Republic of Ireland’s crackdown on unlicensed gambling machines has brought an additional of €1 million in tax contributions, Revenue has said in comments on the progress of a nationwide project aiming to curb illegal gambling operations.
Local news outlet The Journal reported earlier this week citing official data from the taxation government agency that the number of gaming machine licenses issued rose from 6,088 in 2016 to 9,612 in 2017. The significant increase also resulted in tax revenue of €2.7 million being generated last year, up from €1.8 million in 2016.
Revenue has explained that the increase in tax revenue followed the launch of a nationwide project aiming to monitor whether gaming machine operators were compliant with regulations and to crack down on any violations. Asked about their progress, a Revenue spokesperson has told The Journal that 300 non-compliance interventions have been made since the start of the project. They have all involved one form of non-compliance or another and have resulted in the government agency collecting the additional amount of €1.1 million.
The Revenue spokesperson further pointed out that as the project was ongoing, they were not authorized to provide more details on the matter, but the agency would look to further address all forms of non-compliance in both the gaming and amusement sector.
Gambling Machine Crackdown
News emerged late last month that Revenue has sent enforcement letters to a number of arcades across the capital Dublin, following an investigation by The Times that found that the facilities had operated gambling machines despite a long-standing citywide ban on devices of this type. Such facilities were given 21 days to remove the machines or face seizure and penalties.
Dublin’s arcades are allowed to operate arcade gaming machines that award players with no more than the opportunity to play again or non-monetary prizes the value of which does not exceed €7. The operation of arcade/amusement machines require licenses from the competent regulators. On the other hand, under a 1988 reform, the operation of real money gaming machines is strictly prohibited within city limits.
However, The Times found that a number of arcades across the city have been using their amusement machine licenses to operate gambling machines, thus violating the long-standing ban. As mentioned above, these properties were issued enforcement letter and will have to remove their gambling machines or face their seizure and additional consequences. The machines at the arcades were found to have been offering casino-style games, including video poker, roulette, and blackjack, and allowed players to wager up to €2,500 and win monetary prizes of different size.
Commenting on Revenue’s move, the Irish Amusement Trades Association has said that it was considering legal action against the taxman and that its recent actions violated principles of the European Union concerned with the provision of gambling services in member states.
