Review of tax rate hike gives bookmakers lifeline as gross profits tax proposed

A gross profits tax of ten per cent on retail and 20 per cent online could generate €25m more in actual revenue for the exchequer, the Irish Bookmakers Association is hoping to convince minister for finance Paschal Donohoe during a first-quarter review of the decision to double the rate of betting turnover tax to two per cent.

The bookmaking industry had predicted over 300 shop closures and 1,500 job losses as a result of the increase that was unveiled in the October budget.

Some estimates predict further ancillary job losses, and, following an IBA-commissioned report that was prepared by Anthony Foley – Emeritus Associate Professor of Economics at Dublin City University – persistent lobbying from TDs and threats from bookmakers to withdraw sponsorship for racing, Donohoe has agreed to review the rate.