Paul Connaughton (Galway East, Fine Gael) | Oireachtas source

This legislation represents the enactment of a provision of the Finance Bill 2011 to extend betting duty to remote betting and online betting. It establishes the necessary infrastructure or regime for collection of this tax. It will be an offence to take a bet from an Irish person by remote means unless the betting facility has a bookmaker's licence or remote betting intermediary's licence. A person with an ordinary bookmaker's licence will also be permitted to take bets by remote means up to a certain value of betting turnover and prosecutions under this legislation can be taken in the District Court in the first instance.

A number of national conversations are taking place about our drinking culture, the obesity epidemic and future health implications. It may be high time that we had a national conversation about the devastating effect of gambling on many families. I refer to the innumerable television advertisements for online poker and online casinos and the number of betting applications available for use on smart phones as evidence that it is time the Government took firm action to regulate this industry.

The boom saw an increase in the prevalence of betting shops on our high streets, but these have become a casualty of the downturn and the move to online betting. Horse Racing Ireland has estimated that bookmaker betting expenditure fell from €5.4 billion in 2006 to €3.7 billion in 2008 and €2.7 billion in 2011. These are staggering figures. Horse Racing Ireland estimates that the online betting industry takes €1.6 billion from Irish residents although it is difficult to estimate how much revenue is leaving the country by way of online betting. I note that tax experts believe that the enactment of this legislation should raise €14 million a year. A portion of this expected €14 million revenue, if it materialises, should be ring-fenced to provide funding for addiction centres dealing with gambling.

Like many other Deputies I have heard harrowing accounts of families trying to pick up the pieces when a loved one has become addicted to gambling. The move to online gambling has made the problem more difficult to manage as smart phone applications mean that gambling is available at all times.

I acknowledge the great work of addiction centres but these centres need further support in their work and the funding that should accrue from online betting sources should go some way to help to pick up the pieces when the relationship with gambling gets out of hand. If €1.66 billion is being spent by Irish residents in online betting and a percentage of those people encounter problems with gambling, then it is only right and proper that the tax duty accruing should be used in part to support those providing services to people with gambling problems instead of promoting the gambling industry.

I note the Department of Justice and Equality is preparing the gambling control Bill which will update the legislation on gambling and regulate Internet gambling. One aspect of gambling I hope to see addressed is the matter of the regulation of casino opening hours to ensure all-night gambling sessions in casinos do not become a regular feature of Irish life. Many other issues relating to the supervision of casinos are being addressed in the forthcoming legislation.

This Bill reflects the Government's determination to change and adapt in the face of changing economic circumstances. The move to online gambling is one facet of life that will take many years to address properly. However, I welcome this legislation which aims to license those involved in online betting in Ireland and which will institute a tax collection regime for these bets in order that the revenue will accrue to the State. The Government will need to provide services to those for whom gambling has become a problem.

I acknowledge the need to protect and enhance the Irish horse and greyhound industries. The Irish thoroughbred horse industry was estimated to be worth €900 million to the economy in 2010. It provides employment for more than 15,000 people. This legislation is timely and welcome but I urge that moneys should be set aside to address gambling problems.

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