Written answers

Tuesday, 6 November 2018

Photo of Frank O'RourkeFrank O'Rourke (Kildare North, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

196. To ask the Minister for Finance if he will reconsider the proposed 100% increase in turnover tax for the bookmaker and or betting industry; if detailed research has been conducted into the impact of such a tax on the viability of the bookmaking industry and the employees that would lose their jobs; if he will consider setting the turnover tax at a lower more equitable rate; and if he will make a statement on the matter. [45264/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As announced in the Budget I have increased the rate of betting duty from 1 per cent to 2 per cent on the turnover of bookmakers and the rate of betting intermediary duty from 15 per cent to 25 per cent on the commission earned by betting intermediaries. These measures will take effect from 1 January 2019 and will help fund public services.

The Government’s priority in recent years has been to level the playing field by extending the betting tax to remote bookmakers and betting exchanges. This was achieved in 2015, via the Betting Amendment Act, and I believe it is now timely to increase the rates of betting duty and betting intermediary duty.

It is acknowledged that traditional retail bookmakers face ongoing challenges from the on-line sector. It is a fact that advances in technology have challenged existing business models and have changed the structure of many markets, including the betting market.

However, it is important to note that receipts from traditional bookmakers have remained stable and displayed some year-on-year growth in recent years. Yields from traditional bookmakers have increased from €25.4m in 2013 to €29m in 2017, implying an increase in turnover of about 14% during this period, from €2.54 billion to €2.9 billion. This demonstrates the resilience of traditional bookmakers in the face of ongoing challenges.

I appreciate the concerns raised by the betting sector following the budget. However, this increase must be seen in the context of the rate being at an all-time low. In the past the tax was 20% of turnover and the last time the rate increased was in 1975. It is also worth pointing out that VAT does not apply to betting services, also there are on-course exemptions from betting duty, that the bookmakers licence fees are low and have not increased since 1992, and last but not least, the fact that there is a raised public consciousness on the social costs of problem gambling.

Accordingly, I do not propose to change the increase provided for in Budget 2019.

Comments

No comments

Log in or join to post a public comment.