Irish Minister for Finance Paschal Donohoe put an end to a major debate on Wednesday – as well as the speculation surrounding it – as he stated that there will be no rise in the 1% tax level for gambling operators in the EU nation. With one of the lowest tax rates in the world for gambling operators, there was some pressure on the government to at least double that rate. A rise of just 1% would pull in at least €50 million from bookmakers across Ireland.
Alongside this announcement Mr. Donohoe did suggest that changes may be brought into the 2019 budget. One option on the table is to tax bettors rather than bookmakers, while another is to tax bookmakers on gross profits rather than the current revenue-based system of applying tax.
Of course, the bookkeepers are always going to argue vociferously against any such hikes, but I suppose that even a hike of 1% seems like a lot when you’re sitting on a 1% level. After all, it’s double the rake! The Irish Department of Finance were hit by a full thirteen submissions against the proposal to raise the tax rate, arguing that it would create job losses and force the closure of smaller operators.
The proposal for bettors to be taxed raised concerns from the gambling awareness sector, with one submission arguing that this would stimulate bettors to gamble with unlicensed providers.
Given the uncertainty about the impacts of such measures, industry resistance and concerns over implementation, the Finance Minister determined that a betting tax review would not take place as part of 2018’s budget, much to the relief of the industry.
