Ireland's regulator calls for input on social impact fund

The Gambling Regulatory Authority of Ireland (GRAI) is actively seeking insights from a diverse range of stakeholders and individuals affected by gambling-related harm to inform the development of its Social Impact Fund. This initiative stems from the recently passed Gambling Regulation Act 2024, which represents a decisive step in shaping the future of gambling regulation in Ireland.

Establishing the Social Impact Fund

Under the Gambling Regulation Act, the GRAI not only oversees the regulatory landscape for gambling operations but is also responsible for the establishment and management of the Social Impact Fund. This fund will be financed through a mandatory industry levy, specifically designed to support vital research and services aimed at addressing the multifaceted issues arising from gambling harms.

The revenue generated from this fund will be allocated toward various critical initiatives, including:

Research Projects: Investigations into the nature and extent of gambling addiction.
Community Interventions: Programs designed to assist those in need at a grass-roots level.
Educational Initiatives: Awareness and prevention campaigns targeting potential at-risk groups.

Additionally, selected treatment programs will receive financial support to enhance their service offerings for individuals grappling with gambling-related addiction.

While the GRAI will take the lead in structuring the Social Impact Fund, oversight from the Department of Justice ensures a dual layer of governance, with the authority to dictate the parameters of fund allocation.

GRAI’s Call for Contributions: Four Targeted Questionnaires

To facilitate the fund’s development process, the GRAI has distributed four targeted questionnaires aimed at gathering valuable feedback and insights regarding the impacts of gambling addiction across the nation. These questionnaires are designed to capture perspectives from:

Individuals with Lived Experience: Those who have personally faced the challenges of gambling addiction.
Service Providers: Professionals and organizations actively involved in addiction recovery and support services.
Non-Governmental Organizations (NGOs): Groups working with vulnerable and at-risk populations.
Affected Others: Friends and family members of individuals impacted by gambling problems.

Pobal, a recognized NGO focused on community support and development, has been entrusted with assisting the GRAI in administering these questionnaires. The input collected will be instrumental in crafting an effective and responsive Social Impact Fund.

The call for contributions opened on April 14 and will remain open until May 15. The GRAI has emphasized the importance of this initiative, labeling the fund’s development as a "key priority" for its regulatory objectives.

Financial Framework: How Will the Social Impact Fund Be Financed?

As discussions surrounding the new Gambling Regulation Act unfolded, concerns were raised regarding the financial sustainability of the GRAI. Deputy James Browne, the bill’s sponsor, assured stakeholders that funding would primarily stem from industry levies, thereby minimizing any financial burden on the taxpayer once the system is operational.

The GRAI is mandated to establish the mechanisms for the levy, with the Department of Justice determining the applicable rate based on each licensee’s revenue. Speaking to industry publication iGB, GRAI CEO Anne-Marie Caulfield affirmed that the industry will fully finance the Social Impact Fund, with final percentages being decided by governmental authorities.

Significantly, the Gambling Regulation Act stipulates that unclaimed funds from closed accounts will also be channeled into the Social Impact Fund, thereby expanding its revenue base. Notably, charities and organizations with licenses for charitable lotteries will be exempt from contributing to the fund.

Comparing the Social Impact Fund to the UK’s Statutory Levy

The Social Impact Fund bears similarities to the recently implemented statutory levy in the United Kingdom, which was introduced in April. The UK’s initiative aims to generate £100 million (€120 million/$126 million) for gambling harm prevention by extracting a percentage of profits from industry stakeholders.

According to the latest data from the Gambling Commission, remote license holders in the UK will be required to contribute 1.1% of their gross gambling yield (GGY). However, the UK panel on gambling harm has voiced concerns regarding the potential influence of industry funding on research quality, indicating that many researchers have historically shied away from accepting money provided by the gambling sector due to ethical considerations.

Professor Sam Chamberlain from the University of Southampton noted that the reluctance of reputable researchers to engage with such funding has resulted in a noticeable gap in high-quality research within the field of gambling addiction.

Conclusion

The establishment of the Social Impact Fund by the GRAI marks a significant development in addressing gambling-related harms in Ireland. By prioritizing stakeholder engagement and leveraging industry funding, the GRAI aims to create a robust framework capable of supporting affected individuals and communities. As the gambling landscape evolves, this initiative could pave the way for more informed, compassionate approaches to gambling regulation and support services.