Revisiting Ireland’s Gambling Licensing Structure: Focus on GGY Amid Industry Feedback
The Gambling Regulatory Authority of Ireland (GRAI) is set to reevaluate its licensing fee framework, shifting from a turnover model to one based on Gross Gambling Yield (GGY), following insightful feedback during a recent public consultation.
In light of stakeholder concerns regarding the financial implications and duration of gambling licenses, GRAI is also exploring the introduction of five-year licenses coupled with a tiered fee system. The current legislation, rooted in the 2024 Gambling Act, calculates turnover for business-to-business licenses as the ‘gross profit from the sale or supply of gambling-related products and services.’
Established under the Gambling Regulation Act 2024, GRAI’s primary role involves overseeing the comprehensive gambling regulatory framework in Ireland, along with issuing licenses for various gambling activities, with the exception of the national lottery.
During a four-week public consultation held in April and May, GRAI gathered insights from 27 submissions, predominantly from industry operators. A significant majority voiced concerns over the proposed application fees and sought clarification on how these fees would be structured.
Challenges with the Turnover-Based Fee Approach
The proposed turnover-centric fee model has drawn criticism for potentially creating a disconnect between licensing costs and actual operator revenues. Stakeholders expressed apprehension that the existing fee structure might disproportionately affect niche betting operators within the marketplace.
In response to these concerns, GRAI indicated it would consider transitioning to a tiered fee model based on GGY or a hybrid approach that incorporates aspects of both turnover and GGY.
Operators have highlighted that the baseline fee of €20,000 for a remote license represents a considerable increase compared to previous costs. Additionally, the €1,200 fee per gambling premises was deemed inequitable, as it applies uniformly regardless of operational scale, disproportionately burdening smaller entities.
GRAI is contemplating a more proportional approach to premises fees, suggesting that it may take into account the number of gaming machines at a location.
Operators have also advocated for a fee structure that aligns more closely with the UK landscape. However, GRAI clarified that the regulatory frameworks differ, influencing the fee approaches. Specifically, many responsibilities assigned to GRAI fall outside the jurisdiction of the UK Gambling Commission, being instead managed by local councils in Great Britain.
Demand for Extended License Durations
The regulatory authority also indicated a willingness to explore an extension of the license term to five years, responding to feedback that the initially proposed three-year term was inadequate and inconsistent with practices in other EU nations. Countries like France and Germany operate with five-year terms, while Greece offers seven-year licenses, and Belgium has a ten-year duration.
Stakeholders noted that a three-year term could impose unnecessary administrative burdens, prompting GRAI to consider longer licenses for operators with proven compliance histories.
Addressing the need for clearer communication, GRAI acknowledged that some submissions sought greater transparency regarding definitions of financial terms, particularly ‘turnover.’ The regulator plans to publish clearer guidelines on license renewal policies in a timely manner.
As part of its preparatory steps, GRAI requested the industry to express its interest in gambling licenses by March 27, aiming to gauge application numbers. CEO Anne-Marie Caulfield stated that the authority is on track to initiate formal applications for both online and land-based betting licenses by year-end, with online gaming applications expected to commence in early 2026 and further licensing developments stretching into 2027.
GRAI intends to offer three categories of gambling licenses: Business-to-Consumer (B2C), Business-to-Business (B2B), and charity licenses, although it appears unlikely that charity license applications will open this year.