Dáil Éireann Debate, Wednesday - 24 June 2015
90. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be raised for the Exchequer by enacting the taxation provisions of the betting Bill but applying 3% to online bets and a 15% tax on gross profit for remote betting intermediaries, as well as extending an additional 2% to the betting shop tax, bringing it to 3%, and ensuring this tax is passed on to the customer, as opposed to being paid by the bookmaker. [25261/15]
View answer116. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be raised for the Exchequer by applying 3% to online bets and a 15% tax on gross profit for remote betting intermediaries; as well as extending an additional 2% to the betting shop tax, bringing it to 3%, and ensuring this tax is passed on to the customer, as opposed to being paid by the bookmaker, and payable on winnings. [25291/15]
View answerI propose to take Questions Nos. 90 and 116 together.
Following commencement of the licensing provisions for remote operators, provided for in the Betting (Amendment) Act 2015, provisions for the extension of duty to remote bookmakers and remote betting intermediaries were commenced on 15 April. These operators are liable for duty at 1% on the amount of a bet from customers in the State and betting intermediary duty of 15% on the commission charged to customers in the State.
It is not possible to be certain about the additional revenue which will be raised for the Exchequer from the remote sector, however, using available data, it has been estimated that the extension of the betting duty, at a rate of 1%, to remote operations could raise up to €25m in a full year.
In 2014, betting duty receipts from traditional bookmakers amounted to €26.2m.
The Betting (Amendment) Act 2015 was only commenced in April and the application of duty to remote operators will not come into effect until 1 August 2015. I am therefore reluctant to estimate prospective yields from the rates proposed by the Deputy until I have had the opportunity to examine a substantial set of Exchequer returns arising from the new legislation.
