Brian Walsh (Galway West, Independent) | Oireachtas source

I thank the Government Whip for allowing me the time to speak on this important Bill. It is a very important Bill which will facilitate taxing of online betting for the traditional bookmakers who operate here and for the relatively new practice of betting exchange businesses like Betdaq and Betfair, who have been winning an ever increasing percentage of the betting turnover in the State. All of the major bookmakers who operate online services here are domiciled in other countries, which effectively means that they avoid having to pay the 1% betting tax on bets that are placed. I remember that tax in the past being as high as 10%. It was funded by the punter himself, but as a result of a considerable reduction in the tax over the years, it is now absorbed by the betting industry. In fairness, the betting exchanges are willing to embrace this legislation and see it as necessary.

Turnover over the past few years has fallen sharply, from €5.4 billion 2006 to around €2 billion in 2013 and part of the reason is the downturn in the economy. People have less disposable income to direct towards betting activity but a considerable factor is that more and more people are availing of betting opportunities online with betting exchanges and even with traditional bookmakers. It is more convenient to do so and the traditional high street bookmaker is suffering as a result, with more and more of these shops consolidating their operatons. The bigger players such as Paddy Power, Boylesports and Ladbrokes are all purchasing the smaller independent and multiple bookmakers, and in many cases they close the shops and consolidate their existing high street businesses.

There are now greater online betting opportunities available. I remember on budget day some of the staff here in the Oireachtas telling us about opportunities to bet on what colour tie the Minister would wear, or how many sips of water he take from his glass, the length of his speech and so on. I can give the Minister of State some comfort as he is long odds on to retain his seat in Louth, according to the bookmakers, who rarely get it wrong.

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