It was announced that the plan the Irish gambling authorities had is not likely to be developed in the next few months. The proposal for increasing the taxation for online gambling was about to take effect really soon but all of a sudden it was delayed for next year.
The delay was announced by the Finance Minister of Ireland. Such a move was believed to give the bookmakers a grace period before the new taxation is put into force.
Irish authorities have been planning to implement new taxes for three years now. Back in 2011, they wanted to extend the tax, valid for bets, made in shops so it becomes applicable to bets, placed online and via the telephone. These changes were supposed to cover only wagers made on the territory of Ireland.
However, the legislation procedure was postponed several times and at one point, it was brought to a standstill. It became clear that the bill was not likely to pass before January as Maltese officials expressed their concerns about the licensing procedure, valid for operators that are already issued a license by another jurisdiction.
Michael Noonan, the Finance Minister, commented on the situation and said that according to the plan, the members of the Parliament will proceed with the legislation procedure once the “standstill period” is over. The Minister revealed that information in response to the spokesman of the opposition.
He also added that he totally agreed with the frustration of the Deputy about the delays and all setbacks that have been preventing the bill from validation.
By comparison, any other amendment of an existing law is usually passed or rejected by the houses of parliament as quickly as possible.
According to the latest statistics, almost half of the Ireland-based players make their bets online. In other words, the prolonged implementation of the tax has a devastating effect on the local economy. As for the last three years, the losses caused due to this kind of delays were estimated to be approximately €50 million.
One of the most popular bookmakers in the region – Paddy Power, is among those that benefited from the delay. A great part of company’s turnover is generated via online wagering. The bookmaker said that if the bill has been implemented a year ago, it would have had to pay €7 million to the government.
The attempts of Irish authorities to impose new taxation coincide with the efforts Paddy Power and a few other bookmakers make towards adapting to the new rules and taxes in the UK.
However, UK regulators have another unpleasant surprise for them. In March, the taxes on high stakes gambling machines are to be increased.
