Irish Online Gambling Tax Worth €25m AnnuallyPublished October 15, 2014 by Mike P
Ireland is set to introduce new legislation that will raise €25 million in gambling taxation from foreign operators.
Irish minister for finance Michael Noonan has been striving to implement an online betting tax since taking up his post over three years ago. Prior to the arrival of Noonan, Dermot Ahern previously held the post. Ahern had also been trying to introduce an online gambling tax, but since 2009. Government estimates suggest that such a tax would generate approximately €25 million a year.
€1.6b Revenue for Operators
At the core of the proposed legislation is a desire to tax foreign gambling operators who are targeting Irish residents without being registered in the country. The remote gambling services provided in Ireland are said to generate revenue of approximately €1.6 billion annually. Again, the proposed tax would be €25 million of that figure. From the annual tax revenue, it is proposed that up to €11 million will be contributed to capital as well as horse racing and greyhound racing.
Changes to 1931 Legislation
The Betting (Amendment) Bill 2013 is at last set to be implemented, providing a long awaited update to legislation that had dated back to 1931 in some aspects. Noonan had been so eager to introduce change that he made the alteration of the existing legislation his first act as minister of finance.
An important factor in promoting the change to Irish politicians has been Noonan’s promise of funding for the bloodstock industry to boost the rural economy. But Horse Racing Ireland is a more specific beneficiary, with the organisation set to receive €5 million in funding to invest in race courses.
Paddy Power Welcomes Tax
From the gambling operators present in Ireland, Paddy Power has openly welcomed the change in legislation. In fact, Paddy Power stated that the company had collaborated with the government. Paddy Power is eager for all Irish-based operators to be competing in a fair market with foreign operators.