Oireachtas Joint and Select Committees

Wednesday, 19 November 2014

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance

Finance Bill 2014: Committee Stage (Resumed)

2:55 pm

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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I move amendment No. 67:


In page 66, between lines 15 and 16, to insert the following:
"Report on betting duty
47. The Minister shall, within one month of the passing of this Act, prepare and lay before Dáil Éireann a report on options available for the introduction of a rate of 3 per cent betting duty for online and in-shop bets to be paid by the customer.".
We have dealt a number of times with the issue of a 3% betting duty for on-line and in-shop bets to be paid by the customer. We have raised this time and again and there were clear indications from a previous Minister of State and the Minister that this would be considered when the on-line element was up and running, as is now the case. It is appropriate that we examine the possibility of a 3% rate and the provisions that would allow for that to be placed on the customer instead of the shop. A number of betting outlets across the State find it difficult to maintain their presence as a result of the move to on-line gambling, which is understandable. They incur a betting duty and a 3% duty placed on the customer, as it was years ago, would not only benefit the Revenue Commissioners through an additional tax take but it would provide a reprieve for those shops. They are saving the 1% that they must find from their own profits, so it would be a 1% boost for them in effect.
We should consider this measure and the 3% rate is appropriate. It is at a level where larger outlets would not be able to take on the costs and it would force them to pass it to the customer. Anybody going into a bookmaker's office would not see a 3% charge as unique. If a person uses BETDAQ or Betfair, that person is already paying charges for the laying of bets. If appropriate, the levy could be put on winnings. Over 93% of money taken in by betting shops are paid out in winnings so almost 100% would be recouped in the betting duty element. The Government has in the past indicated it was open to such a measure and now is the time to consider the options for increasing betting duty, with the levies put on the customer instead of the business.