Peter Fitzpatrick (Louth, Independent) | Oireachtas source

The entire profits of the retail betting sector are in the region of €35 million per year. Doubling the tax from 1% to 2% constitutes a 100% increase which will wipe out all of the sector's profits. In the past ten years there have been 515 closures. If the 2% rate had remained in place, there would have been more. Currently, there are approximately 850 betting shops throughout the country.

Bookmakers are only starting to see a slight increase in business. If this increase goes ahead, it is estimated that it will lead to between 350 and 400 more closures, resulting in job losses of approximately 2,500. This will cost the Exchequer approximately €35 million, with a further €1 million in commercial rates lost. If these shops close it will have a serious effect on families and on subcontractors, window cleaners, local newsagents, plumbers, electricians, shopfitters, computer and IT services, printers and so on. It is estimated that another 900 indirect jobs will be lost. The total number of jobs lost could reach 3,400.

In my town of Dundalk Boyle Sports employs more than 400 people. It is making profits and paying its taxes. It makes no sense to tax turnover and makes far more sense to tax profits. All over the world, bookmakers are taxed on their profits and I do not see why Ireland should be any different. The Minister cannot ask bookmakers that are not making profits to pay tax. He must go after the bigger bookmakers that are making bigger profits and get them to pay more tax. It is important to ensure that small bookmakers survive. This provision has been described as an anti-gambling measure but if we lose 2,500 direct jobs and another 900 indirect jobs, I do not know what will happen. Years ago there was a black market in gambling and the last thing we want is to see that returning. It does not make sense to tax turnover. We should do what every other country does and tax the profits. We must think of the jobs that will be lost and the families that will be affected by that.

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