Ireland has added a provision in its 2020 budget to pay bookmakers €50,000 a year for relief from the 2 percent tax levied on betting in the republic, a measure designed to support the country’s independent bookmaking sector.
Minister for Finance Paschal Donohoe told SBC News last week that bookmakers will not be subject to taxation on the first €50,000 in wagers they take in a year, but this will be subject to EU state aid rules.
Ireland’s independent sector has faced an uphill battle competing against larger betting operators such as Paddy Power, Boylesports and Ladbrokes following the doubling of the betting tax from 1 percent to 2 percent last year.
While the tax increase expects to generate an estimated €95 million in 2019, a number of independent bookies have had to close their doors as a result. Bookmakers are required to tax each bet tied with them, with the levy tied to state cash which is then used to support the horse and greyhound racing industries.
Also confirmed in the 2020 budget is receive €80 million in funding for the Irish Horse and Greyhound Racing Fund, of which €67.2 million will be directed towards Horse Racing Ireland (HRI), a figure that remains the same as last year. The unchanged budget, according to HRI Chief Executive Brian Kavanagh, has been attributed to the “standstill situation” over Brexit.
“All this is framed in a Brexit context,” he said. “We have long-term plans to develop the industry and they will need funding. But the main short term issue is Brexit and in the context of the threat of a no-deal Brexit it was never going to be a year of initiatives.
“It’s a standstill situation. We’ll have to take this away and look at the implications for our own budget. It will make the budget process trickier and tighter.”
