Brendan Griffin (Kerry, Fine Gael)
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108. To ask the Minister for Finance his views on a matter (details supplied) in relation to the betting tax; and if he will make a statement on the matter. [14755/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The increase in the betting duty rate from 1 per cent to 2 per cent, and the betting intermediary duty rate from 15% to 25%, came into effect on 1 January 2019. The last time that the betting duty rate was increased was 1975 and at 1% betting duty was at an all time low.

Receipts from betting duty represented less than 1 per cent of all excise receipts in 2017 and this was also the case in 2018. In addition, unlike other excisable goods, there is no VAT applied on betting transactions. I believe the betting sector needs to make a fair contribution to the Exchequer.

In any discussion on betting duty, we must acknowledge the raised public consciousness of the problem of gambling in society. While problem gambling can result in the problem gambler, and their family, bearing the severest of economic and of course personal costs, the social costs of problem gambling can extend to their employers and to public institutions in the health, welfare and justice systems, such latter costs ultimately being borne by taxpayers. I have outlined my view that this needs to be better reflected within the betting duty regime.

In the course of last year's Finance Bill process, I acknowledged that small independent bookmakers may have difficulty competing with larger bookmakers with retail and/or online operations. At the time I agreed to review an alternative proposal put forward by the betting sector. My officials are currently considering this proposal, including the compatibility of a core element with EU rules, and will set out analysis and options in relation to betting duty at the Tax Strategy Group (TSG) meeting in July. The TSG Papers will be published on the Department's website shortly afterwards. 

Ultimately many taxes on goods or services are passed through to the end consumers and bookmakers will need to make commercial decisions on such matters in their pricing decisions.