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Anaglogs Daughter
21 Sep 11 18:17
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Date Joined: 05 Jan 10
| Topic/replies: 29,477 | Blogger: Anaglogs Daughter's blog
Ireland will publish new gambling laws early next year to bring online operators into the tax net and cap the size and number of casinos, the Minister for Justice said.

Gambling on horse-racing and sporting fixtures is hugely popular in Ireland, and punters are increasingly using the Internet to place their bets. But current gambling laws date from 1931 and 1956.

"The shortcomings in the current law, for example, the absence of any regulation of on-line gambling, are exposing young people and other vulnerable persons to unacceptable risks," Justice Minister Alan Shatter said in a statement.

"The exchequer is also being short-changed because of the absence of a taxation regime for on-line and other forms of remote gambling."

The new law, which will be presented to government next spring, will provide for the licensing of online operators, ensuring they are brought into the tax code.

Currently, Irish bookmaker Paddy Power pays tax on its online operations in the Isle of Man, where its servers are based.

A spokesman for the company, which made almost as much profit through its website and mobile phone applications in the first half of this year as it did overall in the first half of 2010, said it was happy to pay additional taxes as long as they were applied fairly.

"It's the policing of the legislation that is the most important thing. Irish and international players need to be taxed equally," he said.

The law will give the minister for justice full supervisory, inspection and enforcement powers over betting shops and gaming arcades, replacing the current system, which splits the licensing and supervision between the minister for justice and the minister for finance.

The legislation will permit moderately sized casinos but not large, resort-style operations.

"The government feels it would not be acting in the public interest if through the forthcoming legislation it encouraged or facilitated the larger developments in the face of such real and substantial doubts about their viability."

The legislation may give the government the power to impose a levy to support treatment facilities for problem gamblers but such a provision would only be activated if funds established by the operators themselves for such facilities were inadequate.
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Report zipifried September 21, 2011 6:22 PM BST
Some cheek considering how much money the government gambled away
Report Vubiant September 21, 2011 6:25 PM BST
Would the government you refer to be that led by Fianna Fail ( the Republican Party ) by any chance ?
Report zipifried September 21, 2011 6:28 PM BST
A free state Republican party Laugh
Report MJK September 21, 2011 6:34 PM BST
Totally forgot to add to my post the other day re 'Tax'. What will happen is that instead of it just being tax on online gambling it will be a 2.5% tax across the board including street bookies.
Report reb September 21, 2011 7:03 PM BST
Given the mild betting tax environment we've gone through in the last 10+ years, it's hard to believe that betting tax was once 20%  and subsequently, 10% (paid on all stakes) in Ireland. Not easy to beat both the bookie and the taxman back then. Didn't stop me from trying though. Looking back, a waste of time rather than money.
Report Anaglogs Daughter September 21, 2011 7:09 PM BST
Didn't they try all this before, 3% and the bookies took the knock. I guess it say could be 5% on-line and in shops and that will be that...That will see the resurgents in independent bookmakers if the bookies want the punters to pay the bees wax Happy
Report thefly10 September 21, 2011 7:19 PM BST
We need this man back in the hotseat- [url=http://www.youtube.com/watch?v=nE5o79AOXAw]link[/url]
Report Rocketfingers September 21, 2011 7:35 PM BST
I can't see it going to 5% straight away, i think it will go to something bookmakers can swallow.
Report squigs September 21, 2011 7:42 PM BST
In fairness they are right to push to bring in Online operators into the tax bracket. This area is going to see a massive increase in revenue. The current number of circa 1200 betting shops in Ireland is simply unsustainable going forward.
Report galwaygunner September 21, 2011 7:47 PM BST
cant see how this is going to be enforced. how can betfair be taxed on bets placed in Ireland while there based in gibralter.
Report squigs September 21, 2011 7:52 PM BST
They could block betfair to Irish users if they wanted to.
Report Rocketfingers September 21, 2011 7:55 PM BST
It's going to be very difficult alright, but can they block the websites?
Report mincer11 September 21, 2011 7:58 PM BST
If they could block wonky and wildman from posting then that would be a big help
Report squigs September 21, 2011 8:06 PM BST
Betfair has been blocked in a number of European countries such as France. Precedent has been set so there is nothing holding them back. It would be a controversial measure and Betfair have investments and jobs within Ireland so I would seriously doubt it. I would say Betfair would arrange some sort of tax equivalent possibly paid by users before it ever got to the stage of threatening to block access.
Report Rocketfingers September 21, 2011 8:10 PM BST
Squigs do BF make any contribution to racing in Ireland? I thought they came to some agreement not too long ago ?!
Report Anaglogs Daughter September 21, 2011 8:35 PM BST
30 Aug 2006


Betfair agrees €4.5m deal with Horse Racing Ireland

Betting exchange Betfair has agreed a payment structure with Horse Racing Ireland that will see the exchange pay ten per cent of their gross profit on Irish racing.

The voluntary contract will see the exchange make at least €1 million in annual payments to Horse Racing Ireland, on a similar basis to the Levy payments Betfair makes in the UK.

Betfair will also make a payment of an undisclosed amount for the period from 2003 to the present. Betfair has also reached a memorandum of understanding with the Irish Turf Club that will allow the regulatory body to have access to Betfair data for integrity concerns regarding betting activity
Report Anaglogs Daughter September 21, 2011 8:40 PM BST
2009


More details have emerged regarding the voluntary funding dispute between the international online betting exchange Betfair and Horse Racing Ireland.
 
It appears that Betfair's offer of a further voluntary investment of Euro 4.5 million over the next three years has been rejected by HRI, which wants the gambling group to double its contribution. Betfair has declined

to do so, indicating that it will leave the door open for further talks going into 2010. 

Betfair's offer of payment comes despite the Irish operation representing less than 5 percent of its total revenue.
 
Over the past three years, Betfair has made a total of Euro 4.9 million in contributions to the HRI in a "cooperation agreement" for the good of the sport, and the rejection by the HRI management at a time when it is suffering state funding cuts and has had to scale back on prizes has surprised some observers.

One unidentified senior government figure is quoted by the Irish newspaper Independent as saying: "How in the hell can they turn down a single cent at a time when budgets all over the place are being squeezed. Someone needs to take a very quick reality check."
 
However, Brian Kavanagh, CEO of the HRI remains adamant that he will accept only an amount double that offered from Betfair, and that should negotiations recommence in 2010 it will have to be on the basis that any deal done in 2010 would have to be done on a "pre-condition that it would be backdated to the start of 2009".
Report squigs September 21, 2011 8:46 PM BST
Yeah, there was argument over their voluntary levy, I'm sure in 2010 that Punchestown were not allowed accept a large sponsorship figure off them for the festival.

Obviously in the governments eyes there is a difference between levy supporting an industry (Horse Racing) and tax.
Report squigs September 21, 2011 8:46 PM BST
Cheers read Analogs articles just now.
Report Anaglogs Daughter September 21, 2011 8:47 PM BST
2010 Happy

BETFAIR have hit back at Horse Racing Ireland after comments made by the governing body's chairman, Denis Brosnan, writes Johnny Ward.

Speaking on Wednesday during RTE's coverage of the Punchestown festival, Brosnan criticised the betting exchange for not contributing enough to Irish racing. He added that the sport was suffering badly because of its inability to profit from online and telephone betting.

Betfair contributed €4.5m to Horse Racing Ireland between 2006 and 2008 and proposed to pay the same amount for the next three years, but the offer was refused.

Punchestown ended a six-year relationship with the betting exchange recently when it rejected a €100,000 sponsorship deal at the behest of HRI. However, Brosnan refuted the suggestion that racing's governing body had refused Betfair's offer over the next three years.

He said: "That's not quite right. Basically, if you don't pay you can't play. Betfair is the biggest betting exchange; they wanted to get into Punchestown for very little money.

"They haven't paid HRI any money in 2009 and we've a letter from them in the last week or so saying they don't intend paying any money in 2010 unless the government makes them do so."

However, Betfair's regional manager for Ireland, Graham Ross, claims that his company "are now not in a position to re-establish the funding agreement Funding Agreement

Ross explained: "To our knowledge, Betfair, and at a lower level, ****, are the only betting operators to have contributed anything at all to HRI from their online businesses in Ireland.

"Betfair remains committed to the Irish market, and has since last year been supporting the Irish government as it seeks to put in place a tax regime whereby overseas-based online operators can contribute gambling duty on their Irish business."
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