The Government's plans to make up racing's financial shortfall due to the abolition of betting tax last night received mixed reviews from the country's bookmakers.
The bulk of the almost £6 million shortfall from the abolition of the levy will be picked up by on-course bookmakers, who had their betting tax abolished in the budget, and by off-course betting shops, who had their tax reduced from 10 per cent to 5 per cent.
Bookmakers next year will pay almost £4 million into racing while the Government will give an additional £1.7 million. In addition, the racecourses are expected to contribute a figure of close to £500,000.
Last night, the Minister for Agriculture Joe Walsh, who announced the plans along with the Minister for Finance Charlie McCreevy, said: "This is the culmination of a good deal of discussion with the racing and betting industries and it's aim is to provide a stable financial footing for racing's future." However, a statement from the two betting shops associations described the burden put on them under the new changes as "onerous".
An association source added that the overall mood among off-course bookmakers was "definitely not ecstatic" and called for off-course bookmaker representation in the Irish Horseracing Authority since they were now set to be racing's biggest financier outside of the Government.
Under the plan, off-course bookmakers will be charged £2,000 per betting shops, yielding £1.6 million. There will also be a turnover charge of 0.3 per cent which is calculated to yield £1.7 million.
On-course bookmakers will also have a turnover charge of 0.3 per cent to yield £270,000 and they will have an additional fixed rate charge of £370,000 a year.
An additional exchequer contribution of £1.7 million will be raised from a percentage from the off-course betting tax. The racecourses' contribution will be based on an agreement to be drawn up between them and the racing authorities and is expected to yield a sum in the region £500,000.
There was some surprise that thoroughbred breeder groups are not being asked to contribute but Minister Walsh explained: "Apart from a small number of larger breeders, it was felt that the majority of those in the breeding industry, especially in the National Hunt area, were not capable of making a significant contribution."
