by Renee Israel
The Irish government has announced that it is close to finalising plans to
increase taxation on all online gambling bets placed in the Emerald Isle.
In addition, offshore companies will be slapped with a 15% charge on all
Irish bets, according to a statement issued by the Fine Gael government.
The statement said that the government was at an "advanced stage" to present
the changes in Ireland's gambling legislation and go ahead with an increase in
the Irish online betting tax, with hopes to raise €20 million a year. The
government wants to use part of the money to tackle gambling addiction in
Ireland.
Fine Gael Cork South West Deputy Noel Harrington said in a statement: "It was
confirmed to me that legislation that will extend betting duties to include
remote betting and betting exchanges is currently at an advanced stage."
"The Minister [of Finance] reiterated this in his budget speech," said
Harrington. "To date betting duties have only applied to bets placed in betting
shops with bets placed by Irish punters either online or over the phone,
essentially with offshore entities, falling outside the tax net."
He said that the Irish Minister of Finance had been working on widening the
tax base in this area and extending betting duties to offshore bookie, "as well
as introducing a betting intermediaries' duty for betting exchanges."
Harrington admitted that had often been considered an area that was difficult
to tackle.
Irish Gambling Turnover €4.5 Billion in 2011
Gambling turnover in Ireland is expected to reach €4.5 billion this year, up
from €1.1 billion a decade ago and only €370 million in 1991.
However, 1991 saw €37 million earned by the government in duties, a figure
that is expected to drop to just €26 million this year, due to the expansion of
phone and online betting.
"It is estimated that the Exchequer could benefit by up to €20 million in a
full year by extending betting duty," said Harrington, "This money could, and
should, be ring-fenced for addiction services and supports."
The government said that due to the increase in online betting and the growth
of the Smartphone market, it made sense to "tap into this sector" in order to
help those who had gambling addictions.
The Irish government also said that it wanted to send a message to offshore
gambling companies that the country has "an appropriate licensing framework"
which makes it an attractive possibility for investment and employment
opportunities, as well as relatively low taxes.
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