Kenny bets on wooing online bookies

Taoiseach Enda Kenny is betting on wooing online bookmakers to Ireland by introducing a tax system which could bring an extra €20m into the Government’s finances.

Speaking after the Paddy Power jobs announcement, Mr Kenny said he believed the tax change would see other major players in the sector choose this country as a physical base.

The tax plan, expected to be brought in before Christmas under the betting bill published earlier this year, will mean all online gambling and betting franchises which have Irish customers will be obliged to pay tax in this country.

Mr Kenny said the rule change would “level the playing field” for bookmakers based in Ireland and those which have online Irish customers but are based abroad.

He argued the plan — expected to be worth €20m a year to the exchequer — would remove a potential hurdle in locating operations in this country, and therefore help to create more jobs for the Irish economy.

“This [online gambling] used to be exempt, so what we are doing here is bringing certainty and stability to the sector,” said Mr Kenny.

“It’s hard to say how much that’s going to bring in, it could be €20m, but it will be legislated for when it comes in under the betting bill later on this year. That legislation will bring with it a fair and equitable licensing and regulatory regime for all bookmakers.

“That’s an important element of the online investment being made by companies like Paddy Power. We hope it will encourage other firms and consider Ireland as a base for their work under a proper regulatory regime.”

The plan received a firm show of support from Paddy Power chief executive Patrick Kennedy.

“The most important thing from Paddy Power’s perspective is that there’s a level playing field so the operators that actually base themselves in Ireland as opposed to those overseas who take their pay from people in Ireland are on an even keel,” he said.

“The Taoiseach talked about putting in a quite substantive licensing and regulatory legislative case around it [the tax plan], and as long as that’s the case then the level playing field will ensue. And that’s good for us and jobs here.”

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