Gambling Sector

Dáil Éireann Debate, Tuesday - 24 July 2018

Tuesday, 24 July 2018

Ceisteanna (388, 389, 390, 391)

Louise O'Reilly

Ceist:

388. Deputy Louise O'Reilly asked the Minister for Finance the tax status of private members' clubs; and if he will make a statement on the matter. [35327/18]

Louise O'Reilly

Ceist:

389. Deputy Louise O'Reilly asked the Minister for Finance the tax status of arcades, gambling terminals in pubs, bookmakers' shops and clubs; his plans to make to their status; and if he will make a statement on the matter. [35328/18]

Louise O'Reilly

Ceist:

390. Deputy Louise O'Reilly asked the Minister for Finance the number of cases taken by the Revenue Commissioners against premises that were suspected of being in violation of a rule (details supplied); the number of inspections carried out nationally to ensure that this is being adhered to; and if he will make a statement on the matter. [35329/18]

Louise O'Reilly

Ceist:

391. Deputy Louise O'Reilly asked the Minister for Finance the number of valid licences for amusement machines nationally; and the number issued to date in 2018. [35330/18]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 388 to 391, inclusive, together.

The legislative framework for the gambling sector and the regulation of gambling generally is recognised by Government as outdated, with the primary legislation in this area dating back to 1956. Overall responsibility for this regulatory reform lies with my colleague, the Minister for Justice and Equality, who established an interdepartmental working group in January 2018 to progress the policy issues relating to a new Gambling Control Bill. The Minister of State at the Department of Justice and Equality chaired the working group which has met on 5 occasions this year. All relevant Government Departments, an Garda Síochána and Revenue have taken part in the working group. The main focus of the group is the role and functions of a new regulatory agency for the gambling sector. I understand that a report for Government is now being prepared by the Minister of State on foot of the group’s discussions and I want to assure the Deputy that the Government is committed to working with all affected stakeholders to create a modern regulatory framework for the gambling sector that is fit for purpose.

Under existing legal provisions relating to gaming and amusement machines, each machine made available for play must have a valid excise licence issued by Revenue. Gaming and Amusement Machine licence duties were introduced to raise revenue and have no regulatory function. Revenue is responsible for issuing licences and for detecting unlicensed or improperly licensed machines. Legislation for duty on gaming machines was included in the Finance Act 1975 and for duty on amusement machines in the Finance Act 1992. All excise licences are subject to payment of the appropriate excise licence fee and confirmation of tax clearance status of the applicant for the licence.

The most recent development in the legal framework for betting was contained in the Betting (Amendment) Act 2015, which extended the scope of Betting Duty to remote bookmaking operators and this has been implemented successfully.

In relation to the specific questions raised by the Deputy, I am advised that casinos may be operated as private member’s clubs and this was acknowledged in the report “Regulating Gaming in Ireland” published by the Department of Justice in 2008. In relation to the tax status of such clubs, I am advised by Revenue that they are subject to the same taxes as any other business, including in relation to the operation of gaming and amusement machines.

I am advised that under section 9 of the Gaming and Lotteries Act 1956, gaming is not permitted in public houses, while Section 19 of the Betting Acts 1931 – 2015 contains a requirement that the proprietor of a bookmaking premises shall not permit any other trade, profession or business to be carried out in such premises except the business of bookmaking. Accordingly, gaming machines are not permitted in public houses or bookmaking shops and it is not possible to obtain a gaming machine licence for gaming machines in these circumstances. Betting terminals are permitted in bookmakers’ premises for placing bets.

In relation to compliance action, I am advised that in 2017, Revenue started a national compliance project on the gaming and amusement sector, which is designed to identify and tackle non-compliance with tax and excise licensing obligations. To date, site visits have been carried out by Revenue officials to 285 separate premises. A range of follow-up actions are being pursued with respect to the tax and licensing issues identified, including seizure of unlicensed gaming machines where necessary. Using a range of compliance interventions this project has achieved a significant increase in tax and licensing compliance as follows:

- Almost 4,000 additional licences were issued in 2017 compared to the previous year, with €899,465 in additional excise licence duty collected; and

- Over 300 interventions have been completed yielding in excess of €1.1million in additional taxes.

This project is ongoing in all regions and I have been assured by Revenue that it is committed to addressing all forms of licensing non-compliance in the sector.

The following table set outs the number of Amusement Permits issued by Revenue this year.

Licence Type	Number issued (from 1 January 2018 to 20 July 2018)	Number issued and still valid (as of 20 July 2018)
Amusement Machine Permits (for premises)	111	99
Amusement Machine Licences (3-month duration)	54	54
Amusement Machine Licences (12-month duration)	5,274	4,645

The following table sets out the number of Gaming Licences (for premises) and Gaming Machine Licences (for each machine) issued by Revenue this year.

Licence Type	Number issued (from 1 January 2018 to 20 July 2018)	Number issued and still valid (as of 20 July 2018)
Gaming Licence (for premises)	60	60
Gaming Machine Licences (3-month duration)	3,273	824
Gaming Machine Licences (12-month duration)	2,380	2,380

I have been advised by Revenue that while the licensing year for amusement machines is from 1 July to 30 June in any given year, there is no fixed licensing period in relation to gaming machines licences.