Casinoplusbonus investigates the new call for input to bring a levy on all operators approved for a GRAI licensing certificate in Ireland.
The Gambling Regulatory Authority of Ireland (GRAI) is set to follow in the footsteps of the UK Gambling Commission and impose a dedicated statutory levy for all operators.
For Ireland, the newly opened GRAI licensing authority is one of the latest developments in the newly regulated world of online gambling entertainment.
We are just learning about some of the new rules that are coming into force.
One of the latest news publications, among many more to come over the coming months, is that the GRAI has asked for input via a survey in regard to a planned Social Impact Fund.
The Social Impact Fund will be the same as the newly introduced levy in the UK market.
It consists of a rule that requires operators to contribute to an annual fund that will go towards investing in measures that prevent problem gambling. We also assume that, like in the UK, a portion of the money will also go towards charities that help those who have already developed a gambling addiction.
There is no set percentage at this time, which, according to the GRAI news report. Still, it does say the amount will be based on the turnover of the gambling entertainment business itself, which, in other words, will be applied to its Gross Gaming Revenue (GGR). In the UK, the percentage is 1% for online gambling operators.
For players, the worry is that online gambling sites are businesses, and they will look for ways to take value away from bonuses and promotions in order to keep profits higher. The other worry is that, with only a handful of online gambling businesses likely to be able to afford licensing fees, taxes, and levies, there will be less competition. As we all know, more competition means better value for players.
On the other hand, Paul Quinn, Chairperson of the GRA, makes a good point. He said in the FRAi news report: “The legislation that underpins the GRAI is, first and foremost, a public health measure, and the Social Impact Fund will allow organisations and bodies to provide essential support, education, training, and other measures that support the GRAI’s public protection mandate.”
Source: As always, we base our news stories and opinions on the most reliable sources possible. In the case of levvies being part the parcel of operating an online casino or sports book under the new GRAI licensing authority, our information comes direactly for the GRAI website news story – Social Inpact Fund Call For Input.
GRAI-Commissioned Survey Overview Explained
To evaluate the scope and impact of gambling-related harm, an assessment the Gambling Regulatory Authority of Ireland (GRAI) asked Pobal to conduct a survey and research. This research involves distributing four tailored surveys aimed at capturing insights from key segments of the population:
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Individuals with personal experience of gambling harm or addiction
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People affected by someone else’s gambling habits, such as family members or close friends
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Addiction service providers that offer treatment and support for gambling-related issues
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NGOs, charities, and sports organisations that engage with communities at higher risk of gambling harm, including children and young people
The multi-group approach ensures a broad understanding of the social effects of gambling and informs future regulatory and support strategies.
What is Our Opinion at Casinoplusbonus
It comes as no surprise that the GRAI requires a levy on top of what we assume will be business taxes, application fees, and yearly licensing certification renewals.
It seems that, as we enter the evolving age of newly formed domestic licensing authorities, rules that charge operators a percentage of their Gross Gambling Revenue (GGR) are becoming commonplace.
As a result, online gambling operators need to navigate multiple compliance rules across different jurisdictions. It is obvious why. One of the key advantages is that countries, states, or provinces with domestic licensing have more control over the cause to prevent problem gambling.
Fighting problem gambling is the narrative from almost every new licensing authority. We have seen this in recent announcements in New Zealand and Alberta, Canada. Additionally, Ontario’s iGaming licensing and the UKGC White Paper have both stated that their focus is on making gambling safer for citizens in their respective countries or provinces.
The Pros and Cons
One advantage we can see is that citizens in countries or provinces with a domestic licensing system have the protection of local laws. Obviously, applying high application fees, tax obligations, and then a levy, as we mentioned, could put a strain on the value passed down to customers. We will just have to wait and see how the newly regulated Irish online gambling entertainment market unfolds.
On the other hand, the disadvantage is that the ‘free market’, as we like to call it, will only be accessible to large operators who can afford the costs of operating across multiple jurisdictions. Therefore, the barriers to entry for smaller gambling brands are going to increase, which means fewer iGaming or sports betting brands to choose from for us as players.
Let us know what you think in the comments, or head over to the Casinoplusbonus Online Gaming Regulations topic and have your say.
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