The Gambling Regulatory Authority of Ireland (GRAI) is seeking insights from various stakeholders and individuals affected by gambling-related issues to inform its development of the Social Impact Fund.
This initiative stems from the Gambling Regulation Act 2024, which was passed by the Irish parliament in October. This legislation established the GRAI with the dual purpose of regulating gambling activities and creating the Social Impact Fund. This fund will be financed by a compulsory levy, aimed at facilitating research and providing services for those enduring the consequences of gambling addiction.
Funds generated will primarily come from industry participants, earmarked for a range of initiatives including research projects, community programs, and educational efforts aimed at addressing problematic gambling behaviors. Additionally, some treatment initiatives will also benefit from this financial support.
While the GRAI will supervise the fund’s implementation, the Department of Justice will maintain oversight, having authority over fund allocation.
Engaging with Stakeholders: The Role of Questionnaires
To kickstart the Social Impact Fund’s development, the GRAI has devised four questionnaires intended to gather diverse perspectives on the effects of gambling addiction in Ireland.
These questionnaires aim to reach individuals with personal experiences of gambling addiction as well as those who provide addiction-related services and support; they will also gather feedback from those indirectly affected, such as friends and family members of individuals facing gambling issues.
Pobal, an NGO focused on community development, is collaborating with the GRAI to manage the fund and has prepared these questionnaires.
The feedback collection commenced on April 14 and will conclude on May 15.
In addition, GRAI plans to establish consultant panels to assist in framing the regulatory landscape, incorporating input from individuals with firsthand experiences of gambling harm—a move the organization views as a top priority.
Funding Mechanisms for the Social Impact Fund
Concerns regarding the funding of the GRAI were raised during parliamentary discussions surrounding the new Gambling Act. Deputy James Browne, the bill’s sponsor, clarified that funding would come solely from the industry through levies, thus avoiding any financial burden on taxpayers.
The GRAI is responsible for determining the specifics of the levy which will secure the Financial resources for the Social Impact Fund. The percentage of a licensee’s turnover, which will contribute to this fund, will ultimately be decided by the Department of Justice.
GRAI CEO Anne-Marie Caulfield reinforced the point that licensed gambling entities would be subject to this levy, and ministers will finalize the applicable percentage directed toward the Social Impact Fund.
Further, if operators fail to refund players post account closure, those funds will automatically be allocated to the Social Impact Fund. However, organizations holding charitable licenses for charity lotteries are exempt from contributing.
Drawing Parallels with the UK’s Statutory Levy
The establishment of the Social Impact Fund draws notable parallels with the recently instituted statutory levy in the UK. This UK initiative, introduced in April, aims to gather £100 million (€120 million/$126 million) to tackle gambling-related harms, based on a percentage of industry revenues.
According to updates from the Gambling Commission, remote licensees will contribute 1.1% of their gross gambling yield to support this cause.
Nonetheless, some experts, including a panel of gambling harm researchers in the UK, have expressed reservations about the influence of the gambling industry on research funded by this levy. Ethical concerns have historically made researchers cautious about accepting industry-funded research, potentially stifling the quality and quantity of independent studies in this domain.
Professor Sam Chamberlain from the University of Southampton noted that a lack of credible research in the gambling field may stem from researchers’ hesitance to take funding from the industry. He criticized the existing framework, noting it has often funneled financial support through a single large charity, raising questions about the efficacy and integrity of the resultant initiatives.