According to sources, the Irish Government has decided to double the gambling tax as part of the 2019 budget which is set to be unveiled by Finance Minister Paschal Donohoe on October 9th.
Under the measure, which is to see the current 1% tax rate increased to 2%, an estimate of €50 million is expected to be raised on an annual basis. As planned, part of that money is to be redirected to fund some specialised services aimed at helping problem gamblers. As mentioned above, the country’s Finance Minister is expected to include the proposed measure in his €3.4-billion giveaway budget that is to become public next week. If so, the gambling tax increase will be a major victory for the Independent Alliance.
As Casino Guardian reported earlier, the local political group Independent Alliance has called for the Irish Government to boost the current gambling tax to 2%. As part of the budget talks in September, the four politicians who form the Alliance called for other reforms as well, such as introducing a property tax waiver for older people living on fixed incomes.
Fantastic to see support from Oisín McConville to use betting tax increase to fund addiction and education services. https://t.co/VIF5KA6wwA
— John Halligan (@JohnHalligan) September 19, 2018
Last month, Shane Ross, John Halligan, Finian McGrath and Kevin Boxer Moran insisted that doubling the current gambling tax from 1% to 2% is set to bring €50 million. Now, the decision for the gambling tax rate increase seems like the only major win for the Alliance as a result of their talks with the Finance Minister.
Ireland’s Gambling Tax Increase Is to Face Opposition, Too
It is true that gambling taxes are currently only a small portion of the €3.4-billion budget. Still, the increase will add some money to the Government’s coffers, with some of the funds set to be redirected for programs aimed at helping problem gamblers across the country. A certain portion of the money will probably be used for funding of the local racing industry.
Despite the fact that there will be further debates on the Government’s budget by local legislators, the votes of the four members of the Independent Alliance will be key to ensure the further survival of the proposition.
The increase of the gambling tax is likely to see some opposition. In September, the Irish Bookmakers Association (IBA) warned that independent bookmakers that offer their services across the country would suffer a major blow in case that the gambling tax is increased. According to the IBA, the change could lead to further betting shop closures and respectively, job losses. Still, the new tax rate is smaller than the 2.5% rate which Horse Racing Ireland has been insisting for in 2017.
It remains unknown whether the taxation of betting exchanges, which currently pay 15% on the commissions generated from local punters, is planned to remain unchanged or the Government is considering to increase its tax levy, too. The currently existing online betting tax was introduced by the country’s Government in 2015, as part of a broader reform of the Irish gambling sector.
- Author
Daniel Williams
