Online Gambling in Ireland: The Lowdown
While some would become green of envy when they hear about the current taxes for gambling operations on the emerald island that is Ireland, those operating on the Irish gambling market look at it somewhat differently. A 1% tax might sound like a dream, and when the goal is to raise it to 2% one could truly wonder what the fuss is all about. The truth is that this planned increase in taxes on gambling, online and offline, could bring some of the gambling completely off the market. Even the big brand names like Paddy Power and William Hill are not immune to the expected change…
Casino Gaming in Ireland
To begin with one must understand that Ireland has pretty tough laws when it comes to the gambling. The local casinos, online and offline, have had a hard time making any profits as it is, despite the low tax of 1%. Due to the strict gambling laws on Ireland, many players choose to play in casinos that are located elsewhere in order to avoid problems with fines and legal disputes. An increase with another 1 percent might completely knock the Irish gaming providers out which would defeat the purpose of the raise to begin with.
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The purpose of the new gambling tax in Ireland
To begin with the focus was not so much on the online casino providers, and the increase of the tax was seen as a smart way to boost the Irish horse and hound racing industries since the revenues from the new tax was meant to go into these areas. While this might actually in some ways be good news for horse racing trainers like Gordon Elliott, most seem to agree that the gambling aspect of his and other gambling related activities will be hurt by the new law. For Paddy Power and William Hill the purpose of the tax increase is easy to understand, but on a weak market it might just lead to the leading gambling agencies moving elsewhere to stay alive.
Supporters of an Increased Gambling Tax
So who are the supporters of this new gambling tax in Ireland? Well, surprise, surprise, politicians like Simon Coveney who is the Minister of Agriculture see this tax increase as a great solution for the struggling Irish economy. Animal right groups are happy supporters of the change, hoping that it will have a good influence and aid the agriculture of the country. Their optimism is not completely unfounded, but many financial analysts seem to agree that in the long run this raise of tax will only lead to reduced incomes. This due to the layoffs it will lead to when casinos shut down and gambling operations move from Ireland to better markets.