A boom in betting saw bookmakers increase turnover by £219 million last year, an increase of 42 per cent on 1998.
Provisional results compiled by the Revenue Commissioners from the tax returns of bookmakers show turnover from off-course betting grew to £730 million last year, from £521 million in 1998.
Revenue sources believe that much of this increase was due to the decision by the Minister for Finance, Mr McCreevy, to cut betting tax to 5 per cent, from 10 per cent, from July 1st, 1999. the total amount of duty collected remained virtually unchanged.
The total amount collected in 1999 was £53 million, compared to £52 million in 1998.
The boost in turnover meant there was no loss to the Revenue Commissioners, said Mr Brian Farrell, spokesman for the Irish Independent Betting Office Association.
"The Minister got it right. We reckoned that the cut in tax would be self-financing within 2 1/2 years and we are on target for that," he added.
The increase in turnover by Irish bookmakers is being used as an example by British bookmakers in their campaign to persuade the Chancellor of the Exchequer, Mr Gordon Brown, to cut betting tax to 3 per cent.
Currently it stands at 6.75 per cent.