The Irish Department of Finance announced it will revisit a pending tax hike, scheduled to take effect January 1, which would double the betting tax. The action was taken in response to warnings from the Irish Bookmakers Association that a large number of jobs would be lost, said Finance Minister Paschal Donohoe. As a result, the tax could be delayed or dropped, he said.
IBA Chair Sharon Byrne stated the Department of Finance failed to consult the Irish betting industry regarding the new tax. “Already since the budget measures were announced, I have spoken to a number of small independent bookmakers, some of whom have been in business for more than 40 years, who now believe they have no option but to let their staff go and close their doors. We predict that there will be 300 shops closed when the tax is enacted with the loss of at least 1,500 jobs.”
Officials at Boylesports, Ireland’s second largest operator, added, “We are committed to making government and all relevant agencies understand the impact this poorly considered policy will have on the sector, our business, us and our families. We will take all steps available to safeguard our business, our industry and most importantly the employment of all our people.”
Ladbrokes officials also said the impending tax could cause the company to reduce its presence in Ireland and decrease sponsorships and bookmaking activity at some racetracks.
Also in Ireland, the two European Union anti-money laundering measures recently were signed into law as part of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018. The laws are meant to include gambling service providers in anti-money laundering legislation. Justice Minister Charlie Flanagan said, “This legislation is really important. Money laundering is a crime that helps serious criminals and terrorists to function, destroying lives in the process. Criminals seek to exploit the EU’s open borders and this EU-wide measure is really important for that reason. I and my government colleagues are committed to systematically tackling corruption and organized crime.”
Among other provisions, the act requires banks and other financial institutions and gambling services providers to carry out due diligence tests to verify customers’ identity, report suspicious transactions and comply with other obligations of the act. It also expands the role of the Financial Intelligence Unit, which collects information about suspicious transactions; enhances international co-operation; and extends the designation of a “politically exposed person.”
