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Irish Gambling Initial taxes will raise Euro 50

Saturday May 12, 2012 :  ONLINE GAMBLING GOOD FOR THE IRISH TAXMAN
 
Initial taxes will raise Euro 50 million for cash-strapped government
 
Ireland's politicians are gearing up to pass a bill before the summer recess of parliament that will impose a tax of 1 percent of turnover on internet gambling companies handling Irish bets, and more on betting exchanges reports the Irish Examiner.
 
Early estimates from a private study are that in its first year of application the tax will be paid by 77 percent of operators, delivering around Euro 50 million to the fiscus.
 
Companies like Paddy Power, Boyle Sports, William Hill and Ladbrokes will be among the reputable, well established and therefore easiest targeted betting companies, whilst a special 15 percent tax on gross profit has been devised for betting exchanges like Betdaq and Betfair.
 
"Some of the larger mainstream operators have welcomed the tax initiative, but are concerned about the government’s ability to create a level playing field and succeed in taxing all companies who generate revenue from Irish customers via their online offerings," the newspaper reports.
 
Research commissioned by Betfair and carried out by professional services independent PricewaterhouseCoopers has estimated that the taxes proposed by the government would absorb 77 percent of the market between 2013 to 2016 and net Euro 49.8 million in tax revenues for the Irish taxman.
 
PwC found that the more punitive the tax, the less effective it is likely to be, pointing out that a tax rate of 2 percent on turnover and 20 percent on gross profits for betting exchanges would likely absorb less of the market next year (only 56 percent) and result in a smaller tax benefit to the state of Euro 43.8 million.
 
Ladbrokes recently said that it wanted a standard 7.5 percent gross profit tax for both bookmakers and exchanges, while Betfair has expressed satisfaction with the current proposals, but would rather see the entire industry taxed on a gross profit basis.

Analysts estimate that the 1 percent turnover tax could reduce annual operating profits of Paddy Power to the tune of Euro 6 million to Euro 7 million, and the 15 percent gross profit tax may take GBP 1.5 million a year out of the Irish profits of companies like Betfair.

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Gambling News :

Amaya FY2016 Trading Update - The Montreal-based Amaya online gambling group has issued a trading update covering FY 2016 and improving its forecast revenue and earnings numbers.

Another Mega Fortune Dreams jackpot for Euro 3.5 million - In a statement Friday NetEnt advised that the lucky player is a 62-year-old woman from central Finland who won the seven-figure sum from a Euro 1 stake.

Stanleybet has filed a legal action against the government of Cyprus - Bookmaking firm Stanleybet has filed a legal action against the government of Cyprus, claiming Euro 12.5 million as compensation for what it claims is loss of profits and opportunities, prejudice to image and business reputation and legal costs.

LeoVegas To Sponsor Leicester Tigers - The agreement includes official partner accreditation, media space at Welford Road stadium and matchday tickets and VIP hospitality as well as two pitchside perimeter boards from the 2017/18 season and one for duration of the 2016/17 season.

Optima Information Services iShop - Industry visitors to the recent TVC Bookmakers Trade Fair in Solihull, UK were much taken by Spanish betting technology firm Optima Information Services' iShop product, and the company went on to win the SBC Best Retail Betting Product award with it last month.

Golden Nugget Las Vegas Launches New Betting App - Golden Nugget Las Vegas has unveiled a sports wagering app offering Nevada punters the comfort and convenience of being able to wager from anywhere in the state.

CAGAYAN CHIEF MOVES TO REASSURE LICENSEES - Apparently $4 million is going into improvements of the Authority’s data centre in the Freeport at Cagayan, whilst another $3 million has been earmarked for an upgrade to data infrastructure located outside the Freeport.

New Massachusetts Online Gambling Bill - It seems that every two years (give or take a few months) Massachusetts state Senator Bruce Tarr flights an online gambling legalization bill in the state Senate.

Las Vegas Sands Fined for foreign bribery allegations - #lasvegassands Las Vegas Sands, the land casino company owned by multi-billionaire US mogul Sheldon Adelson, has again had to cough up a stiff penalty for non-compliance with the law.

Libratus AI Program Destroying Human Poker Opponents - #Libratus With 40,340 hands played (about a third of the 120,000 planned) Dong Kim is down $29,506, whilst Jimmy Chou ($113,7728), Daniel McAuley ($141,877) and Jason Les ($186,489) are all carrying losses.

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