Gambling tax rise in Ireland could result in the loss of 2,500 jobs

[The Buzz]

According to the Irish Bookmakers Association, next week's pending move to double the gambling tax rate will put around 35% of the country’s 850 betting shops at risk of closure and threaten approximately 1,500 jobs.

The current tax rate on betting turnover is 1% and the government is going to increase it to 2%. The country’s finance minister Paschal Donohoe is expected to announce the new tax regime on 9 October.

From The Racing Post:

Irish Bookmakers Association chairwoman Sharon Byrne on Thursday issued a stark warning of major job losses in the Irish bookmaking sector should minister for finance Paschal Donohue decide to increase betting tax in next Tuesday's budget.

Byrne was reacting to recent media speculation, including an article in the Irish Examiner in which unnamed "government sources" suggested the Independent Alliance, minority partners in the Fine Gael-led government, have succeeded in convincing Donohue to double the rate from its current one per cent to two per cent, and quoting a likely €50 million increase in revenue as a consequence.

Byrne said: "We are extremely worried about reports that the betting tax is to be doubled in the upcoming budget. The claim that it would net a further €50m for the exchequer is absolute fantasy.

Read more here: https://www.racingpost.com/news/book...o-ahead/348168

[TheGooner]

A tax of 2% on turnover is significant given that most bookmakers margins on turnover is 5-7% total.
Factor in running costs of betting shop operations like staff, property and fitout and physical shops become a losing effort.

I would not be surprised to see small shops close as the push goes to more and more online services for better efficiency.

The drive for more tax seems to be coming from two groups - Horse Racing Ireland and Gambling Addiction Groups - who both have the idea that they'll get greater funding from this increased tax take.

It will negatively impact local employment, and may even kill the golden goose for these special interest groups.

[matthewt]

That article has too many big words and terms. (E.g., exchequer, permanent funding mechanism, umbrella-grouping, ring-fence betting) Sounds like the editor is being convoluted. The reason??? They don't see the importance in helping the public understand what is going on. Right?