Paddy Power has resigned from the Irish Bookmakers Association (IBA) following a disagreement over the body's pre-Budget submission and a television rights deal, writes Ciarán Hancock, Business Affairs Correspondent

Ireland's biggest bookmaker informed the IBA of its decision yesterday, which will surprise many in the racing industry.

It is understood that the quoted company, which is led by Patrick Kennedy, was unhappy with the content of the IBA's Budget submission, which is to be sent to the Department of Finance.

The submission included proposals calling for fixed odds betting terminals (FOBTs) to be allowed in betting shops and for a reduction in the tax regime to allow for online and telephone operations to be repatriated to Ireland from the Isle of Man.

While Paddy Power operates FOBTs in its UK shops, it believes the Government here is opposed to their introduction and sees little value in pursuing the matter.

Similarly, it does not believe the Government will change the tax regime to allow it relocate its online and telephone betting operations back to Ireland.

Irish bookmakers are charged 1 per cent of their turnover in tax while the Isle of Man levies a 1.5 per cent tax on profits.

Paddy Power's decision to sign a deal with Turf TV in April to show live racing in its shops from 31 racecourses in Britain is also believed to have angered members of the IBA, many of whom are in dispute with the promoters of the new service over costs.

In a statement, Charlie Kelly, Paddy Power's representative on the IBA, outlined the book- maker's reason for resigning.

"Since we agreed to sign up to Turf TV in April to ensure live racing for our punters, the majority of the members of the association have chosen not to engage with us," he said.

"As a consequence, we no longer have any input into the organisation.

"Its draft Budget submission proposes the introduction of fixed odds betting terminals into shops in Ireland.

"Given the stated opposition of the Government to these machines, we are not in favour of this submission.

"As a result, we have tendered our resignation today."

Paddy Power said that some members of the IBA's 12-member council had refused to attend recent meetings as a protest measure.

This was rejected by the IBA, which expressed its "disappointment" at Paddy Power's decision.

IBA chair Sharon Byrne said differences on "key objectives" contained in the IBA's Budget submission, "including funding of the horse racing industry, repatriation and measures needed to bolster the future of smaller bookmakers, proved to be irreconcilable".

"To serve the interests of the majority of our members and the industry as a whole, we have no choice but to accept the resignation of the organisation."

The IBA was founded in April 2005 and is the largest representative body of the industry here.

Its membership comprises about 750 of the 1,100 betting shops here, and accounts for in excess of 80 per cent of the off-course bookmaking industry.