A move by the Irish government to tax online gaming will be delayed until 2015, according to a recent statement made by Ireland’s finance minister.
The delay comes at a time when London bookmakers are facing their own set of new taxes and enhanced regulatory oversight.
London officials are closing a loophole that allows bookmakers to pay lower tax rates by offshoring operations to neighbouring countries with more generous tax policies. New taxes on high-stakes betting machines are also imminent.
It has been more than three years since the Irish government announced plans to begin taxing online gaming. The proposed system would extend the 1 percent tax now levied against players who bet in shops to players who bet online. In essence, every bet made by an Irish bettor at home would be subject to an additional 1 percent tax.
Ireland has been eager to move forward with the new tax, saying it will generate much-needed revenue. Concerns from neighbouring countries and other issues have slowed the parliamentary process to a veritable crawl, however.
For some gaming operators, the bill is a mixed bag. Major bookmakers such as Paddy Power Casino have noted that the tax will cost them million of euros each year. It would also, however, level the playing field for companies that operate domestically but must compete internationally.
The Irish government has said it projects the new tax will raise about $25 million annually. Roughly $1.5 billion is wagered online by Irish bettors every year, with the vast majority of the profits going to overseas corporations. Proponents of the online tax believe it will help route some of that money back to Ireland.
The tax is part of a larger bill that will overhaul the gaming industry in Ireland. The bill will create a regulatory system for betting services and establish provisions for equal treatment of all bookmakers, regardless of where they operate.
