Michael McGrath (Cork South Central, Fianna Fail)
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4. To ask the Minister for Finance the reason for the delay in extending the 1% betting duty to online gambling; when the duty will be applied to bets placed online; the estimated amount that will be raised on an annual basis; and if he will make a statement on the matter. [4824/15]

Michael McGrath (Cork South Central, Fianna Fail)
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This question relates to the ongoing delays in implementing the Betting (Amendment) Bill 2013, in particular, the 1% levy on online gambling. The continuing delays in implementing that levy are costing the State a lot of revenue. It is estimated that €5 billion of bets have been placed online over the past three years escaping the 1% levy, which has cost us approximately €50 million. I am aware of the technical reasons this was delayed at EU level, but can the Minister clarify whether those obstacles have now been removed and when he expects the 1% levy to start applying to online gambling?

Michael Noonan (Limerick City, Fine Gael)
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The Betting (Amendment) Bill 2013 has been the subject of a number of delays, primarily arising from the need to ensure that the provisions relating to prosecution and enforcement were robust and the need to notify the EU Commission under the EU Technical Standards Directive. The Bill was first published in July 2012 but further work was required around the area of prosecution and enforcement. Given the resulting significant changes to the Bill, it was republished in July 2013. On publication, the Bill entered a standstill period of three months under the EU Technical Standards Directive.

The Bill was amended on Committee Stage in the Dail to allow the Revenue Commissioners to take on the functions ascribed to the Minister for Justice and Equality around compliance. The advice from the Attorney General's office was that these amendments constituted a substantial policy change and, accordingly, had to be notified under the EU Technical Standards Directive. Said notification took place in June 2014, giving rise to a standstill period of three months to the end of September 2014.

At the end of this period, the Department received detailed opinions from the Commission around provisions in the Bill restricting service providers in their engagement with unlicensed remote operators and also raising concerns at the prohibition on any person, who may be licensed by another jurisdiction, from offering betting services to persons within the Republic, unless the person holds a licence issued by the competent authority in Ireland. There interventions under the EU Technical Standards Directive necessitated an extension of the standstill period until January 2015.

The standstill period has now ended and Committee Stage is provisionally scheduled for the Seanad on 11 February.

While a period of time is required to allow remote operations to become licensed, the betting duty will be applied to the remote sector as soon as possible once the legislation has been enacted. It is impossible to accurately estimate the additional revenue which will be raised for the Exchequer. However, using available data, it has been estimated that the extension of the betting duty to remote operations could raise up to €25 million in a full year.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Minister for his reply.

I am glad that this issue is finally progressing and I hope that we can get it over the line on this occasion. The extension of the 1% levy to online gambling was first provided for in the Finance Act 2011, subject to a licensing regime. Then there was a Betting (Amendment) Bill in 2012, as the Minister indicated, a subsequent one in 2013, and the last movement in the Oireachtas was in September last, and it has cost us a lot of revenue.

Perhaps €50 million has not been collected by the State because of the delays in implementing this betting duty. It is, according to the estimate I had, approximately €1.5 million a month and, as the Minister indicated that the annual revenue that could be raised is estimated to be €25 million, it is perhaps more than that. It is significant.

The Minister indicates he hopes Committee Stage will be on 11 February in the Seanad. Is there any indication, once the Bill is enacted, when this can be implemented in practice and the State can start collecting the revenue?

Michael Noonan (Limerick City, Fine Gael)
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Obviously, the delays were unsatisfactory but they were out of our hands. Most of the delays were caused by the directive of the European Commission to which I referred. The Committee Stage is now scheduled for 11 February in the Seanad.

The Deputy will recall that we took out a whole section of the Bill about the longer opening hours for bookies' premises, etc., and enacted it in the Finance Bill. It is now a much slimmer Bill and it is down to the net issues of online betting. I would hope that once we get it enacted and the President signs it, shortly afterwards it will be operational.

Michael McGrath (Cork South Central, Fianna Fail)
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Have the other issues, such as the prosecution and enforcement issues and the technical issues around the implementation of this levy on online gambling, been overcome by the Revenue and the Department? As far as the Minister is aware, will we be in a position once the Bill is enacted to commence the collection of this revenue? Fundamentally, that is the question we need answered.

As the Minister indicated, the opening hours in betting shops have been extended. We are still awaiting the gambling control Bill, which is important in this area. Fundamentally, the extension of this levy to online gambling is about fairness and ensuring that the existing betting offices can compete with the online gambling because, with the emergence of applications, apps, people are gambling 24 hours a day and it is easy to do. The State is missing out on a lot of revenue. I welcome the fact that there appears to be progress. As far as the Minister is aware, once the Bill is enacted, are there other obstacles to prevent this from coming on stream and being live?

Michael Noonan (Limerick City, Fine Gael)
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Agreement between my Department and the Revenue Commissioners was achieved last summer. The further delays were to do with the technical directive from Europe. At the end of the process, there was an objective submitted to the Commission from the Maltese authorities and that had to run its course as well. After that three-month period elapsed, the European authorities are satisfied with the enforcement provisions. There is agreement between Finance and Revenue and there should be no further delays as soon as we enact it.