Licensing system for online betting urged

BOOKMAKERS YESTERDAY told an Oireachtas committee that a licensing system rather than a turnover tax could offer a means of capturing a slice of the revenue that Irish people bet online.

The Committee on Arts, Sport and Tourism heard presentations from the betting, horseracing and greyhound industries on the future of the State’s horse and greyhound fund, which is used to support both sports in the Republic.

The horse and greyhound industries, which employ 27,000 between them, want to see the current 1 per cent levy on betting shop turnover extended to online and telephone betting operations, and the extra cash used to support their businesses. Both Paddy Power, which has an online business based in Tallaght, Dublin, and betting exchange, Betfair, proposed using licensing systems that would attract players to the market, and boost employment and investment in the sector.

Liam Cashman of the Irish Independent Betting Offices’ Association told the committee that more than 600 jobs were lost as the recession forced 120 independent bookies’ shops to close last year.

He added that the damage to the industry would have been worse had the Government gone ahead with a proposal to double the tax on retail betting turnover to 2 per cent.

Brian Kavanagh of State agency, Horse Racing Ireland (HRI), said 2,000 jobs had been lost in horseracing over the last year, and pointed out that this was equivalent to the number lost at Dell in Limerick.

He said the horse and greyhound industries wanted a fair rate of return from betting so they could get on with creating jobs.

Committee member Michael Fitzgerald TD suggested that HRI engage with the betting industry with a view to improving its fixture list, for example by making more use of its all-weather track at Dundalk. He also raised the issue of the income derived from providing satellite TV with Irish racing pictures and commentary.