Ireland plans to regulate, not ban, casinos

DUBLIN, July 20 (Reuters) Ireland plans to regulate private members' casinos -- the only type allowed -- rather than banning them as originally mooted, Justice Minister Michael McDowell said today.

McDowell had been expected to propose legislation this week to close down the casino-style clubs, which can operate because of a loophole in Irish gambling law, after saying ''the great majority of people'' felt they were undesirable.

But the government has now decided to establish a working group to consider legislation to regulate the clubs, 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,'' McDowell said in a statement.

''Having considered a number of approaches ... the government has now decided that the best course is to set about examining ways of ensuring that this industry is tightly regulated.'' He stressed the government's approach would not involve prohibition but added there were no plans to legalise ''Las Vegas-scale operations''.

The Justice Department is finalising details of the proposed working group, which could look at setting up a regulatory authority and whether such an authority should have the power to set trading standards, inspect premises or halt trading.

Reuters MQA RS1635