Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

I thank all the Deputies for the welcome they have given to the Bill and for their considered contribution to the debate. While the Bill deals with the regulation of the remote gambling sector and provides the basis for the fair and equal tax treatment of all bookmakers, whether traditional or remote, the debate has covered a wide range of related issues.

Several Deputies have commented on the delay in bringing the Bill before the House. There is good reason for this. What the Bill sets out to do, i.e. regulate and tax the remote sector, is remarkably challenging as we are dealing with a sector which, by its virtual nature, does not necessarily have a physical presence within our State. The Bill was originally published in July 2012 but further work was required around compliance and enforcement issues. The Bill was republished last July and was subject to a three month standstill under the EU technical standards directive.

Concerns have been raised by several Deputies in respect of the regulation of the remote sector and the collection of taxes from companies which do not necessarily have a physical presence in the country. There is no doubt that the introduction of a licensing and tax regime for remote bookmakers and betting intermediaries, which in the majority of cases are based outside the jurisdiction, poses significant challenges in terms of enforcement and compliance. However, where a company is licensed by the authorities I believe it is likely to be tax compliant. In the case of companies which are not licensed but continue to offer services within the jurisdiction, the Bill provides a range of powers that may be deployed. If it is found that additional powers are required at any stage in this regard the Government will not hesitate to provide for them.

Several Deputies have commented on the level of betting duty currently in place and have called for an increase in the rate. The relatively low rate of duty is a function of the changes that have taken place in the bookmaking industry in recent years, in particular, the increase in the remote or online sector. The explosion in the use of mobile telephones, laptops and other electronic communication devices has greatly facilitated the migration of punters to the remote sector. Until the playing field for traditional and remote bookmakers has been levelled in so far as taxation is concerned the rate must be kept at low levels.

The Bill will put in place a regulatory framework to allow for the extension of betting duty to the remote sector. This will permit the application of the 1% duty to licensed remote bookmakers and a 15% duty to the commission of licensed betting intermediaries. As the Minister for Finance, Deputy Noonan, has always said, his priority has been to put in place a regulatory and licensing regime for the remote sector. When this is in place all other options around the level and type of tax involved in the betting industry can then be explored.

Several contributions have reflected on the impact of betting on the most vulnerable in our society. The Minister for Finance, Deputy Noonan, shares the views of many Deputies who believe we need to provide adequate protection for consumers. The supervision of operators providing online betting services is a first step in this direction.

Sections 4 and 5 provide that it will be an offence to offer betting services without a licence or to represent oneself as a licensed bookmaker. These sections provide for the relevant authorities to bring forward proceedings in such cases. As has already been pointed out, it is envisaged that the arrangements put in place by the legislation will be temporary in nature pending the putting in place of a comprehensive modern regulatory framework to cover all forms of gambling and afford the greatest protection to those who need it most. This will be achieved through the proposed gambling control legislation currently being prepared by my colleague, the Minister for Justice and Equality. I understand the Minister is progressing that legislation with a view to publication early next year.

An integral part of the regulation of those operating within the system is the certificate of personal fitness required before a licence can issue. Grounds for refusal and revocation of these certificates are set out in section 12 and include where a person stands convicted of an offence under specified Acts in Ireland or elsewhere relating, inter alia, to the conduct of gambling; where an applicant who has formerly held a bookmaker's licence has in the past refused to pay sums due or conducted the business in a disorderly manner; where an applicant is not a fit and proper person under the Criminal Justice Acts; and where an applicant is the holder of a pawnbroker's licence or is a registered moneylender. These are important grounds for refusal or revocation.

Some Deputies have suggested that the additional tax raised should be earmarked to support those with gambling addiction issues or to continue to support the horse and greyhound racing industries. The Minister, Deputy Noonan, is not in favour of hypothecated taxes. However, the additional revenues raised will allow the Government some scope to consider areas of need.

Again, I thank all Deputies for their contributions to the debate. As the Minister remarked in his opening statement, a small number of matters remain under consideration for inclusion on Committee Stage. The Minister is looking forward to a more detailed debate at that time.

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