Paddy Power slam HRI betting tax plan

Leading Irish bookmaking firm Paddy Power has rejected claims by Horse Racing Ireland that betting tax should be increased to subvent the wealthy racing industry.

The company also rejected suggestions that off-course betting tax funds racing throughout the world.

John O’Reilly, Chief Executive, Paddy Power plc, said today: "In no other country in the world is the tax collected from non-related events given to racing.

"The tax take must go to the Exchequer with Government then deciding what funding to allocate.

"The €50 million plus grant already given to horse racing every year represents approximately €40 per person for every time anyone goes racing.

"HRI does not need any more funding especially on the back of the small stake punter … HRI have wasted their grant on prize money rather than investing in infrastructure," O’Reilly said.

The 2004 estimate for the total exchequer take from off-course betting tax is €40m.

Between €4m and €5m of this comes from bets on Irish horse racing which represents between 10% and 15% of off course betting turnover.

At the moment, the tax on bets placed in betting shops is 3% while on course betting is free.