A new online betting tax that has been introduced in the Republic of Ireland is set to raise an additional €25 million ($31.6 million) per year for the country.
According to the Irish Examiner newspaper, national Minister for Finance Michael Noonan has been attempting to introduce the new tax since assuming the official position more than three years ago.
The new levy on online transactions will mainly target foreign-based bookmakers that offer remote services to customers based in the country.
Such operators currently benefit from a relatively tax-free regime, which in turn means Ireland misses out on millions of euros worth of tax each year.
Under the new law, which will be introduced via the enactment of the Betting (Amendment) Bill 2013, remote bookmakers and betting exchanges providing betting services will be required to obtain a licence in Ireland regardless of whether they have a physical presence in the country.
Such operators will also be liable to pay tax on betting transactions with Irish punters.
Noonan said that up to €11 million of the additional funds will go towards capital and other investment in the country’s horse and greyhound racing industries.
“In recognition of the importance of the Irish bloodstock industry to the rural economy and the anticipated yield of €25 million per annum from betting duty, the government will be providing an additional €6 million a year for three years to the fund for horse and greyhound racing,” Noonan said.
“The government is also allocating additional capital of €5 million to Horse Racing Ireland in 2015 to leverage investment in race courses.”
Irish bookmaker Paddy Power declared its support for the new bill and said it would provide a more “level playing pitch” in the Irish market.
A Paddy Power spokesperson said: “We have worked closely with the authorities in Ireland on the Betting (Amendment) Bill — ensuring that there is a level playing pitch for all companies who operate in the Irish marketplace irrespective of whether they are based in Ireland or not.”
The neighbouring UK market also recently announced it is to introduce a new gambling law that will require overseas operators to obtain a licence.
source : www.igamingbusiness.com
