On-course bookmakers are exempt from betting duty on bets accepted during and at a race meeting under section 68(1)(a) of the Finance Act 2002. However, this exemption does not apply to bets entered into by any means of telecommunications, such as by telephone or online.
The current exemption from betting duty applies to very narrowly defined category of bookmakers and bets and I am advised by Revenue that issues of interpretation and definition would arise if the exemption were to be extended to a broader category of "smaller bookmakers". A broader exemption could also give rise to State Aid issues if it did not also apply to remote bookmakers and remote betting intermediaries.
I have previously given a commitment during the passage of the Finance Act 2016 to review the operation of the betting tax regime as part of the 2017 Tax Strategy Group process. This remains my intention.