Gambling regulator takes prediction market firm to High Court

High Court proceedings have commenced against a prediction market firm operating in Ireland, according to Anne Marie Caulfield, head of the Gambling Regulator Authority of Ireland (GRAI). These firms allow individuals to speculate on the outcomes of future real-world events. Caulfield revealed that the targeted company is "one of the largest prediction market operators in the world who was operating here in Ireland," though she declined to name it.

Caulfield noted that many global prediction market companies cease operations in Ireland after the GRAI contacts them regarding regulation. "For the vast majority of cases where we've intervened, they [global prediction market companies] have withdrawn their sites," she said. However, for companies that do not comply, the GRAI can pursue legal avenues, including obtaining a court order to block access to their sites and related funding.

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For the vast majority of cases where we've intervened, they [global prediction market companies] have withdrawn their sites.

France's gambling regulator recently instructed internet service providers to geoblock Polymarket, a prominent prediction market platform. While the GRAI currently lacks this direct authority, it is collaborating with Coimisiún na Meán to gain "trusted flagger status," enabling the removal of suspected non-compliant sites. The GRAI has already issued warning letters to companies.

The GRAI began issuing licenses this month, taking over from Revenue. Caulfield described the licensing process as "onerous," involving vetting financial standing, data protection, and consumer protection standards. The GRAI will regulate remote gambling this year and plans to extend its oversight to gaming platforms next year. Licensed operators will be subject to consumer protections, such as gambling limits and restrictions on credit card use.

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But in the instance where they don't do so, we can go to the High Court and get a blocking order for them, a blocking order for access to the site and also in relation to the funding involved.

Caulfield warned that non-compliant operators face significant penalties, including fines of up to €20 million (10% of turnover), license suspension, or complete revocation. "These are new sweeping powers," she stated, emphasizing a "fundamental overhaul of the existing system." The GRAI is establishing its compliance regime to conduct inspections and ensure adherence to regulations.

Additionally, the Gambling Regulation Act 2024 mandates the creation of a Social Impact Fund. This fund will channel significant public investment into prevention, education, treatment, recovery, and research related to gambling harm in Ireland, financed by a levy on the gambling industry. The specific contribution rates and the fund's opening timeline are yet to be announced by the Department of Justice, but the GRAI is actively working on it in the background.

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These are new sweeping powers, they're a fundamental overhaul of the existing system.