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New betting tax soon in Ireland

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New betting tax soon in Ireland

Under the new long-awaited law, which will be introduced via the enactment of the Betting (Amendment) Bill 2013, online bookmakers and betting exchanges providing betting services to Irish customers will be required to obtain an Irish licence regardless of whether they are physically present in Ireland or not. They will also have to pay tax on betting transactions with Irish residents. Under the current law, foreign-based bookmakers offering remote services to Irish customers enjoy a relatively tax-free regime.

The rationale of the new betting law in Ireland is to provide for a fair and equal treatment of all bookmakers, both traditional and remote, as well as betting exchanges offering services in Ireland.

The new Irish betting tax shares many similarities with the point-of-consumption (PoC) tax that will be introduced in the UK on 1st November 2014.

The new betting tax is welcome news for the Ireland-based online bookmaker Paddy Power, which generates around 75% of its online profits online in Ireland. 'We have worked closely with the authorities in Ireland on the Betting (Amendment) Bill — ensuring that there is a level playing pitch for all companies who operate in the Irish marketplace irrespective of whether they are based in Ireland or not,' Paddy Power spokesman said.

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