James Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

I compliment the Minister for bringing this legislation before the House, which is designed to ensure fair and equal treatment of all bookmakers and the betting exchanges offering services in almost every large and small town in Ireland. This legislation will also include bookmakers operating at point to point meetings and local and national racecourses throughout Ireland, including greyhound tracks. The point to points have already kicked off and indeed will run through the remainder of the winter and spring seasons. The Betting (Amendment) Bill 2013 introduces a new licensing system. Under the Finance Act 2011, betting duty was extended to online and off-shore telephone betting. Before this extension takes place, a new licensing regime for online betting needs to be put in place. This new system will create two new licences - the first being a remote bookmaker's licence for those offering normal bookmaking services by remote means and the second is a remote betting intermediaries' licence for those offering betting exchange services that allow individuals to bet against each other with no risk to the intermediary.

This Bill will ensure that the taking of bets from Irish people by remote means will be an offence unless the betting agency has a remote bookmaker's licence or a remote betting intermediary's licence.

Many Irish bookmakers have set up overseas websites to allow Irish residents to gamble online. As these websites are outside our jurisdiction, the companies do not pay the 1% betting tax. This alarms us all. Many commentators, including Horse Racing Ireland, blame online betting for the fall in betting in bookmakers from €5.4 billion in 2006 to €3.7 billion in 2008 and €2.7 billion in 2011. These online operations are offshore and do not pay betting tax or other taxes, such as corporation tax, on their Irish profits.

I commend the landowners, particularly in the midlands, who give of their land so generously for field events, such as the point-to-point races I mentioned. Will the Minister consider the possibility of giving some sort of an allowance towards insurance for such events at some future date, as the cost of insurance is killing them off?

This Bill shows the Government's continued work in keeping a well regulated and up-to-date betting industry. Later this year, the Gambling Control Bill 2013 will be before the House. As mentioned by others, that Bill will modernise and reform gambling laws and regulate Internet gambling, which is basically unregulated in Ireland.

The Betting Act 1931 is the main legislation that regulates betting in Ireland, whereas the Finance Acts deal with the imposition and collection of betting duty rather that the regulation of betting. The Horse and Greyhound Racing Act 2001 removed the sections of the 1931 Act that made betting with individuals outside Ireland an offence. This effectively legalised Internet and telephone betting as long as a bookmaker operated offshore. This form of betting is not liable to betting duty. Remote betting organisations do not need certificates of personal fitness or bookmaking licences to offer Irish residents bookmaking services over the telephone or Internet. Therefore, remote betting is effectively unlicensed, unregulated and untaxed in Ireland. When this Bill and the Gambling Control Bill come into effect, remote betting will be brought under a levy and regulation remit.

The new licensing system for remote operators will serve the important public interest in preventing crime and protecting consumers against fraud and will ensure that all businesses offering betting services from Ireland or to persons in Ireland are regulated appropriately. Once the Bill is enacted, any bookmaker offering bets to punters within the State must be licensed to do so and must have paid the appropriate licence fee. Any such bets taken will be subject to betting duty.

The Bill will provide for the issuing of certificates of personal fitness by a Garda superintendent or the Minister for Justice and Equality as appropriate and updates the 1931 Act around the issue of licensing by the Revenue Commissioners. It also allows a traditional bookmaker to take bets by remote means up to a value of €250,000 or 10% of total turnover, whichever is lower. The enforcement of the Bill will be critical. If we fail to levy the new duty on overseas operators, it could give them a competitive advantage. It is important for current bookmakers that we create a level playing field where they are not disadvantaged by competition from online bookmakers.

I do not doubt that the Minister will address a further issue, that being, the betting industry's contribution to Ireland, which has been good for many years. In France, 9.6% of betting turnover is returned to racing, approximately 54% or 55% of training expenses are covered by prize moneys won and €35 million in premiums are distributed to the owners of horses bred in France. In France, all prize moneys have consistently increased during the past 14 years. In comparison, only 1.6% of betting turnover is returned to racing in Ireland and only 25% of expenses are covered by prize moneys won. Furthermore, prize moneys have decreased from €60 million in 2008 to €45 million in 2012, a 25% fall. This is worrying, as a similar decrease in prize moneys contributed to the rapid collapse of the Italian thoroughbred industry in 2008. Compared with the UK, Ireland has 25% less net prize money per individual runner and 14.2% less net prize money per horse in training. The sector also receives less economic support per job - €4,096 per job versus €5,051 in the UK or €14,914 in France.

Deputy Finian McGrath addressed the greyhound industry and its benefits to the economy. The betting industry benefits from the support of a large segment of the public, including repeat visitors. Last year, for example, more than 3 million people attended football matches, be they Gaelic, soccer or rugby, and nearly 1.5 million people attended race meetings or point-to-points. These events are a unique blend of sport, hospitality and betting excitement and have been a part of Irish culture for hundreds of years. Horseracing is a source of national pride, as Ireland is globally recognised for its excellence in breeding and training, with Irish horses and jockeys constantly ranked among the best in the world.

A recent Ipsos MRBI survey showed that 80% of people felt strongly that horseracing played an important role in Irish heritage. Horseracing ranks as second only to rugby as the sport that provides Ireland with the most international prestige. This should always be remembered.

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