Irish betting tax hit by Malta setback
European Commission extends standstill period of Betting Amendment Bill following concerns raised by Maltese authorities
Ireland’s plan to introduce an online betting tax will be delayed until 2015 after Maltese authorities raised a number of concerns related to the country’s Betting Amendment Bill.
The Bill, which has suffered a series of delays since first being tabled in 2011, aims to introduce a 1% turnover tax on all bets placed online within Ireland’s borders in a move which would bring remote gambling in line with the land-based industry.
It had been thought the Bill was on course to be passed before the end of the calendar year having been submitted to the European Commission for inspection during the summer.
This scrutiny, or standstill process, normally takes around three months in order to give European Union member states time to look at the Bill and raise any issues.
And at the weekend Ireland finance minister Michael Noonan revealed Malta had drawn up a detailed opinion of concerns related to the Bill, prompting the Commission to once again extend the standstill period, this time until January.
Although the Commission refused to name Malta, it did confirm it had extended the standstill period due to reservations raised regarding the Bill.
“[â¦] the Commission, and member states, may issue a detailed opinion and/or comments on a draft legislation that falls within the scope of the Directive,” a spokesperson for the Commission told eGaming Review.
“A notification period of three months kicks in when a member states notifies a draft law. Where a detailed opinion is drawn up by the Commission and/or member state(s), the standstill period is extended,” it added.
The levy is expected to raise around 25m per annum for the Irish Exchequer and this latest setback has seen frustrations rise among the country’s leading politicians.
Michael McGrath, finance spokesperson for opposition party Fianna Fáil said Ireland-facing bookies “cannot believe their luck” at the continual delays to the start of the tax and pressed Noonan to make this issue a priority.
Ireland-facing operators could be hit with a double taxation blow next year as planned changes to the calculation of VAT could see offshore online gaming firms pay an additional levy.