Maureen O'Sullivan (Dublin Central, Independent)
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311. To ask the Minister for Finance the estimated return to the Exchequer from introducing a tax on online gambling of 5%, in view of the changes brought into force by the Betting (Amendment) Act 2015. [20738/15]

Maureen O'Sullivan (Dublin Central, Independent)
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312. To ask the Minister for Finance the estimated return to the Exchequer from introducing a tax on online gambling of 15% in view of the changes from the Betting (Amendment) Act 2015. [20739/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 311 and 312 together.

Following commencement of the licensing provisions for remote operators, provided for in the Betting (Amendment) Act 2015, provisions for the extension of duty to remote bookmakers and remote betting intermediaries were commenced on 15 April. These operators are 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 2014, betting duty receipts from traditional bookmakers amounted to €26.2m. 

It is not possible to be certain about the additional revenue which will be raised for the Exchequer, however, using available data, it has been estimated that the extension of the betting duty, at a rate of 1%, to remote operations could raise up to €25m in a full year.

It is unlikely that an increase in rates, as proposed by the Deputy, would raise a proportionate amount of revenue. In reality 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.

The Betting (Amendment) Act 2015 was only commenced last month and the application of duty to remote operators will not come into effect until 1 August 2015.  I am therefore reluctant to estimate prospective yields from the rates proposed by the Deputy until I have had the opportunity to examine a substantial set of Exchequer returns arising from the new legislation.