HRI says there will be no delay to introduction of new betting tax system

Horse Racing Ireland’s chief executive has said there will be no delay to the upcoming introduction of a new betting tax system in this country despite Britain’s point-of-consumption tax for overseas based bookmakers being referred to the European Union’s Court of Justice.

The British law, which came into force last December, has been referred by the High Court in London after finding in favour of the Gibraltar Betting & Gaming Association which argued the online gambling tax raises issues that should be decided by the European Court.

The GBGA claimed the new tax is discriminatory and restricts movement of services and there has been speculation the British government could be forced to repay tax already secured.

"It is not an unexpected development. It is one to watch but not one to have concerns about. We will have to wait and see and check out the detail of the case," said HRI's Brian Kavanagh. "The basic position is unsustainable whereby you can stand in a betting shop and pay a certain rate of tax on a bet, then stand outside, telephone a bet, and pay a different rate of tax."

The introduction of Ireland’s new Betting (Amendment) Bill has been repeatedly delayed, with a number of EU examinations of the new legislation carried out, something Kavanagh points out it has in common with Britain’s gambling tax regime.

“It has been through the European validation process. Now whether this case in Britain is a technicality whereby the validation process can be tested in court, I don’t know.

“But the system has been operating in Britain since December and the Irish system will come in in a few weeks time so there will be no hold up in that respect. I think it is a case of watching what is going on. Both pieces of legislation, in both jurisdictions, had to be run by the EU before being introduced so they’ve been through that process,” he said.