Three years ago Michael Noonan took the reigns of the Ministry of Finance in Ireland and since then, he has been making unsuccessful attempts to impose a new tax that would boost the annual revenue of the country with more than €25 million.
The new rule Noonan has been trying to implement was intended to require foreign gambling providers pay higher taxes in order their services to remain available on the Irish gambling market.
According to the estimates, Irish residents spend more than one and a half billion euro on online gambling activities every year. However, a great part of the sum is obtained by foreign gaming companies that take a full advantage of the tolerant gambling regulations in Ireland.
Another reason why foreign gambling operators prefer Ireland, is the popular “double Irish” term.
In other words, major gambling providers benefit from the modest taxes and they avoid paying a fortune to the government for offering products and services.
The so called Betting Bill is likely to become official really soon. Once implemented, foreign bookmakers will be required to follow the new rules and obtain a licence that allows them to operate within Ireland.
No matter if they have an office in the country or they act as remote gambling operators, there will be no exemptions – every gaming operator must be licensed. A tax for every betting transaction will also be deducted.
The local bloodstock officials will benefit from the higher taxes because a part of the sum will be set aside for improving the sector.
Michael Noonan commented that the Government is fully aware of the importance of the bloodstock industry and the great impact it has on the development of the rural economy.
That’s why the Government is willing to invest into the further development of the horse racing by raising enough funds to cover all expenses. It seems like Noonan has come to the conclusion that the increased taxes is the only alternative for maintaining the greyhound racing industry in a decent condition.
The Bill was proposed last year and all efforts of Noonan were concentrated on making it official as soon as possible. His top priority was ensuring that all gaming operators, no matter if they are land based or remote, have equal rights on the Irish gambling market.
One of the most popular Irish bookmakers, Paddy Power, welcomed the decision for the Bill authorization.
During the years, several politicians have made efforts to refine the outdated gambling laws. Some of the existing regulations were implemented at the beginning of the 20th century and they are obviously not compatible with the fast developing gambling industry. The last Bill was proposed by Mr Noonan in 2011 but apparently it is still waiting for approval.
