Increased Taxes and Regulated Online Betting Coming to Ireland

Ireland has been attempting without much success for some time now to change the old laws regarding it's gambling industry in the country. Ireland is facing a situation of under funding and falling attendance within their horse racing industry, that is very much like the failing horse racing industry in America.

Revenue is needed to prop up the horse racing industry and in America some states have increased revenues by adding slot machines and other gambling venues to the attractions available at the track. At a recent dinner put on by The Irish Field racing newspaper Irish Prime Minister, Brian Cowen, indicated in his speech that he has a solution for the ailing horse racing industry advocating the taxation of online gambling operations and the introduction of a regulatory licensing system of offshore wagering sites. Cowen said, “Such betting must be brought within the tax net, not just because it will increase revenue, but also because it will mean that those currently not contributing to securing the future of important indigenous industries will now make that contribution.”

Online gambling operators are unsure of the repercussions involved with these sorts of proposals. Those operators who are already in Ireland and providing jobs that contribute to Ireland's overall economic prosperity fear these changes in the tax laws will unfairly target them. Two online gambling operators William Hill and Ladbrokes both moved their home operations to Gibraltar, and out of the UK.

The move was made because of the high tax rate that William Hill and Ladbrokes were paying in the UK and since the move, both companies have seen dramatic increases in profits. With the proposed changes of increased tax levies and the registration of offshore companies in Ireland it is estimated that 90 million euro in extra revenues would be generated helping top up the Irish Horse and Greyhound fund.