Exchequer lost €40 million over delay in introducing online betting Bill - FF

Up to €4 billion in online betting escaped a 1 per cent tax in the three years it took to introduce regulatory legislation, it was claimed in the Dáil.

Fianna Fáil finance spokesman Michael McGrath said that €40 million had been lost because of the extensive delay in introducing the Betting (Amendment) Bill.

The legislation will license, tax and regulate online betting and betting exchanges. It provides for a 1 per cent levy on all telephone and online bets, which already applies in betting shops.

He asked if there was a justifiable cause for this delay, given the €40 million loss in potential revenue.

He said they had to be sure that in putting a tax regime in place for online betting they had to ensure that compliant Irish companies were not put at any disadvantage relative to non-Irish operators.

The first version of the Bill was published in July 2012 but a reformed version was published last July.

Minister for Finance Michael Noonan said last year's Bill was subject to a three-month standstill period under the EU technical standards directive.

He told the Dáil the Bill “provides for a fair and equal treatment of all bookmakers - both traditional and remote - and betting exchanges offering services in Ireland”.

He said provision was made in the 2011 Finance Act for the taxation of remote bookmakers and betting exchanges, subject to a Ministerial Commencement order. This Bill would bring all remote bookmakers and betting intermediaries into the licensing and taxation regime.

Sinn Féin finance spokesman Pearse Doherty said it was "quite amazing that betting exchanges were not charged Vat. It is a service and any other service would be subject to VAT".

He highlighted the case of a local supermarket which sold Mass cards where all profits went to the local friary. But he said the Revenue Commissioners insisted that even though the supermarket was not profiting from it “you’re subject to VAT because you offered a service and you could have increased your footfall because you allowed the charity to benefit from your counter space”.

Revenue applied the letter of the law in this instance “but we have large betting exchanges which are bankrolled by multimillionaires, some of the wealthiest people in this State, who offer a service, without a shadow of a doubt” and “yet VAT does not apply and this State has lost millions”.

Mr Doherty said he had yet to receive an explanation as to which legislation exempted betting exchanges from VAT.