Betting tax increase suggested for Irish horseracing
Ireland’s horse racing governing body, Horse Racing Ireland (HRI), has proposed higher taxes for the betting sector.
The body suggested in a petition submitted to the Department of Finance that the industry should implement a 1.5% increase for sports betting levies.
The proposal demands that the rate of duty should rise from the current 1% of bookies’ annual sales to 2.5%. This extra charge would be passed on to the customers.
This charge had been applied until 2006, when the levy was erased. Operators have already shown their disagreement by rejecting this new legislation.
Brian Kavanagh, President of HRI, said in the petition this new tax regime would benefit the general public. He stated that betting turnover in 2016 was just over €5bn, on which €51m was collected in duty; whilst In 2001, betting turnover was €1.1bn, on which €68m was collected through the tax. “So, while the betting market has increased almost five times between 2001 and 2016, the yield to the exchequer from duty has actually fallen,” Kavanagh concluded.
Additionally, the HRI recommended doubling up the commission on gross profits in betting exchanges, from 15% to a surprising 37.5%.
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