It’s a bad time for operators who are local to Ireland. Their government has announced their plans to double the gambling taxes on bookmakers, plus a big increase in commissions on betting exchanges. Also, the law has a condition that operators cannot transfer the burden of the taxes to their consumers.
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Ireland and Gambling
The government has recently announced that rumors of doubling the gambling taxes was true. The tax will change from 1% to 2%. Betting Exchanges, meanwhile, will increase from 15% to 25%. These changes will be implemented starting January 1, 2019. The 1% tax has been in place for around 13 years, so the increase is welcomed by a few. But the timing of the increase is not a good one. There have been closures of some betting shops as reported by the Irish Bookmakers Association (IBA). It is the worry of local bookmakers that the increases in the taxes collected might make things worse for the industry.
But, the government is saying that the Irish government could stand to earn an annual revenue of as much as €51.6 million, which will be a tremendous help to their fiscal woes. And unlike what others see in gambling industry news, operators in Ireland are not optimistic about the next year, with some saying that their revenues can be affected by almost 4%, with bigger sportsbooks saying this new law could cost them €22 million or more each year.
Of course, the closing of betting shops doesn’t solely affect bookmakers. Each betting shop that closes causes the unemployment of at least 5 people, too.