The tax rise is seen as a victory for the Independent Alliance in its Budget negotiations with Finance Minister Paschal Donohoe. It has been suggested some of that money will fund problem gambling treatment.
However, the Irish Bookmakers Association (IBA) has slammed the suggestion of a tax rise, claiming it will put around 35% of the country’s 850 betting shops at risk of closure, and threatens 1,500 jobs. In its Budget submission of July it said the current 1% tax was the “maximum possible with regard to the viability of many smaller operators”.
The current tax rate, which was introduced in 2015, is on top of standard business charges. Irish gambling companies are unable to recover VAT on purchases, while turnover is impacted by the ban on FOBTs in betting shops.
The IBA estimates that there have been around 500 betting shop cloures in the last 10 years with the loss of around 2,500 jobs. It said the market has “stabilised” of late, however “we remain extremely vulnerable to any changes in our cost base as overall staking levels remain under threat”.
Source: GMB / iGaming Business
