Bookmakers go online

The internet's increasing grip on modern society has seen Irish bookmakers rise to the challenge, and the country's biggest bookmaker chain, Paddy Power, will start betting on the web in early April.

In ahead of Paddy Power is the on-course bookmaker Raymond Farrell who launched his own website yesterday, but the multimillion pound investment Paddy Power's are planning could herald the introduction of tax-free betting on the internet later this year.

With this in mind, all eyes are on the budget announcement of the British chancellor of the exchequer, Gordon Brown.

"William Hill are marketing their offshore operation very aggressively in an attempt to highlight the betting tax issue in Britain to Gordon Brown. I'm sure our own government will be watching closely because they will not want to be trumped," said the Paddy Power spokesman Stewart Kenny yesterday.

Kenny added it's his view that trying to tax betting on the internet is impossible and pointed to the example of the British firm, City Index, who ended up paying the betting tax themselves.

"In the short term I can see ourselves going down the same route, but we have all seen what has happened with offshore betting and this is a real challenge to government," Kenny said.

Powers have been developing their internet operation for the last six months and are confident it will introduce an entirely new betting market.

"Getting the technology to cope with accumulator bets involving various sports has been complicated, but it will open up an international market for us. At the start, I think, turnover might be slow, but with interactive television transmission it will be huge," said Kenny.

He added: "I think reports of the death of the High Street shop because of the internet have been exaggerated. Grafton Street will not be a wasteland because of it and I think the social aspect of the betting shop is still a big advantage.

"It could affect potential increased income of shops and telephone services but it will bring a new market to betting, especially sports betting. The advantage to us is an international market instead of just looking at operations in Cork, Dublin or wherever, while the punters will have ease of access and can bet from the comfort of their own homes."

Raymond Farrell echoed those thoughts at his own website launch yesterday. "If we did not get early entry into this industry, our technological advantage would be lost. As a modern bookmaker it is essential to be part of the IT revolution. There is room in the betting market for online betting without affecting off-course shops or on-course bookmakers," he said.