Bookies forecast doubling of betting turnover

The smiles on the faces of bookmakers suggested a 100/1 shot had won the Grand National or Bray Wanderers had won the National…

The smiles on the faces of bookmakers suggested a 100/1 shot had won the Grand National or Bray Wanderers had won the National League. However, it was the Minister for Finance who had provided the result in yesterday's budget.

His surprise abolition of on-course betting tax, and his reduction in the tax paid in bookies' shops - from 10 per cent to 5 per cent from July 1st next - was greeted warmly by the bookies, who forecast a doubling of betting turnover.

The changes followed an intensive lobbying campaign by the Allied Betting Shops Association and the Irish Independent Betting Offices Association, which together represent the majority of bookmakers.

Mr McCreevy explained in his Budget speech that he had received strong representations that the 10 per cent betting tax, which brings in £45 million per annum, was an incentive for the betting public to use offshore tax-free betting by telephone.

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This, he said, "could place tax revenue and jobs at risk".

He believed the reduced off-course betting tax would increase betting activity, but he was making a "prudent provision" for losses in revenue - £12 million next year, and £24 million in a full year.

Offshore tax-free betting services have been increasingly offered to gamblers in the Republic since the Isle of Man authorities granted licences last April to William Hill, the British bookmakers, and Offshore Betting, a company established by an Irishman, Mr Vincent Caldwell.

The Isle of Man imposes a 0.3 per cent betting tax rate on international betting - the tax is absorbed by the bookmakers. Mr Caldwell, who is originally from Belfast, said last night he had not envisaged his business having any significant effect on the Irish indigenous industry and he was amazed the Minister should "hand away £24 million of Irish taxpayers' money".

However, Irish bookies were full of enthusiasm.

The Irish National Bookmakers' Association spokesman, Mr Francis Hyland, declared: "This is a very good day for bookmakers and punters and gives us all a badly needed shot in the arm. I am not surprised the Minister has abolished the on-course tax completely and I think he was right to go the whole hog. £80 million was bet on the racecourses last year and I think it should go up to £150 million within 12 months. I would say SP betting will double in under two years."

Mr Stewart Kenny of Paddy Power bookmakers said the move to halve off-course betting tax would be self-financing within 18 months. "The message from the off-course industry today is thank you for listening, Minister.

"We are delighted with this farseeing initiative introduced by the Minister. There is now no reason for bookmakers to move their operations offshore, there will be a boost in Government revenue and many more new jobs will be created. He has also struck a blow for the small punter," said Mr Kenny.

"We thought he might only go half way which would not have worked, but this will work."

Tax-free betting could be a significant factor in the number of people going racing and the Association of Irish Racecourses will be hoping the yearly average of 1.2 million customers at their gates will increase.

The AIR spokesman, Mr Frank Smyth, said: "It should be an advantage in getting people to go racing. Certainly punters should enjoy betting in a tax-free environment and it should offset people betting abroad."