Gerry Horkan (Fianna Fail) | Oireachtas source

I move recommendation No. 10:

In page 125, between lines 16 and 17, to insert the following:“Report on independent bookmakers sector

36. The Minister shall within three months of the passing of this Act, prepare and lay before the Oireachtas a report assessing the economic impact of the 2 per cent turnover tax on the independent bookmaker sector.”.

We know there is currently a turnover tax of 1% applying to online and in-shop betting. There is also a 15% tax on commission earned by betting intermediaries, which the Finance Bill is going to increase to 2%. This is effectively a 100% increase. The tax on commission is also to be increased to 25%. We certainly recognise the need to tackle gambling addiction, which can be an absolute scourge on society. The recommendation is directed at the turnover tax and its potential impact on individual, independent retail bookmakers. I am sure the Minister of State has received representations on this as we all have, mainly from independent, smaller bookmakers. Perhaps the Acting Chairman, Senator O'Reilly, has received them too. The big betting companies with substantial online presence can absorb the increase but individual retail bookmakers, many of whom are in small towns and village, cannot. I am asking the Government to consider a tax on the individual bet where the customer pays rather than to impose a tax on turnover. A gross profit tax could also be explored. These options would be a better way to protect independent bookmakers. A great deal of analysis has been done by independent economists, including Professor Anthony Foley. I cannot say whether it will happen, but it has been suggested that up to 400 retail bookmaking outlets will close on the basis of this tax and its effect on the marginal ability of smaller firms to absorb charges. That threatens 3,168 direct and indirect jobs, or 2,400 direct jobs and 768 indirect jobs, respectively. These jobs include those of shopfitters, computer services providers, printers and newsagents. That would also remove 400 shop contributions to the gambling addiction services contribution scheme and to Horse Racing Ireland. Income tax, PRSI and USC contributions would also be lost. While I do not want towns to be filled with bookmakers' shops, they add a vibrancy to many small villages and towns. There is a genuine concern that almost half of the 855 retail betting shops are suggested to be in trouble on the basis of the impact of an increase in tax from 1% to 2%. What I am seeking here is that, within three months of the passing of the Act, the Minister should prepare and lay before both Houses of the Oireachtas a report assessing the economic impact of the increase.

One of the Minister of State's favourite phrases is "unintended consequences" and I certainly do not want a situation to develop where we simply move all betting online while people continue to behave as before. There is an element of regulation in a shop environment which does not exist online and while I might prefer it if they were not all bookmakers, I do not want empty shops in towns either. There is a concern that this proposal will have unintended consequences. As such, a report would be helpful for the Department and the Houses.