Proposed new tax could shut 33% of bookmakers.

sondagefaux

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The Irish Bookmakers Association (IBA) is warning that a proposed new 2% tax on winning bets, which they think is going to be introduced in the budget, could lead to the loss of thousands of jobs:

THOUSANDS of jobs would be lost and a third of betting shops would close if a proposed 2% tax on winning bets is introduced in December’s budget, bookmakers have warned.


Industry and political sources believe that Finance Minister Brian Lenihan is likely to favour the introduction of such a controversial measure given the Government must seek at least €3 billion in cuts to its 2011 budget. It is estimated that such a tax could raise around €60 million a year.

While punters would face a 2% tax on all winning bets, it is anticipated that many betting shop owners would absorb the charge on payouts in order to prevent gamblers switching to online and telephone betting operators based outside Ireland who are not taxed. Irish bookmakers currently pay a 1% duty on turnover.

The Irish Bookmakers’ Association last night expressed concern that a further tax on the betting industry would drive punters to overseas betting services and result in the closure of one-third of existing betting shops in the Republic.

"We believe that 400 of the 1,200 would shut up overnight. It would kill jobs in the industry," said IBA chairwoman Sharon Byrne. The sector employs 6,500 people.
Winnings tax would shut 33% of betting shops | Irish Examiner

Anyone here work in the betting industry or in a bookies? Do you think that the IBA is correct or is it just scaremongering?
 


dapman

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Bookies should be asked to pay their fair share. But not if they have to compete with competition that does not.
What happened to the new betting legislation that was promised last Spring? That was supposed to allow online companies to locate their servers in Ireland, thus paying Irish corporation tax and betting taxes which are a lot smaller then their equivalents elsewhere, but nothing.
This is supposed to be a major tax raising initiative, and yet our lords and masters are too busy clinging on to power by their finger nails to get any new legislation passed.
 

Nemi_

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Gosh, another crucial pillar of the Smart Economy bites the dust.

We've as much chance of making a living out of betting as we have to making a living out of selling each other imported new cars.

I think the real problem is the need to cut the minimum wage and social welfare payment, so that people forced out of these oversupplied activities like betting and car sales can actually find an incentive to taking up whatever employment is available.

If labour is cheap enough, it will find employment.
 

Cael

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Good. These parasites should be banned altogether.
 

hellsbells

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Gosh, another crucial pillar of the Smart Economy bites the dust.

We've as much chance of making a living out of betting as we have to making a living out of selling each other imported new cars.

I think the real problem is the need to cut the minimum wage and social welfare payment, so that people forced out of these oversupplied activities like betting and car sales can actually find an incentive to taking up whatever employment is available.

If labour is cheap enough, it will find employment.
Any jobs in the quangos at min wage ?
 

gijoe

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To say that 1/3rd of shops could close is a load of crap. Currently the tax is 1% of turnover, as circa 85% of turnover goes back out in winnings then this tax is in effect increased from 1 to circa 1.7%. That is not going to close any shop nevermind 1/3rd of them.

Betting shops are under pressure from reduced business in the depression. Construction workers were good gamblers but they have been wiped out. The big chains will have to retrench for this reason alone. Boylesports in particular went expansion mad in the boom. They have 5 shops in Killarney alone and they opened a shop in Dingle, which has a small football, that cost over €100k to fitout. One shop in Killarney has no less than 115 LCD screens and I doubt if it sees 115 customers a week. It was the lunatic expansion in the boom that will close shops - not this levy.
 

the_rebubblican

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I "bet" that's pure hokum. Anybody give me odds on that? A 2% tax closing 33% of bookies? The business must be incredibly fickle so. An out break of flu could close it down.
 

louis bernard

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And of course the Chinese will still continue to gamble. They are the main stay of a lot of bookie shops.
 

borntorum

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Utter rubbish from the bookies. Up to a couple of years ago there was a 2% tax, plus 1% levy, on every bet laid in a bookies shop. Before that it was 9%. Bookies were fine then, they'd be fine again in the future. Plus, most shops are owned and run by big companies like Ladbrokes and Paddy Powers who would easily be able to absorb this proposed small rise
 

truepatriot

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this is a load of codswallop. i can see ivan yates demanding a meeting with lenihan. most of the bookies i know reside in palatial mansions and drive expensive cars. as regards boyle sports their shops are overtly luxurious. just look at paddy powers share price and just look at what stewart kenny is worth. the bookies have this mental blockage that we all owe them a good living. has dixie dunphy been found? i know of a few punters who would love to meet him. tax them to the hilt and there should be a fund set up to help the reduntant punters of ireland. look what j.p. is worth and he a bookie.
 

CookieMonster

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The Irish Bookmakers Association (IBA) is warning that a proposed new 2% tax on winning bets, which they think is going to be introduced in the budget, could lead to the loss of thousands of jobs:



Winnings tax would shut 33% of betting shops | Irish Examiner

Anyone here work in the betting industry or in a bookies? Do you think that the IBA is correct or is it just scaremongering?
I worked in the industry and while I don't know if the 33% is true, it will certainly lead to a lot of closures. It's not only the small independent bookmakers which will be hit, the multiples are being squeezed big time too.

In what was previously seen a a recession proof business we've seen turnover down by, in come cases, greater than 50% over 3-4 years. Costs continue to rise and a lot of the bigger companies are pulling out retail units as soon as their leases are up because they can't justify the rent. If this happens at this moment there will be a serious impact on the industry.

Another point is the cost of implementing such a tax. Most betting offices now used computerised systems, almost exclusively provided by a UK company now called Open Bet Retail. Ireland has, in the past, had a strong betting industry in terms of turnover but on a unit basis it's much smaller than the UK. Normal industry software... and all older machines, are capable of adding a tax on the bet stake, but not on bet winnings. It would be possible, but costly, to reprogram the systems used by the larger bookmaker, but independents on stand alone systems would have to replace what they use or add the additional task of calculating the tax in winnings to their staff's already increased workload.
 


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