Coveney makes online betting tax pledge
Delivering a message that was greeted warmly at yesterday’s Irish Horse Racing awards at Leopardstown, the minister issued his intention to help racing become self-funding “in the medium to long term”.
Having admitted upon taking over the agriculture portfolio nine months ago that he knew next to nothing about horse racing, Coveney has been doing his homework.
He pointed to the fact that the Horse and Greyhound Racing fund had been almost untouched (cut by €1m) despite heavy cutbacks in other sectors as proof that the Government understood the industry’s “enormous economic benefit”, generating as it does almost €1bn and providing 16,000 jobs, while selling almost €150m worth of horses to 36 countries last year.
Any attempt to bring about short term gain by virtue of a significant reduction in the fund could have had negative consequences in the longer term, according to the minister.
“I’m not going to allow that to happen and will justify to anybody the continued expenditure of the Horse and Greyhound fund,” he said.
“This country is a true leader in the equine world and shows the value of the pursuit of excellence. As a country, it is fitting that we should take pride in our success and encouragement from our achievements. The great success enjoyed in 2011 created a ripple effect throughout the entire industry, enhancing its reputation and benefiting all those involved in the industry either directly or indirectly.”
The minister said he wanted to change the funding structures of the sport and didn’t want “to have to go cap in hand to the Department of Finance” on an annual basis.
“Over the medium to long term, I would like to see the horse racing industry funding itself through levies from betting offline and online, as well as the betting exchanges.”
Expressing the opinion that racing needs “more financial support” rather than less, he explained the importance of having a revenue stream model in place that had a “sound legal footing”.
“Early next year, new legislation to introduce a new licensing system so we can have an online levy will be introduced. I have seen it in draft form. This will see a 1% levy for online betting as well as offline.
“I’m confident we’re close to getting it right and that you will see it in weeks. Then there can be a discussion around whether the rate of 1% is sufficient or if a higher rate might be appropriate but first we must bed down the revenue stream.”
Meanwhile, the minister also revealed he would be commissioning an external review of the structures and legislation governing racing. This should not be seen as a threat, he insisted, but rather as an opportunity for all the industry’s stakeholders.
