The Irish government is set to benefit from a 25m boost to the budget, following the agreement that a new online betting tax will be introduced into the country’s economy. The new tax has been spoken about at length since 2011, when Michael Noonan first became the Minister of Finance. Having promised to be far more stringent on the online gaming community when first appointed, it looked like these new rulings will finally be coming to the Republic soon.
It’s estimated that Ireland spends roughly €1.6bn on gambling every single year, but a huge amount of that money leaves Ireland due to the fact that many companies that Irish players use are based in Gibraltar. Gibraltar has much lower tax rates, especially when compared to Ireland. This lets a lot of that money slip out of the Irish economy.
Targeted at the companies rather than the players, the idea is that will cause a significant change t to the way that Ireland is targeted by foreign bookies. Now, companies will need to apply for a license to advertise in Ireland, and will have to pay tax to the Irish government based on this. Because of the huge amount of gamers within Ireland, this is likely to be met with little resistance by big gaming companies.
This could bring in up to €11m in investment for ailing parts of Irish sporting economies like the horse and greyhound racing tracks which have fallen into disrepair all across Ireland.
As the Irish government looks to create a situation that allows for bookies based domestically facing equal challenges to other bookies that were cutting in on the tax threshold required, there looks to be a far more level playing field for bookies that want to benefit from the thriving Irish gambling and online gaming scene.