Pearse Doherty (Donegal South West, Sinn Fein)
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204. To ask the Minister for Finance to set out the partial and full year revenue that would be raised for the Exchequer by enacting the taxation provisions of the Betting (Amendment) Bill, but applying 3% to online bets and 15% on gross profit tax for remote betting intermediaries as well as extending an additional 2% to the betting shop tax, bringing it to 3%, and ensuring that this tax is paid by the customer as opposed to the bookmaker. [31220/14]

Pearse Doherty (Donegal South West, Sinn Fein)
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205. To ask the Minister for Finance to set out the partial and full year revenue that would be raised for the Exchequer by enacting the taxation provisions of the Betting (Amendment) Bill, but applying 3% to online bets and 15% on gross profit tax for remote betting intermediaries; as well as extending an additional 2% to the betting shop tax, bringing it to 3%, and ensuring that this tax is paid by the customer as opposed to the bookmaker and, further, that the tax is applied to the bet as opposed to the winnings. [31221/14]

Pearse Doherty (Donegal South West, Sinn Fein)
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206. To ask the Minister for Finance to set out the partial and full year revenue that would be raised for the Exchequer by enacting the taxation provisions of the Betting (Amendment) Bill, but applying 3% to online bets and 15% on gross profit tax for remote betting intermediaries as well as extending an additional 2% to the betting shop tax, bringing it to 3%, and ensuring that this tax is paid by the customer as opposed to the bookmaker and, further, that the tax is applied to the winnings as opposed to the bet. [31222/14]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 204, to 206, inclusive, together.

The Finance Act 2002 provides for betting duty at a rate of 1% on the amount of a bet placed by a person with a bookmaker at the bookmaker's registered premises. Following commencement of the licensing provisions for remote operators, provided for in the Betting (Amendment) Bill 2013, provisions for the extension of duty to remote bookmakers and remote betting intermediaries will also be commenced. These operators will then be liable for duty at 1% on the amount of a bet from customers in the State and betting intermediary duty of 15% on the commission charged to customers in the State.

In 2013, betting duty receipts from traditional bookmakers amounted to €25.4m. The figure for the 6-month period to the end June 2014 is approximately €12m.  An increase in the rate of duty from 1% to 3%, with no other changes to the structure or nature of the duty, might yield an additional €50m approximately per annum. In reality, however, it is very unlikely that a rate increase would raise a proportionate amount of revenue, especially if the duty is charged to the customer. It would be expected that some customers would reduce their gambling expenditure and others might divert their expenditure to other gambling products or to unlicensed operators.

It is not possible to estimate the effect on yield of changing the basis of betting duty from the amount of each bet to the amount paid out on winning bets. However, as the value of bets received must exceed the value of winnings, the change would result in a reduction in the overall amount of betting duty collected, if rates are held constant.  Likewise, changing the basis of taxation of betting intermediaries from commission to gross profits would results in a lower tax base and reduced revenues at any given rate of duty.