Ireland to Adopt New Online Gambling Tax System

May 13th, 2012 by Michael Mills

Ireland has indicated that it will pass a new legislation during the next couple of months that will impose a new taxation regime of online gambling brands operating in the country. The new tax will benefit both the state and the operators.

In order to acquire more tax revenue, the Irish government intends to adopt a new legislation that will impose a tax rate of 1% on turnover on online gambling companies that provide sports betting services to Irish players.

The Government estimates that if 77% of the companies that provide services in Ireland agree to pay the tax then the state will be able to generate around 50 million Euros of tax revenues within a year.

Some of the biggest companies that will for sure seek licensing and agree paying the imposed tax will be renowned names such as William Hill, Ladbrokes, Paddy Power and others. These companies are already well-established in Ireland and will not risk to be blacklisted for not paying taxes.

The 1% tax on turnover is only valid for ventures offering direct betting services. Betting exchanges such as Betfair will have to pay a special 15% tax on profits. Both the tax on profits and turnover tax was well-received by operators.

A recent study commissioned by Betfair points out that the proposed tax rate of 1% on turnover and 15% of gross profits is the most optimal solution for both the state and the operators. The study pointed out that if the tax rate would be increased even with 1%, the state would generate less tax revenues.

Ladbrokes, while supporting the current proposal, has indicated that in its view a default tax rate of 7.5% on gross profits might have been a better solution. Betfair, on the other hand, support the current proposal.

This new tax system would make Ireland one of the countries with the lowest online gambling taxes in Europe. A low online gambling tax usually means that more companies will be willing to seek licensing which would enhance player security and generate more tax revenues for the state.

Michael Mills

US Anti-Online Gambling Politicians Soften their Discourse


US Senator Lindsey Graham and Representative Jason Chaffetz claim that their recent attempt to ban online gambling is meant to be a "temporary" measure only.

Michael Mills

UK Media Launches Negative Campaign Against Playtech's Teddy Sagi


The UK media launched a massive negative campaign against casino tech billionaire Teddy Sagi in order to discredit UK online and terrestrial gambling operators.

Michael Mills

Gambling Company Unibet Decides to Leave Russian Gaming Market

April 18th

Online gambling and betting giant Unibet becomes the latest gambling company to leave the Russian online gambling market due to fears of ISP blocking and government crackdowns.

Michael Mills Shareholder Jason Ader to Appoint Four New Directors

April 18th shareholder jason Ader requested the company's upper management to appoint four new Board of Directors members. The four new Directors will be nominated by Ader himself.

Michael Mills

Czech Government Considers Drafting New Online Gambling Law

April 17th

Czech government members are considering the implementation of a law that would legalize online gambling in the country and require legal casino sites to apply for licenses and pay taxes.