McDowell accused of 'u-turn' on casino regulation

Minister for Justice Michael McDowell has been accused of doing a "humiliating u-turn" on proposals to ban casinos in the State, after he announced plans to regulate the industry instead.

Mr McDowell signalled his intention to ban casinos in May, claiming they were not generally of benefit to wider society and that they could be used to hide illegal activity and money laundering.

There are currently around 20 such gambling clubs in the State and, although technically they are illegal, the 50-year-old laws covering the area make it difficult to close them down.

Ireland is one of only two out of 25 member states in Europe to outlaw such clubs. The Minister told the Dáil he had prepared new provisions to copperfasten provisions of the Gaming and Lotteries Act 1956 and shut down casinos.

But after a Cabinet meeting yesterday, Mr McDowell conceded the Government is now preparing for a regulatory commission.

"We've had a discussion on this matter in Government at the moment and the Government has asked me to come back now with the proposals for a regulatory approach rather than an outright prohibition approach," he said.

"The fact is, the Government's position is changing on this issue," he told RTÉ radio.

"What I did was generate proposals to make the the Gaming and Lotteries Act philosophy effective but what I also decided was to consult with my colleagues in Government to whether that was the path they wanted to go - was it too nanny state-ish, was it illiberal, was it unrealistic at this stage to simply say that that kind of activity could never happen in Ireland?

"But we're not going to turn Ireland into a Las Vegas-type gambling centre for Europe or anything like that," Mr McDowell said.

Fine Gael justice spokesman Jim O'Keeffe said the Minister had "been forced to make another humiliating u-turn on his announced intention to close casino clubs".

"He had previously claimed, without producing any evidence whatever, that the clubs offered scope for money-laundering and the proceeds of crime," Mr O'Keeffe said.

"He had also claimed to be reflecting current Oireachtas policy even though the issue of gaming and gambling had not been comprehensively discussed in the Dáil for 50 years, since the introduction of the Gaming and Lotteries Act 1956.

"The real reason was the Minister's personal view that casino clubs are socially undesirable despite the fact they operate with thousands of law-abiding members and never come to public notice.

"I don't see any real difference between casino club activity and betting on the dogs at Shelbourne Park, horses at the racetrack or in a bookie's office. Fine Gael favours an approach which accepts that adults have rights but also personal responsibilities for their own actions, gambling and otherwise."

Mr O'Keeffe said the Government's approache appeared to be to allow the Minister for Justice to "shoot his mouth off" on this and many other issues "but when it comes to the crunch, to rein him in".

Labour Party TD Ruairi Quinn said Mr McDowell should "stop gambling on high-profile statements and start running his brief properly".

"After his flip-flop on café bars only a few months ago, when the Fianna Fáil backbenchers sandwiched him quite effectively, his public pronouncements on casinos have now been shown to be nothing but a throw of the dice," Mr Quinn said.

"He showed his hand before knowing what others at the Cabinet table held. This is yet another example of how this Government is falling apart at the seams. Casinos should be strongly regulated, but there is no logic in banning them altogether."

Defending her Cabinet and PD party colleague, Tánaiste Mary Harney denied that Mr McDowell was forced to do a u-turn on his plans.

"I think the Minister for Justice brought forward his proposals to Government, he wanted an open discussion at Government, he wanted to take soundings from his Cabinet colleagues and the Minister for Justice accepted it," she said.

Mr McDowell will now establish a working group to examine how to regulate casino-style operations.

In a statement this morning, he said: "I have made no secret of my concerns about the ease with which unregulated casino operations can be used by criminal elements for money-laundering."

"This is not just my view; it is internationally recognised as a risk factor in tackling issues around the proceeds of crime."

He said his proposals represent "a regulatory rather than a prohibition approach" to gambling.

Additional reporting: PA