Ireland has announced it will double taxes on gambling next week in an attempt to secure €50m for public spending. A portion of the money will be invested in treating the gambling problem. The expected increment is set at 2% of turnover (currently 1%).
The move comes as the Independent Alliance has successfully negotiated a deal with Finance Minister, Paschal Donohoe.
The Other Side of the Coin
On the other hand, the Irish Bookmakers Association (IBA) opposes the deal, stating it is set to endanger 35% of sportsbooks, which are certain to close down. In terms of (un)employment, it spells 1,500 jobs.
“The 1% tax is maximum possible with regard to the viability of many smaller operators,” IBA representatives have been quoted as saying.
The country’s gambling industry is predicted to face massive losses.
IBA chair, Sharon Byrne puts it this way
“We estimate for a typical independent operator with a modest turnover of €2m per shop, that they are already paying six times more in tax than the profit made per year in that shop. A 1% increase would wipe out any profit made in that shop and cause them to be loss making if their gross margin was to drop below 12%, which is highly probable.”
Given that the business has very low margins, any change in the cost is likely to be “catastrophic,” Byrne adds.
According to estimates, ca. 500 sportsbooks have closed down in the past 10 years and 2,500 jobs have been lost.
Source:
“Ireland Set to Double Gambling Taxes”, igamingbusiness.com, October 3, 2018.
coolsongss
5 years ago
Hero Member
So, the total tax now is around 25m and it will become 50m with 2% tax on turnover, and if 35% small shops close, then 1,500 will disappear, so the total number of employee is (at least) what? Do I understand it correct ? :) I don't know, if they could differentiate the tax rate for the size of turnover...
Please enter your comment.
Your comment is added.
dandan2227
5 years ago
Full Member
Absolute agree taxes really inevitable. Especially when it comes to subjects of gambling, alcohol , tobacco, etc not all the same but pretty much in the same category something that isn't too looked downed upon but also not the best according to the norm. These 3 also are the most profitable. Hence high taxes weed out the...
Absolute agree taxes really inevitable. Especially when it comes to subjects of gambling, alcohol , tobacco, etc not all the same but pretty much in the same category something that isn't too looked downed upon but also not the best according to the norm. These 3 also are the most profitable. Hence high taxes weed out the small who can't afford it and only the big wigs can make it
Show morePlease enter your comment.
Your comment is added.
Mojo Jojo
6 years ago
Super Hero
Taxes are inevitable, the thing about government decision is that we as citizen do not have a vote to claim. If taxes go up, we are obligated to pay. This news is two sided, it will solve gambling problems but at the other hand, we really do not know whether they really spend all the tax money on that particular subject.
Taxes are inevitable, the thing about government decision is that we as citizen do not have a vote to claim. If taxes go up, we are obligated to pay. This news is two sided, it will solve gambling problems but at the other hand, we really do not know whether they really spend all the tax money on that particular subject.
Show morePlease enter your comment.
Your comment is added.
BralasLT
6 years ago
Newbie
Wow! Doubling the amount?? It’s always about taxes…
Please enter your comment.
Your comment is added.