Brian Walsh (Galway West, Independent) | Oireachtas source

Even in horse racing, there are opportunities to bet on the number of horses that will fall or the winning distances. All of these are available online and we would not associate them with our traditional bookmaker. It is very important that such revenue is not lost to the State, and that is what this legislation allows us to do. It allows us to avail of the 1% levy on all bets that are placed by people domiciled here in Ireland. It is important that we capture that income.

Traditionally, and in recent years in particular, the 1% levy has been ring-fenced for the benefit of the horse racing industry. This approach should continue once the legislation to facilitate the taxation of online betting services is enacted and revenue accruing from the levy increases. This additional revenue, which will probably be a multiple of the current income, should be ring-fenced for the horse racing industry because it is in crisis, with attendances at meetings declining significantly and many racetracks in need of significant investment. While some tracks such as Leopardstown, Galway and Punchestown, which hold large festival meetings, continue to do well, many smaller racetracks are suffering and require capital investment. Further legislation will be required to capture the 1% levy in the online betting business.

As Deputy O'Donovan and other speakers noted, horse racing is an important industry. Betting, horse and greyhound racing and related industries employ more than 30,000 people. Horse racing is arguably one of the sports at which Ireland is most successful internationally. The Coolmore Stud, for example, breeds some of the best flat racing stock in the world and most of the top jockeys operating in Ireland and the United Kingdom are Irish. Tony McCoy recently achieved a phenomenal feat when he rode a winner for the 4,000th time. McCoy is constantly breaking records. Mick Kinane, another Irish jockey on the flat, won all the various group races over the years. Ireland has recorded many significant sporting achievements in horse racing. It is important, therefore, that the industry is protected and receives investment.

As the Leas-Cheann Comhairle will be aware, Galway hosts a highly successful racing festival each year. The event is worth in excess of €60 million to the local economy over the course of festival week and must be protected and enhanced.

Funding must be made available to look after horse owners, the lifeblood of the industry without whom one would not have any activity. A different Department is considering the introduction of a ban on the sponsorship of sporting events by alcohol companies. While this proposal has merit in respect of certain sports, the horse racing industry traditionally attracts a more mature audience than other sports and horse racing meetings are not often attended by youngsters. The industry should be protected. Drinks companies sponsor all the major races at meetings held at the large tracks such as Galway, Punchestown, Leopardstown and Fairyhouse. A cloud hangs over the future revenue stream from sponsorship by alcohol companies and the State should invest heavily in the horse racing industry given its importance to the wider economy.

I welcome the Bill and look forward to the subsequent enactment of legislation required to capture revenue from online betting. I commend the Government on introducing the Bill.

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