The tax change, in which remote (online) operators are required to pay 1% of their total revenue derived from Irish-facing online gambling sites, will go into effect later this year. The change has been debated sine 2011 in various forms, and was finally codified with the introduction and eventual passage of Ireland’s Betting (Amendment) Bill. Poker, casino gambling and sports betting are all considered to be tax-free, and have been for the last decade. That’s not to say there is no tax levied on these industries, but in the UK it is the operators who have to pay 25% tax on their income. Ireland's stalled plan to tax online gambling has been sent to the president to be signed into law, finance minister Michael Noonan said on Thursday, clearing the way to begin imposing the levy on. Online casino Ireland. That’s why Ireland is referred to as a tax haven. After impressive growth numbers, 7 percent between 2001 and 2004, and 10 percent.
Published October 15, 2014 by Mike PIreland is set to introduce new legislation that will raise €25 million in gambling taxation from foreign operators.
Irish minister for finance Michael Noonan has been striving to implement an online betting tax since taking up his post over three years ago. Prior to the arrival of Noonan, Dermot Ahern previously held the post. Ahern had also been trying to introduce an online gambling tax, but since 2009. Government estimates suggest that such a tax would generate approximately €25 million a year.
€1.6b Revenue for Operators
At the core of the proposed legislation is a desire to tax foreign gambling operators who are targeting Irish residents without being registered in the country. The remote gambling services provided in Ireland are said to generate revenue of approximately €1.6 billion annually. Again, the proposed tax would be €25 million of that figure. From the annual tax revenue, it is proposed that up to €11 million will be contributed to capital as well as horse racing and greyhound racing.
Changes to 1931 Legislation
The Betting (Amendment) Bill 2013 is at last set to be implemented, providing a long awaited update to legislation that had dated back to 1931 in some aspects. Noonan had been so eager to introduce change that he made the alteration of the existing legislation his first act as minister of finance.
Rural Benefits
An important factor in promoting the change to Irish politicians has been Noonan’s promise of funding for the bloodstock industry to boost the rural economy. But Horse Racing Ireland is a more specific beneficiary, with the organisation set to receive €5 million in funding to invest in race courses.
Paddy Power Welcomes Tax
From the gambling operators present in Ireland, Paddy Power has openly welcomed the change in legislation. In fact, Paddy Power stated that the company had collaborated with the government. Paddy Power is eager for all Irish-based operators to be competing in a fair market with foreign operators.
See also
Industry Future Revenue Billions Annually
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The moves come as it was revealed there has been a 30% rise in gamblers seeking help.
Ireland Online Gambling Taxes
But an overhaul of gambling laws would spell the end for the planned €460 million super-casino in Tipperary, with the development of Las Vegas-style resorts being ruled out.
However, the developers vowed to press ahead with their plans.
Ireland Online Gambling Tax Rates
Businessman Richard Quirke, the main backer of the venue, said he would examine plans without a casino or with a smaller one.
Proposals to modernise the gambling industry include:
* Allowing a limited number of moderate-sized casinos.
* Checking and assessing the history and finances of gambling promoters.
* Banning large gambling resorts over fears of attracting “undesirable” elements.
* Prohibiting fixed-odds betting terminals.
* Closing loopholes for online gambling, including setting taxes.
* Charging a levy for help and education services.
Departments are also examining changes to taxes that could yield up to €100m annually from online gambling and betting shops. But laws are unlikely to be drafted until next year.
Dublin’s Rutland Centre warned it had seen a 30% rise in people presenting for help with gambling.