Noel Harrington (Cork South West, Fine Gael)
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Question 11: To ask the Minister for Finance, further to Parliamentary Question No. 50 of 10 November 2010, his views on the possible introduction of an online betting tax; if officials in his Department, in conjunction with the Office of the Attorney General, the Office of the Revenue Commissioners and the Department of Justice and Equality have come to any conclusions in their examination of the legal and operational difficulties that have to be overcome before implementation of such a tax; and if he will make a statement on the matter. [39159/11]

Michael Noonan (Limerick City, Fine Gael)
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The Finance Act 2011 contains legislation that, subject to a Ministerial Commencement Order, provides for the extension of betting duty to remote bookmakers and betting exchanges. The tax changes provided for in the Finance Act can only be implemented once the Betting (Amendment) Bill, which will provide for a regulatory and licensing regime, is enacted. The Betting (Amendment) Bill 2011 is currently at an advanced stage of drafting. The proposed licensing regime will make it a condition of the license for the operator to collect the betting duty with the licensed operators being liable for payment of the duty. It is expected that by including this high-growth area of the betting sector, particularly given the increasing prevalence of smart phones, the tax base from betting will be boosted significantly. In a full year it is expected that the tax yield could grow up to €20 million depending on the prevailing market conditions.

Just as important is the positive signal this measure will convey to international betting operations that have expressed an interest in or have already invested in Ireland. A location with an appropriate licensing framework coupled with relatively low taxes provides real investment and employment opportunities in this sector.