Punters may face tax-free era on May 1st

Ireland's off-course punters are on the verge of a tax-free era following the decision of several leading bookmakers yesterday to pay the two per cent betting tax themselves.

Chief among them were the Paddy Power chain which had initially said they would only cover betting tax costs if the Minister for Finance cut the rate from five to one per cent in Wednesday's budget.

However, their position quickly changed and the Paddy Power chief executive, Stewart Kenny, who is also spokesman for the Allied Betting Shops Association, predicted other bookmakers will follow suit from May 1st.

"I think this will be widespread and I think I can safely say the rest of the industry will follow," Kenny said.

Another firm quickly off the tax-free mark was the Boyle's chain and there is widespread confidence that the industry, which is estimated to generate almost £1billion a year, will cover its cost through increased turnover.

"I am hopeful this will be self-financing straight away. Tax free betting should see turnover dramatically increase," said Kenny.

"We've gone down this road because punters were expecting it and I think the industry had decided to do it anyway. Paddy Power doesn't wait and we're going with it.

"The industry is now financing Irish racing out of its profits even though it is not represented on the new board (Horse Racing Ireland). But that is another day's work," he added.

The chain reaction predicted by Paddy Power kicked in quickly with Cashmans of Cork confirming that they, too, will absorb the tax.

"We have to follow suit or else we will be closed down in a week," said their spokesman, Paul Cashman.

However, he warned: "There is a good chance the British Horseracing Board will have a one and a half per cent of turnover tax very shortly.

That would mean a three and a half per cent net profit tax and no bookmaker chain can mange to make a profit on that. That is a harsh, mathematical and economic fact."

On the racing front itself, Nick Dundee is scheduled to make his first start in 10 months at Cork in 11 days time where the feature will be the Grade Three Hilly Way Chase.

"It's one day at a time with this horse but we will aim as high as we can and go where the race is appropriate," said trainer Edward O'Grady yesterday.

Nick Dundee has not run since unseating Norman Williamson at Gowran Park last February in a race won by Bob Treacy.