BOOKMAKER PADDY Power has said 350 jobs earmarked for Ireland could be lost if the Government does not find a way to apply an online betting tax to its offshore competitors.
At the company’s agm yesterday, chief executive Patrick Kennedy said that these new “smart economy” jobs were at risk. There would also be a potential impact on 700 existing jobs at their site in Tallaght following Brian Cowen’s announcement that internet betting will be taxed.
“We will employ an additional 750 staff over the next three years and 350 jobs are earmarked for Ireland . . . However, we have felt for some time, and the Taoiseach’s comments reinforced this, that there is a risk that these jobs will have to be diverted from Ireland . . . in anticipation of a tax that gives advantage to offshore operators,” he said.
Mr Kennedy said it would be an “absolute outrage” if this was effectively a tax on Irish jobs. “We don’t have an issue paying betting tax on Irish internet betting. However, we do have a serious issue if we have to pay it solely because we employ people in Ireland.”
He said the Government needed to make sure that “bullet-proof” initiatives were in place to avoid this, noting that governments with far greater resources had failed to enforce restrictions on internet betting. He suggested that a UK-type licensing model would be more effective.
Mr Kennedy added that the funnelling of money collected from betting taxes into the Irish racing industry could not be justified in this economic climate.
He said the Government had given €540 million in direct grants to Horse Racing Ireland in the past 10 years, the majority of which goes to prize money, but he called the link “flimsy” as 90 per cent of the company’s internet and telephone betting had “absolutely nothing” to do with Irish racing.
“It looks like prize money to wealthy horse owners is more important than jobs in Tallaght.”
Shareholders heard that turnover was up by 32 per cent in 2009 due to favourable sports results and a rise in internet betting.
The online division accounted for two-thirds of operating profit last year. Profits were ahead of expectations, while forecasts for 2010 were positive despite a difficult environment in Ireland.
“It’s a story of two halves. Our Irish business is under some pressure, so where the growth is coming from is market share online and overall in the UK, and substantial growth in Australia,” Mr Kennedy said. The company hopes to enter the French market ahead of the World Cup.
