Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

My amendment would not have a negative impact on independent bookmakers across the country but would actually have a positive impact because the amendment is clear that the levy would be placed on the customer rather than the bookmaker. At the moment, all independent bookmakers, large or small, are absorbing a 1% betting duty. They are taking that out of their profits which, as the Minister has suggested, are currently around 7% before operating costs. They have to absorb that 1% now but if we were to apply a 1.5%, 2% or 3% levy to the bookmakers, they would go out of business. The point is to place the levy on the customer which in effect gives 1% back to the bookmakers because they would not have to pay that charge out of their profits. They will be more profitable and it is the customer who would pay the charge.

The Minister made reference to a turnover tax and he is correct about that in respect of online betting and so forth. However, this is what operated in the past. As the Minister mentioned, one could do it on the profits or on the bets. In the past, the rates were 15%, then they were 10% for a long period, then 5%, were abolished totally at one stage and then reintroduced at 1%. If a person goes into a bookmaker's shop to put €10 on a horse, a dog or whatever, he or she will be charged 30 cent under my provision and the State gets that 30 cent. The bookmaker does not have to pay it.

This is a complex area, particularly with the development of online and exchange betting, and that is why we need a report on the area. We are suggesting that a report be prepared on the options available in terms of applying this levy. I understand the Minister's objective of capturing everybody first and then examining the rates but this was first mentioned in the Finance Bill 2011 and it still has not been applied. In that context, I am concerned about the delay, although I understand the issues relating to the European Commission and so forth.

I have engaged with many industry players on this issue. When they heard that we wanted to increase the betting duty to 3%, their initial reaction was that this would put them out of business. However, when we clarified that we wanted to increase the duty to 3% but apply it to the customer rather than the bookmaker, they argued that it would benefit them, save jobs and enable them to keep their premises open.

The Minister made reference to the level of tax and the amount of bets that are placed here. In my view, it would be impossible for the industry to absorb a 3% levy. Some of the larger operators may be able to absorb a 1.5% or 2% levy but 3% is probably beyond even their reach. That is why it should be set at a level that does not allow the larger operators to absorb it because that will only force people to go to them to place their bets and would put pressure on the other operators.

It goes without saying that the fact that we do not have a gambling control Bill is simply not good enough. That should have been developed alongside the original legislation that we passed last year. That said, the Minister's amendment is to be welcomed. It causes concern to the industry that longer operating hours for winter racing is not allowed at this point in time. The original 1931 Act has a cut-off point of 6 p.m. What system operated heretofore with regard to winter racing and winter betting?