Winnings tax would shut 33% of betting shops

THOUSANDS of jobs would be lost and a third of betting shops would close if a proposed 2% tax on winning bets is introduced in December’s budget, bookmakers have warned.

Industry and political sources believe that Finance Minister Brian Lenihan is likely to favour the introduction of such a controversial measure given the Government must seek at least €3 billion in cuts to its 2011 budget. It is estimated that such a tax could raise around €60 million a year.

While punters would face a 2% tax on all winning bets, it is anticipated that many betting shop owners would absorb the charge on payouts in order to prevent gamblers switching to online and telephone betting operators based outside Ireland who are not taxed. Irish bookmakers currently pay a 1% duty on turnover.