Michael Healy-Rae (Kerry South, Independent)
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Question 144: To ask the Minister for Finance his views on a matter (details supplied) regarding the proposed betting amendment Bill; and if he will make a statement on the matter. [13703/12]

Michael Noonan (Limerick City, Fine Gael)
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It was announced in Budget 2011 that the necessary arrangements are being made to ensure that bets placed on the internet by domestic punters are subject to the same level of betting duty as applies to high street betting shops. This will serve to broaden the tax base and increase betting duty receipts. The Finance Act 2011 provides for the taxation of bets that remote bookmakers enter into with persons in the State. This means, for example, that a business which engages in online bookmaking and which accepts bets from people in this country will be liable for betting duty on those bets, irrespective of where that business is based. The existing betting duty (1%) will be applied to such bets. The Finance Act also provides for the taxation of Betting Exchanges under the new arrangements; however the calculation of the tax will take account of their particular business model, in other words a tax on the commission charged. In addition, excise duties are being applied to the granting and renewal of remote bookmakers' and remote betting intermediaries' licences.

The proposed Betting (Amendment) Bill, which is being drafted at present, will establish the regulatory framework for these licences. The tax changes provided for in the Finance Act can only be implemented once the Betting (Amendment) Bill is enacted. This Bill is well advanced and it is hoped that it will be published in the second quarter of this year..

I am hopeful that by including the high-growth area of the betting sector the tax base from betting will be boosted significantly.

In addition, this measure conveys a positive signal to international betting operations that have expressed an interest in or have already invested in Ireland. A location with an appropriate licensing regime coupled with relatively low taxes provides real investment and employment opportunities in this sector, which ultimately can potentially be beneficial to all concerned.