I announced in Budget 2009 that the betting duty would be increased from 1 to 2%. Subsequently, I met a wide range of representatives from the betting industry where the problems faced by the sector, including those arising from the Budgetary changes, were discussed.
The Finance (No. 2) Act 2008 provides that the betting duty rate will be increased from 1% to 2% on 1 May 2009. The Act also provides that, as happens in the case of other business expenses, betting duty paid by a bookmaker on bets made on or after 1 January 2009 will be allowed as a deduction in computing the amount of profits or losses of the bookmaking business for Income Tax or Corporation Tax purposes.
As I stated during the Finance Bill process, I intend to look at an overhaul of the betting tax regime for next year's Budget and Finance Bill, possibly looking at the UK's gross profits tax model. The estimated yield arising from the 1% increase in the betting duty on 1 May 2009 is around €14m in 2009 and €33m in a full year.