Irish government doubles betting duty in 2019 budget

Irish government doubles betting duty in 2019 budget

Wednesday, October 10, 2018 Posted by News Team
Ireland
Increase in turnover tax and higher tax on exchanges likely to hit Paddy Power Betfair

Irish finance minister Pascal Donohoe has announced that the betting duty paid by operators licensed in the country will double from 1% to 2% of turnover. 

Effective from January 1st, 2019, the increase in betting duty will be accompanied by an increase on tax on commission earned by intermediaries, such as betting exchanges, which rises from 15% to 25%.

The new rates are expected to generate an additional €39.5m for the Irish state in 2019, then €51.6m in the next full financial year. 

Donohoe said that the government’s priority had been to “level the playing field” by extending tax to remote bookmakers and betting exchanges. 

He said that while this had been achieved with the launch of a new licensing system in 2015, he believed it was “timely” to increase the tax on amounts wagered. 

The measures represent a major hit for Paddy Power Betfair, Ireland’s highest-profile bookmaker, and operator of the market-leading betting exchange in Betfair. 

The operator noted that if the increased rates had applied to its Irish sportsbook stakes and change revenue for the 12 months ended June 30th, it would have paid an additional £20m in betting duty.

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