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knowledge 23 May 2017 |

Review of Betting Tax in Ireland by Department of Finance

On Friday 19 May 2017, the Department of Finance published details of its proposed review of the Irish Betting Tax regime which will form part of the Tax Strategy Group process 2017. 

This reviews the roll out of the betting regime to remote bookmakers and betting exchanges in 2015, as well as looking at the likely impact of an increase in the rates of betting duty on:

  1. Exchequer revenues – including potential for unlicensed operators; and
  2. the bookmaking industry including the remote sector.

As part of the review, the Department of Finance has asked operators for views on the current system of betting tax that applies to remote bookmakers and betting exchanges.  In particular, views are requested on the current system, specifically:

  • The inclusion of the remote sector into the betting regime under the Betting (Amendment) Act 2015;
  • Is the existing model of turnover tax, with different approach to betting exchanges, the most appropriate for the industry at this time?
  • What is an appropriate level of betting tax and the equivalent tax on betting exchanges commissions?
  • What would be the impact of a move from taxing the bookmaker to taxing the punter ie either a percentage tax on all bets placed but paid by the punter rather than the bookmaker, or a (higher) percentage on winnings paid by the punter?

The due date for responding to the review is 19 June and the Department of Finance has indicated that they are happy to meet operators if needed.  
It should be noted that if you are proposing to respond to the submission, you should be aware of your obligations and requirements under Freedom of Legislation.

Full details of the review, including contacts and closing date, are published on the Department of Finance website here.

If you have any questions, please do not hesitate to contact Alan Heuston (Partner, Tax, Head of Betting & Gaming Group) or Sean Dowling (Associate, Corporate) to discuss.

This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.