Crucial Budget looms as racing seeks major funding boost

Betting duty: the background

Until 1986 betting duty in Ireland, collected as tax 'paid-on' (added up front to the cost of the bet) with bookmakers, was levied at 20 per cent, and evasion was widespread.

In 1986 the rate was cut to ten per cent and further reductions followed, to five per cent in 1999, two per cent in 2002 and to the current one per cent in 2006. This one per cent is collected from betting companies, recovered in the gross margin, not tax 'paid-on'.