA and in engagements with broadcasters, advertisers, social media companies and others to navigate stricter national advertising and sponsorship rules in an increasingly borderless digital world.

In addition to the advertising and sponsorship restrictions detailed in this blog, the GRAI will have the authority to make further regulations on the content and placement of gambling ads. Any business that will need to apply for a B2C or B2B licence should:

  • Review their marketing strategies and engage with the forthcoming changes as early as possible to ensure minimal commercial friction
  • Consult with sponsor partners, brand ambassadors and advertising agencies about the impending changes
  • Assess existing advertising and sponsorship agreements
  • Build in flexibility to prepare for additional GRAI regulations on ad content and placement

As a final thought, in the immortal words of Jack Welch “Change before you have to”.