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Posted 1/11/11 : Online gambling's free ride is over
The threat to include online gambling companies - referred to as 'remote' gambling entities - in the Irish tax net materialised as the week ended, with the cash-strapped Irish government publishing its proposals.
The provisions are part of the Finance Bill and embrace defined categories of 'remote betting intermediaries' (betting exchanges like Betfair) and 'remote bookmakers' in Ireland such as Paddy Power and Boyle Sports.
Betting exchanges, which allow people to make bets with other customers online, are to be made liable to a "betting intermediary duty" at the rate of 15 percent of the commission they receive from punters in Ireland.
The Finance Minister plans to raise an additional Euro 20 million in yearly tax revenues by extending the existing 1 percent levy on betting turnover in bookmakers to online operators. The regulatory changes outlined in the Finance Bill are to be provided for through separate legislation amending the Betting Act 1931.
Irish internet bookmakers have warned that unreasonable levels of taxation could make them competitively vulnerable in a tough business environment where they face offshore competitors based in low-tax offshore jurisdictions, and that this could result in the relocation of Irish companies and subsequently losses of Irish jobs and income.
The bill makes provision for both annual excise duty of Euro 5 000 and punitive measures to the same value, along with renewal rates based on a sliding scale tied to the operator's annual turnover. The scale starts at turnover under Euro 50 million, which attracts annual duty of Euro 5 000, rising in incremental steps to Euro 100 000 on turnover in excess of Euro 500 million.
The development suggests that a regulatory and licensing system for 'remote' gambling companies is in prospect.
Page 186 at has all the details.

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Gambling News :

Wanajump Launches - #Wanajump Spanish online and land gambling operator Grupo R. Franco appears to be emulating the William Hill group, announcing this week that it is to begin a start-up accelerator program for innovative entrepreneurs, which it has titled Wanajump.

Coral Launches player proposition betting product - Digital Sports Tech, a business-to-business software provider of sports betting solutions, has signed a deal with UK online and land sports betting operator Coral to provide an innovative player proposition betting product.

Oshi online casino now accepts fiat currencies - The Oshi online casino, which started just a year ago as a Bitcoin-denominated operation, has described its expanded activity in a statement this week, noting that in addition to Bitcoin it now accepts fiat currencies and has added new game providers to its roster of suppliers.

New Standards for UK Online Gambling - Online gambling service and technology providers, along with operators and testing agencies will be studying the new gambling software and technical standards proposal published by the UK Gambling Commission following a public consultation.

Pennsylvania Gambling Bill 1887 returned with additions - The interaction between the Pennsylvanian House and the state Senate has become increasingly like watching a game of ping pong as the two political establishments wrestle with online gambling legalization and court-ordered tax fixes in the dying days of the current political season.

UKs Advertising Standards Authority vs Ladbrokes - A Ladbrokes Casino email promo has fallen foul of the UKs Advertising Standards Authority who deemed significant terms and conditions concerning bonusing to be unclear or misleading.

Mybet Earnings Struggle - The statement this week reveals that Mybet continued to be hampered by negative trends from historic quarters, making its original performance estimate "unrealistic".

Tom Horn Awarded Malta Gaming License - Online gambling software provider Tom Horn Gaming has been awarded a Malta Gaming Authority license that permits the company to host and manage Malta-based gaming operators.

Calvin Ayre invests in new Antigua Business Center - Ayre joined with government officials this week in a ground-breaking ceremony for a five-story centre on Antigua which will be home for the venture. The "green" building will be solar powered and provide employee-friendly services like catering, a gym and child care.

Attack of the Zombies Slot - Online gambling games developer Genesis Gaming has unveiled its latest game, with a theme based on a horror story of the undead, exploiting the current trend....and just in time for Halloween.

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