This story is sponsored by Paddy PowerOnline bookmakers will soon have to obtain a licence and pay a 1% turnover tax if they wish to continue operating in the Irish market, it has been confirmed.
The plans were first outlined in a Finance Bill last January, but the government this weekend confirmed plans it wants to implement the plans this year to bridge a €56m shortfall in annual funding for the country’s horse racing and greyhound industries.
Funding for the industry from excise duty on off-course betting paid into the Irish horse and greyhound fund has fallen drastically in recent years, as online wagering volumes have increased.
Ireland’s largest bookmaker, Paddy Power, recently reported a 40% year-on-year fall in operating profit from its Irish shops in 2011, compared to 29% growth in its PaddyPower.com online division.
Agriculture minister Simon Coveney has also commissioned a review of the industry and of administering body Horse Racing Ireland by consultancy firm Indecon, reported the Sunday Independent.ie yesterday.
Large online bookmakers in the country, such as Ladbrokes, Boylesports and Paddy Power, are reported to have been consulted by the Irish government over the plans. Paddy Power and other bookmakers have publicly stated their opposition to a turnover tax, but also accept the current funding model is unsustainable should they continue to pay no tax on their online operations to horse racing in Ireland.
