Further Delay for Irish Online Gambling Tax
Ireland’s plan to tax online gambling is facing yet another delay, pushing the implementation into 2015, according to the country’s finance minister. This gives bookmakers like Paddy Power more time before the tax is enforced.
The idea to tax online casino bets in Ireland was first introduced in 2011, aiming to extend the existing one percent tax on in-shop bets to those placed online or over the phone by Irish customers. However, the legislation has been repeatedly postponed. Currently, a standstill period has been extended into January due to Malta’s concerns over licensing laws for operators already licensed in other jurisdictions.
Finance Minister Michael Noonan stated, “Once the standstill period is over, I plan to move the Bill through the Oireachtas (parliament) as quickly as possible.” He expressed frustration over the delays in response to an opposition spokesman, saying, “I share the Deputy’s frustration at the delays involved in progressing the Bill.”
Typically, a bill takes several weeks or months to pass through Ireland’s parliament before becoming law.
Paddy Power, which earns over three-quarters of its profits online, estimated the tax would have cost them €7 million last year. In 2013, their profit before tax was €141 million, and they had informed investors in August that they expected the tax to be introduced by the end of this year.
The new tax in Ireland coincides with increased regulation and additional taxes faced by major bookmakers like Paddy Power, Ladbrokes, and William Hill in Britain. London is closing a loophole this month that allowed bookmakers to reduce tax bills on online earnings by basing operations offshore, in places like Gibraltar. Additionally, taxes on high-stakes gambling machines will increase from March next year.
