Tax on online, phone betting

THE Government is to introduce a tax on online and telephone betting as a means of financing the bloodstock industry.

Taoiseach Brian Cowen said: “I believe such support should continue to come from the proceeds of betting duty. All forms of betting including betting offered over the internet, other remote platforms or over the telephone should make a contribution.

“Such betting must be brought within the tax net, not just because it will increase revenue, but also because it will mean that those not contributing to securing the future of important indigenous industries will make that contribution.”

Legislation was being drawn up “to ensure that overseas betting providers comply with a licensing regime that will permit them to sell their products into our jurisdiction”.

The rules “will have the benefit of facilitating the extension of the tax regime for the betting industry to all those providing online and telephone betting and so underpin funding for the racing industry”.

Speaking to representatives of the Irish racing and breeding industries at an Irish Field-sponsored event, Mr Cowen said, with 22,000 full-time employees in the thoroughbred equine sector, the bloodstock breeding and racing industry is of national importance.

“Figures published recently by Horse Racing Ireland show that last year, Irish horses were exported to over 33 countries, with a total value of €175 million.”

Irish racing, in common with other sectors of the economy, is facing a challenging economic environment, he said. Given the current pressures on the public finances a more sustainable system of support for the industry needs to be put in place.