Irish betting tax rise to be reviewed
Analysis of controversial measure to be completed in Q1 2019
The impact of Ireland’s planned increase in betting taxation from 1% to 2%, scheduled to take effect in January, will be reviewed by the government during the first quarter of 2019.
Speaking in the Irish Parliament, Paschal Donohoe confirmed the government will conduct a tax analysis of the impact that the controversial measure will have on Ireland’s independent bookmakers.
However, Donohoe said he would stand by his decision to introduce the amended tax rate saying different areas of the Irish economy all need to make contributions to public services.
Donohoe added: “All parties here, at this point, have advocated the need for this sector to make more of a contribution, and I assure them that, for any of the different options they would put forward, they would face similar considerations to those I face today.”
Ireland’s bookmakers have claimed the tax rise would claim up to 3,000 jobs in the industry, making as many as 300 shops “unviable” and effectively sounding the death knell for the Irish sports betting industry.
Boylesports founder John Boyle recently told the Irish Independent the rise would close 56 of the firms betting shops, at a cost of 336 jobs. Fellow bookmaker Ladbrokes recently also announced that it would close its betting pitches at all nine race courses in Ireland.
The aim of the tax rise was to generate €50m for the Irish government, money which would be used to augment existing problem gambling treatment measures. However, a recent Irish Bookmakers Association (IBA) report claimed the rise would cost the Irish government an estimated €35m through job losses.
The IBA has aggressively campaigned against the measure, lobbying local MPs and threatening half-day closures of member betting shops.