Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Senators for their contributions, the welcome they have given to the Betting (Amendment) Bill 2013 and their considered contributions to the debate. The Minister for Finance, Deputy Michael Noonan, was present for much of it and I have had the pleasure of being present for the second half of it.

While the Bill deals with the regulation of the remote betting sector and provides the basis for fair and equal tax treatment of all bookmakers, whether traditional or remote, the debate has covered a wide range of related and interlinked issues, as we have seen in the case of Senator Feargal Quinn's contribution and those of other Senators.

Several Senators commented on the slow progress made in bringing the Bill before the House. While that is fair comment, there was a good reason for it. What the Bill sets out to do - to regulate and tax the remote sector - is very challenging, as we are dealing with a sector which, by its nature, does not necessarily have a physical presence within the State.

As Members are aware, the Bill was originally published in July 2012, but further work was required on compliance and enforcement issues. The Bill was republished in July 2013 and there was a standstill for three months under the EU technical standards directive. When the Minister brought forward amendments in the Dáil on the issue of compliance, a further standstill was required.

Concerns have been expressed by several Senators about 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, it is likely to be tax compliant. In the case of companies which are not licensed but which 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 them. It is important to note that this is an honest and comprehensive effort to provide the additional powers required. However, should it become apparent that further powers are required, the Government will not hesitate to provide them.

Several Senators have commented on the current level of betting duty and called for an increase. 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. As we all know well, the explosion in the use of mobile phones, laptops and other electronic communications 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 Minister for Finance believes the rate must be kept at low levels. Most importantly, the Bill will put in place a regulatory framework to allow for the extension of betting duty to the remote sector. This is the most significant development we are debating in the legislation. This will permit the application of a 1% duty to licensed remote bookmakers and a 15% duty to the commission of licensed betting intermediaries. As the Minister has always said, his priority in the first instance has been to put in place a regulatory and licensing regime for the remote sector. When this regime is in place, all other options concerning the level and type of tax involved in the betting industry can be explored. However, until the correct regulatory regime is in place first, other options do not come into play.

Several contributions reflected on the impact of betting on the most vulnerable in our society, and people made valuable and insightful contributions in this regard. The Minister for Finance and myself share the views of many Senators 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.

Some Senators suggested during the course of this debate 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; we heard a contrasting debate on that. The Minister is not in favour of hypothecated taxes. However, the additional revenues raised will allow the Government some scope to consider areas of need.

Some issues were raised during the course of the debate that I would like to respond to and there will be an opportunity to tease them out further on Committee Stage. Senator O'Brien asked about issues raised by the European Commission. Members will be aware this Bill is subject to the European Union technical standards directive and a three months standstill period was invoked on its publication in July 2013, as I have outlined. During this period a number of communications seeking clarification around aspects of the Bill were received from the Commission and responded to by my officials.

Following the amendments made on Committee Stage in the Dáil, a further standstill period of three months was required under the European directive. Arising out of this, the Commission has again raised a number of issues around the Bill, and officials are working with the Commission on these issues. This further engagement means that a standstill period is extended for a further month until October, and we will keep both Houses informed about that.

A number of valid questions and queries were raised on when the Minister will bring forward proposals to tax other forms of online gambling. The Minister intends to examine the options available in this regard. However, his priority has been to ensure that the regulatory regime is developed for the gambling sector, and this will be brought about through the proposed gambling control legislation being brought forward by my colleague, the Minister for Justice and Equality.

The issue of gaming machines on bookmakers' premises was raised. It is important to state these are illegal and are clearly a matter for the Garda.

Senator O'Neill raised the issue of how one defines a bookmaker, and the issue of betting intermediaries. This is something I presume can be teased out on Committee Stage but the Minister is of the view that the definition of bookmakers in the Bill is as comprehensive as it needs to be.

To return to the issue of where the funds go, which was raised by Senator Barrett and Senator Quinn, it is important to state that while traditionally there has been a link between revenues accruing from betting taxes and the allocation to the Horse and Greyhound Racing Fund, there is no hypothecation of these revenues. All receipts from betting will go directly to the Exchequer. The funding of the Horse and Greyhound Racing Fund is a matter for discussion between the Minister for Agriculture, Food and the Marine and the Minister for Public Expenditure and Reform in the context of the annual Estimates campaign. That discussion has to happen annually. The Senators are correct that there has been a perceived link between the two, but any additional revenue collected by the State poses additional opportunities for Government to make regarding the expenditure of public funds and the delivery of services.

Senator Cummins highlighted an anomaly regarding the State-sponsored tote, which allows children as young as six or seven bet when one must be over the age of 18 to buy a lottery ticket or to bet with a bookmaker in this country. I will raise that anomaly with my colleague, the Minister for Finance.

Interesting points were raised that are not directly linked to this Bill from the point of view of the Department of Finance but are important societal questions. Senator Quinn listed a number of them to which I am extremely sympathetic. I do not believe we have to propose a nanny state. The two are not mutually exclusive because the Senator raises serious societal issues that we all see. As gambling has moved away from the bookmakers shop and into the privacy of a home, as it has been easier for children to access devices, and easier to hide addiction because there is not a need to physically leave the house and go to a premises, these pose broader questions that will need to be examined in terms of the whole of Government and the debates we have in this Oireachtas. It is important to note the gambling control Bill which will be introduced by my colleague, the Minister for Justice and Equality.

I thank Senators for their contributions to the debate. As the Minister remarked in his opening statement to the House, a small number of matters remain under his consideration for inclusion on Committee Stage. I am aware other Senators have indicated they may wish to bring forward their own amendments. The Minister for Finance is looking forward to a robust and detailed debate at that stage.