Irish online operators to pay tax

Irish online gambling operators including Boylesports and Paddy Power, as well as “intermediaries” such as Betfair could soon pay betting tax following the publication of the country’s Finance Bill this afternoon.

Brian Lenihan, Ireland’s Minister for Finance, today reaffirmed plans ““ that he initially proposed last December ““ to extend the existing 1% tax on betting turnover on bookmakers to online operators in the country. Online operators were previously exempt. The measure is expected to raise around €20m (£17m) in annual additional government revenue.

Betting exchanges such as Betfair are to be made liable to a “betting intermediary duty” at a rate of 15% of the commission they receive from customers in Ireland.

The Department of Finance, part of Lenihan’s Fianna Fail-led coalition government, said the bill would pass through parliament in the coming weeks ahead of a general election on 11 March. The regulatory changes outlined in the Finance Bill are to be provided for through separate legislation amending the Betting Act 1931.

Lenihan has indicated he is considering a licensing system for operators that offer online gambling but are based outside Ireland, however he added no further detail in the bill.