Ireland’s GRAI to consider tiered licensing fee model
The Gambling Regulatory Authority of Ireland (GRAI) is poised to reassess its licensing fee structure, moving towards a model based on Gross Gambling Yield (GGY) rather than turnover. This change follows a public consultation that highlighted significant concerns from industry stakeholders.
In response to the consultation feedback, GRAI is also considering implementing five-year licensing terms and a tiered fee structure. Operators expressed apprehension over the existing framework, particularly regarding the costs and timeframes associated with obtaining gambling licenses.
Under the current provisions of the Gambling Act of 2024, “turnover” for Business-to-Business (B2B) licenses is defined as “the gross profit on the sale or supply of relevant gambling products or relevant gambling-related services.” This approach has raised flags among operators, prompting calls for reform.
Established under the Gambling Regulation Act 2024, GRAI’s responsibilities include overseeing the development of Ireland’s gambling regulatory framework and the issuance of licenses for various gambling activities, excluding the national lottery.
Throughout a four-week public consultation held in April and May 2023, GRAI received an array of 27 submissions primarily from industry operators. A significant portion of these operators raised concerns related to the high application fees and the need for clarification regarding the fee calculation methodology.
Concerns Over Turnover-Based Fee System
Operators voiced specific apprehensions about the proposed turnover-based fee system, fearing it would create a disconnect between fees and actual revenue generated. This could particularly impact operators with niche betting offerings, as the system may disproportionately affect their profitability.
In response, GRAI indicated that it would explore a tiered licensing fee model centered around GGY or a hybrid approach incorporating both turnover and GGY metrics.
The baseline fee of €20,000 for remote licenses has been flagged as a significant increase compared to the existing system. Moreover, the flat fee of €1,200 per premises has raised concerns about fairness, especially for smaller operators who may bear a disproportionately larger burden.
To address these concerns, GRAI is examining the possibility of a premises fee aligned with the scale of operations, potentially factoring in variables such as the number of gaming machines available.
While some industry stakeholders suggested aligning Ireland’s fees with the UK model, GRAI clarified that such comparisons are challenging due to differing regulatory frameworks. Many obligations that GRAI will oversee are under the jurisdiction of local councils in Great Britain, rather than the Gambling Commission.
Industry Push for Extended License Terms
In its report, GRAI acknowledged requests for longer licensing terms, considering a shift to five-year licenses instead of the initially proposed three years. Operators highlighted the brevity of the three-year term as incongruent with standards in other EU nations, where five-year licenses are common; France and Germany both use this term, while Greece extends to seven years and Belgium to ten.
Shorter licensing terms were perceived to impose additional administrative burdens, fueling further calls for reform. GRAI is also contemplating the possibility of longer licenses for operators demonstrating a history of compliance, enhancing operational stability in the industry.
Addressing the need for transparency, the regulator plans to clarify financial terms such as “turnover” and publish comprehensive guidelines regarding license renewal procedures.
As part of its ongoing efforts, GRAI has invited industry players to register their interest in gambling licenses starting March 27, providing insights into the expected volume of applications. GRAI CEO Anne-Marie Caulfield has voiced optimism about initiating the formal application process for betting licenses—both online and land-based—by the end of the year, with online gaming licensing phased in early 2026.
GRAI will offer three types of gambling licenses: Business-to-Consumer (B2C), Business-to-Business (B2B), and charity licenses. However, GRAI has indicated that charity license applications might not commence this year.
