The Irish Betting Amendment Bill was recently submitted to the European Commission (EU), and is expected go into effect by the end of the year. It takes and average of 90 days for Bills to be confirmed and a bit longer to implement.
The proposed amendments would require licensed casinos to pay a 1% tax on all revenues and a 15% tax on all bets. What is important to keep in mind is that Ireland allows casinos outside of the country to acquire licensing so casinos that operate in multiple countries around the world will have different tax obligations for each country.
While the tax amendments and regulatory licensing are the most prominent proposed amendments, the Bill would also allow brick and mortar casinos to extend their operation hours. Currently the Irish gambling industry generates €1.6bn annually, and the proposed tax changes are expected to generate nearly €16m in new tax revenue each year.
Part of the new money generated will be used to fund a regulatory committee that will ensure compliance with the new provisions on the Bill. Efforts will also need to be made to identify illegal online casinos, and provide consumer protection.
Ireland will most likely take the lead from countries that have already implemented such regulatory measures. While Ireland is looking forward to the significant increase in annual tax revenue, many online casinos are not pleased about the steep taxes they will now be required to pay.
But some believe the measures proposed in Ireland could establish a viable framework that the U.S. could adopt at a federal level with regard to taxing online gambling companies and the practice of online gambling.
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