Ireland online tax bill clears final hurdle
Long-awaited bill, which will see sportsbooks taxed at 1% of online turnover, expected to come into force in H2
Ireland’s online betting tax, which is expected to hit the industry for 25m, will come into force later this year after the much delayed legislative bill cleared its final parliamentary hurdle yesterday.
The Betting (Amendment) Bill 2013 has now been sent to the president to be signed into law and once finalised will clear the path for the introduction of 1% a turnover tax, mirroring the rate currently levied in Ireland’s in high-street betting shops.
The final stage before implementation will be for operators to apply for an operating licence from Ireland’s authorities, a process which is expected to be concluded by the end of the summer.
Irish giants BoyleSports and Paddy Power are expected to be hardest by the new tax, with the latter having estimated the levy would have cost it approximately 8m if in place last year.
A spokesperson for Paddy Power this morning told eGaming Review it was fully supportive of the tax but was keen to ensure the levy was fairly enforced.
“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 if they are based in Ireland or not,” the spokesperson said.
Michael Bent, finance director at Cork-based BoyleSports, appeared to echo Paddy Power in calling on the government to ensure Ireland-based businesses wouldn’t be disproportionately impacted.
“We’ve always said we’d have no issue with an online betting tax so long as it is implemented fairly and this bill is the first step in making sure that happens,” Bent said.
“However, this is only the first step and it still remains to be seen whether this can be implemented in a way which doesn’t put Irish businesses at a commercial disadvantage,” he added.
Meanwhile Betfair CEO Breon Corcoran, whose exchange business will be levied at 15% of revenues, told eGR his firm would “swallow” the tax and continue to compete as normal.
The passage of the bill has been far from smooth – the government first announced plans in 2011 but faced a number of stumbling blocks including concerns raised with the European Commission by the Maltese authorities in December.
However Ireland’s minister for finance Michael Noonan described the bill as a major step forward for its regulatory framework and would now prepare a timeframe for operators to apply for a licence under the new tax regime.
“The Betting Amendment Bill is just a first step in providing for a well regulated betting and gambling regime,” Noonan said.
“This Bill will allow for the regulation of those providing betting services by remote means to persons within the jurisdiction for the first time,” he added.
The tax is expected to raise approximately 25m a year for the Irish Treasury.