Northern Ireland casino legalization hope; Republic bookies face tax hike
Northern Ireland's gamblers are just fine with allowing casinos while the Republic of Ireland's bookmakers are all but upset with yet another tax hike.
Last December, the Department for Communities in Northern Ireland (DFC) conducted a survey to gage public attitudes about gambling. The public was invited to weigh in on anything from approving casinos (land-based and online), the position of promoting gambling and whether Northern Ireland wanted its own regulator for gambling.
This Wednesday DFC official Michael McAvera told the government that 382 responses had been submitted at the consultation, of which three-quarters came from individuals. Around 60% of these responses supported the legalization of casinos, while almost two-thirds want to grant retail bookmakers the freedom to open on Sundays.
There was also strong support (97%) to compel casino companies to finance responsible gaming efforts and services for addiction. Complete specifics of the outcome of the consultation won't be announced for a couple of weeks, after which lawmakers will determine what measures are necessary.
Present shortage of casinos means poker players in Northern Ireland have a difficult job seeking places to play (at least offline). Slot machines in betting shops in Northern Ireland have a gross stake of only 30p vs €5 in the Republic of Ireland and a net reward of just £8 (compared to €500 down south).
Republic's Bookies Prepare For Fresh Tax
Meanwhile, bookmakers in the Republic are planning for a potential 0.25% hike in their betting taxes to cover pandemic-related government revenue shortfalls. The budget proposal, which came from the Tax Strategy Group, indicates this hike might add another €8m to next year's coffers, for a €11m annual haul in later years.
In January 2019, Irish bookies saw their betting turnover tax double to 2%, and their operations are just now returning from their long pandemic suspension, but obviously they are not crazy over the rise in their overheads so far. Next month, the government is announcing its new budget.
The Racing Post quoted Sharon Byrne, Chairman of the Irish Bookmakers Association (IBA), saying that the current turnover tax was still "neither fair nor viable for our industry" and any new hike meant a "very dangerous and unpredictable future" for its members. Byrne said bookmakers record shop turnover at the moment down around 30% year-on-year.
However, Brian Kavanagh, CEO of Horse Racing Ireland (HRI) - a big beneficiary of extra cash earned from bookmakers - noted government estimates showing that while july's €8.1m betting tax levy was less than one-third of the July 2019 figure, the year-to-date figures for 2020 are down by just about €2m from the first seven months of 2019.
Kavanagh indicated that the year-to-date number means betting operation was considerably ahead of last year before the pandemic occurred, and that doubling the turnover tax did not have the devastating effect on betting that the IBA argues.
Last year, the government enacted moderate incentives for small bookmakers that abolished taxes on their first €50k annual turnover. If the proposed 0.25% tax is levied on the industry, the government will increase the amount to €65k.
