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Increased Betting Taxes Likely To Hit Irish Horseracing

Increased Betting Taxes Likely To Hit Irish Horseracing

A higher tax rate has been proposed by Horse Racing Ireland (HRI), Ireland’s horse racing governing body for the betting sector. The body has asked the Industry to implement an increase in 1.5% for sports betting through a petition which was submitted to the Department of Finance.

The proposal seeks a rise in the rate of the duty from the current 1% of annual bookies’ sales to 2.5%, which would be passed on to the customers. Soon after the government removed tax in 2006, this charge came into existence. The Operators have rejected the new law and have shown their disparity.

 The President of HRI, Brian Kavanagh, expresses in the proposal that the new tax would benefit the public. He further stated and clarified through this through the betting turnover figure, where in 2016 just €51m was collected from the tax on €1.1bn of betting turnover as compared to the €68m tax levied on €1.1bn in 2001, concluded saying that though the revenue of the betting market increased during the time the duty has just fallen.

HRI has also recommended on increasing the commission on the gross profits in betting exchanges from 15% to a shocking 37.5%.