Will empower revenue to collect taxes from licensed online operators

Irish government approves betting bill amendments

2014-06-26
Reading time 1:03 min
(Ireland).-Ireland’s oft-delayed Betting (Amendment) Bill would tax online sports betting for the first time, with traditional bookies paying 1 percent of turnover while betting exchanges like Betfair would pay 15 percent of betting profits. The changes would apply to all Irish-facing operators.

The latest incarnation of the bill was introduced last summer and passed the second stage in January, although few expect it to become law later this year. On Tuesday, Finance Minister Michael Noonan announced that he had secured Cabinet approval for an amendment that would empower Revenue to collect taxes from licensed online operators and deal harshly with any operator lacking an Irish license. 

Ireland is still working on establishing a dedicated gambling regulator, so the Justice Minister is responsible for policing “unlicensed remote operators.” Under Noonan’s amendment, Revenue would assume this role. The bill has suggested enforcement measures that could include payment and IP blocking of unauthorized betting sites, plus prohibitions on promoting their wares to Irish punters via advertising or sponsorships. 

Meanwhile, Ireland’s land-based bookies’ pleas for government to get the lead out appear to have fallen on deaf ears. Under the existing law, which dates back to 1931, betting shops are required to close by 6:30 PM for six months at a stretch and the latest ‘dark’ period takes effect on September 1. The Bill would curtail this seasonal curfew, which bookies claim results in a net €23.3m cost to the state via lost taxes and increased welfare payments to laid-off shop employees. But with Irish legislators due to take their summer break in July, bookies are bracing for yet another winter of discontent. 

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