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Dublin: 8 °C Friday 24 May, 2013

Noonan hopes for significant boost from new betting taxes

New rules will see online bets subject to the same tax as high street betting.

New rules will see online bets subject to the same tax as high street betting.
New rules will see online bets subject to the same tax as high street betting.
Image: James Horan/Photocall Ireland

FINANCE MINISTER MICHAEL Noonan has said that he hopes a new Bill which is in a “well advanced” stage will significantly boost the tax base available from the ever-growing betting sector.

Announced in Budget 2011, the new legislation will increase betting duty receipts by bringing the tax collected on internet bets in line with what is currently paid by punters in-store.

Responding to a parliamentary question last week, Noonan said he wants to publish the Betting (Amendment) Bill before the Dáil breaks for summer holidays later this month.

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

The new rules will see that bets placed on the internet by domestic punters are subject to the same level of betting duty (1 per cent) as applies to high street betting shops. Excise duties will also be applied to the granting and renewal of licences for remote bookmakers.

Last year, €27 million of revenue was raised from betting duty. Previously, Noonan has said the new legislation will make Ireland an attractive location for international betting operations because of an “appropriate licensing regime” coupled with “relatively low taxes” which could lead to real investment and employment opportunities.

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Comments (38 Comments)

  • €27 million raised in revenue @ 1%? Some serious amount of betting going on in this country.

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    • That was just the shop bets. Online usage has exploded over the past year, there’s a lot more to be brought in.

      Reply
    • I’m open to correction but I think horse racing and dog racing will receive €56.29m in direct funding between them (see link), so the €27m raised doesn’t even cover this – which is disgraceful, IMO.

      If I recall correctly, the tax used to be 10% but it was slashed due to ‘competition from the Internet’. If we can successfully tax Irish Internet gambling, then hopefully the tax can go back up.

      http://www.agriculture.gov.ie/press/ministersspeeches/speechesbyministercoveney/2011/14december2011openingaddressbysimoncoveneytdministerforagriculturefoodandthemarinedrafthorseandgreyhoundracingfundregulations2011/

      Reply
    • Wow! And I thought we were all piss-poor and children were going hungry to bed and the grannies were freezing in the garret, or on a hospital trolley, and that the badly-off could go abroad only twice a year nowadays! And that the town drunks were all born-again tay-drinkers!

      Seems, as always, there is plenty of money to be frittered – but not to be wasted on food, clothes, heating, electricity, gas, and paying water-charges or such foolish spending! The usual topers are still in the pubs, pissing their dole. Maybe their children are hungry; and half-naked; doesn’t bother them though!

      Long live the online Bookies; they are the best replacement we could ever have gotten for the absentee landlords of long ago! Sure now we send them hard cash instead of beef and wheat by the shipload.

      Good man, Mickie Noonan, stick it to McCreevy’s pals!!

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    • Betting is enormous here. About time it was properly taxed

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    • Rob 10/07/12 #

      The top 1% now earn almost 35% of the TOTAL INCOME in this country. They can afford to lose a tax break. The middle class cannot.

      Noonan and the blueshirts want to cut the taxes of these 1-percenters to zero while he lays a huge national property tax on the middle class.

      ————-
      FG’ers have decimated the middle class. Send them home in 2012.

      Reply
    • Fagan's 10/07/12 #

      peepingass. It is a massive recession we are experiencing here, what you seem to think was happening was that every single person had lost there job. Even in the Great Depression there was economic growth, many millionaires created.

      Have no doubt that most of the people who are gambling online are in the 20′s, working, no mortgage, no family. That is the stats for most online gambling demographics.

      The “no recession here” line doesn’t reflect reality.

      Reply
  • Betting should have 10% tax like it was in the 80 thing it was even more ,, tax free haven for owners and trainers not right

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  • About time bookies over here absorb the tax at the moment, but it’s a miniscule amount for what they take in, Gambling from working in a bookies is one of the worst addictions i’ve seen, people in at 9.30 in the morning till 9.30 at night,

    The bookmakers having and pushing for people to sign up for loyalty awards with them so they can “Reward” customers,

    It’s a blight.

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  • about time it s a luxury that people waste their money on horribly addictive especially online as people are not handling cash they can spend 100′s before they realize it. causing huge problems in the uk online gambling needs more regulation over here before we get in to the same situation as the uk

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  • Gambling is a mugs’ game.

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  • Noonan needs to fire everyone in the department of finance who does not have the basic qualifications for the job and clear out the dead wood first.

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  • If you bet with a foreign bookie, how will they go about collecting the tax?

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    • I don’t gamble so don’t know much about it but you’re right, didn’t most of these online sites move here from the US some years ago after being banned there, one of the Bush presidents did it I think. Some are based in Ireland, the Isle of Man, Jersey etc places like that. If pressured they’ll just up and move to a “friendlier country”, or at least their server will.

      Reply
  • So he wants EU companies to treat Irish people differently to everyone else? Isn’t that against every EU competition and export law ever written?nnHow many millions are going to be wasted when this is successfully challenged in the EU courts?nnMuppetry.

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    • 6-1 on, that the EU recognises that Ireland is breaking the rules. I’ll put a case of Pedigree Chum on that, plus tax of course. Woof. Course, I’ll get not only my winnings, but my tax back as well. Win Win.

      Reply
    • Ireland still has fiscal sovereignty so no, there won’t be any challenge from the EU. It’s the same reason some states may huff and puff about our corporation tax rate but there’s nothing they can do about it.

      Reply
    • Tax all gambling at 10%, minimum. They have been raping and pillaging our vulnerable for years.

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    • @Ignoreland – yes Ireland has fiscal sovereignty. But it is not allowed to discriminate between EU citizens when applying those taxes.

      Reply
    • Rob 09/07/12 #

      He needs to raise taxes on the rich. He isn’t looking out for the bottom 97% of Irish people. FG promised jobs and more jobs if only they got the FF tax cuts, 1.5 years later and we all know they lied, but keep the millions in greed.

      Reply
  • I think we should play by our own rules anyway. Even though i am against this tax i hate the fact we are handicapped by competition rules that hinders the progress of smaller countries

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  • Should be applied to the real gamblers in the banks but i forget, they’ll all fcuk off to Abu Dhaibi.

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  • Rob 09/07/12 #

    Luke 16:19-25 “There was a rich man who was dressed in purple and fine linen and who feasted sumptuously every day. And at his gate lay a poor man named Lazarus, covered with sores, who longed to satisfy his hunger with what fell from the rich man’s table; even the dogs would come and lick his sores. The poor man died and was carried away by the angels to be with Abraham. The rich man also died and was buried.

    In Hades, where he was being tormented, he looked up and saw Abraham far away with Lazarus by his side. He called out, ‘Father Abraham, have mercy on me, and send Lazarus to dip the tip of his finger in water and cool my tongue; for I am in agony in these flames.’ But Abraham said, ‘Child, remember that during your lifetime you received your good things, and Lazarus in like manner evil things; but now he is comforted here, and you are in agony.

    Reply
  • Rob 09/07/12 #

    I wonder if folks expect the FF tax cuts to be permanent. Not gonna happen whoever is future taoiseach. The citizens of Ireland don’t want another period of these cuts for the uber wealthy. Entitlements also need revamping. it’s called reasonability/compromise/balance/etc.. i know many have forgotten what the heck that is. esp. FG politicians.

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  • He ” hopes ” .

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  • Bookmakers are the only one’s employing people, which leading to those people paying taxes and taking them off the dole too. There are a lot of negatives to this bill too, what about foreign bookies as well, if they’re not going to be affected this will cost Irish bookies customers, who will look elsewhere.

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  • lotto and euro millions should be taxed also. all wins over 500 grand should at least a 10% tax rate. if I won that amount or more I’d gladly give them 10%

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  • this tax will be passed on to the punter from the bookmaker as a percentage of a winning bet just like betfair commissions,
    gamblers will have to start hiding their ip address’s soon,

    but before that happens the bookmaking giants will crush his idea with a big, fat, succulent, cheque, where he can fill in his own number.

    Reply

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