Pat O'Neill (Fine Gael) | Oireachtas source

I thank the Minister, Deputy Noonan, and the Minister of State, Deputy Harris, for attending the House to introduce this important Bill. It is important legislation that will extend the betting levies to remote betting intermediaries and online betting concerns that take bets from Irish customers.

Little did we expect when Tommy Flowers invented the Colossus, the first electronic computer, in World War II to decode the German Nazi Enigma machines that we would today be discussing in this House how betting has changed over the past 50 to 60 years. The Internet has really changed it since it took off in the 1990s. We all know that human beings are very competitive. The first men on earth were always competitive, be it against each other or when watching animals. Betting was always taking place. It is part of human nature to be competitive and to bet on the outcome.

A total of €335 billion is gambled worldwide, so it is a huge industry. We must get the legislation right. In 2009, former Deputy Dermot Ahern, the then Minister for Justice, Equality and Law Reform, sought a review of the gaming industry and the current Minister for Finance, Deputy Noonan, made provision in the Finance Act 2011 to change the betting levies. Approximately €1.6 billion is bet online each year in Ireland. The betting levies have reduced from 33% in the 1990s to 1% in 2010. That is not the subject of the debate today, but it all has a knock-on effect. The Betting (Amendment) Bill will be followed by the forthcoming Finance Bill, which will provide for what the levy will be. It is a means of raising cash for the country. Many of the people involved are making vast profits outside the State. That is the reason we are debating this measure today.

The Betting (Amendment) Bill introduces a new licensing system. There are two new licences, a remote bookmaker's licence for those offering normal bookmaker services by remote means and a remote betting intermediary's licence for those offering betting exchange services that allow individuals to bet against each other with no risk to the intermediary. If the betting levy remains at 1% and given that €1.6 billion is bet online in Ireland each year, it would raise €14 million annually. Since 2002, the Government has had to subvent the horse and greyhound racing fund by approximately €30 million annually. If we levy online betting, this subvention will be lost. Previously, the fund was 100% subvented by betting levies when the rates were higher but since then the Government has had to subsidise it.

The horse racing and greyhound industries are very important, especially to rural areas. I live in a rural area. Some parts of Ireland do not have industries but they might have a local horse trainer or somebody who has a few mares breeding foals. That requires stable lads and transport. There are also race courses, as well as feed companies and farmers to supply feed. It is important.

There are 28,000 people employed in this industry, which benefits mostly rural communities. Also, there are 78,000 people employed in the betting industry at present. Besides changing the way levies are introduced, the Bill also deals with opening hours. We have had varying points of view on whether bookmakers' shops should remain open longer. I think it is logical at this stage because, as Senator Paul Bradford pointed out, one can leave the bookmaker's shop and go on one's iPad, laptop, or telephone and bet 24-7. Therefore, it is logical that bookmakers should remain open. They provide employment, as people have to work in these shops, and especially on shift work if they remain open later. I agree that there should be a prohibition on betting online for persons under the age of 18.

The Bill defines a bookmaker in legislation for the first time. The definition of a bookmaker is a person who in the course of business takes bets, sets odds and undertakes to pay out on winning bets. This is one part of the legislation we have got to get right. We all know there are remote betting services such as Paddy Power, Boylesports and Ladbrokes. In addition, there are companies such as Betfred which allow one person to bet against somebody else and are just providing the service of putting the two people in contact. It is not like a dating site but, technically, that is what it is. I can lay a bet on a horse at a certain odds and another person can take up the auction. This is where the legislation has to be very tight. The briefing provided by the Library and Research Service stated that others who may not consider themselves as being in the business of bookmaking may now come under the definition of bookmaking and thus need a remote bookmaker's licence or a bookmaker's licence and will be subject to the 1% betting duty. The Department of Justice and Equality acknowledges that where individuals are engaged in significant betting exchange activity, which might if they were offline be regarded as running an unlicensed bookmaker's operation, the State should intervene. It is not clear if this is the intention of this Bill. We can give a silly example. I can have a personal bet with somebody in this Chamber. Perhaps Senator Denis Landy might have a better knowledge of the outcome of the match on Saturday, when Kilkenny, hopefully, will beat Tipperary.