Bookmakers in the Republic of Ireland will receive a relief of up to €50,000 from the 2 per cent turnover tax levied on betting in the country in the 2020 Budget. The relief from betting duty and betting intermediary duty will come into effect from next year, and forms part of a cluster of tax policy changes in the upcoming Budget. As a result of this measure, bookmakers will not have to pay tax on the first €50,000 in wagers they take each year, a limit applicable in each calendar year. The relief will only apply to single undertakings.
The current 2 per cent turnover tax has been in place since January this year. However, in June 2019, Finance Minister Paschal Donohoe confirmed that the process to replace this scheme with an alternative system for independent bookmakers was already in progress. Mr Donohoe stated that he had been working with the independent bookmaking sector to provide an alternative proposal. The department’s tax strategy group earlier this year suggested bringing in a relief of €2 million a year. This would give smaller independent bookmakers more leverage against titanic names such as Paddy Power, Ladbrokes and Boylesports.
Betting tax in Ireland is expected to yield around €95 million by the end of 2019.
Disappointment For Horse And Greyhound Racing
On the other hand, the 2020 budget brought no such good news to the Irish Horse and Greyhound Racing Fund, whose annual contributions have frozen at €80m, of which