William Hill disappointed with increase in Ireland’s betting tax

Ireland’ss minister for Finance Brian Lenihan announced today that the Government will double the current 1 per cent tax on bookmakers turnover to 2 per cent, this will net the exchequer an extra €40 million.  The move was condemned by the Irish Bookmakers’ Association who said it will drive small bookmakers out of business.

William Hill Director Of Racing & Public Relations David Hill commented; “We are surprised and disappointed that the Irish Government is increasing betting tax at a time when the man in the street continues to feel less change in his pocket day after day. As a turnover tax, rather than a Gross Profits Tax, which is now the model adopted in the UK and other territories, it will make running large estates of betting shops and particularly an internet or telephone business in Ireland very unattractive. William Hill customers can continue to bet ‘tax free’ because we will absorb the cost on their behalf for the time being. Our initial thoughts are though, that some operators will have to consider passing on the cost to their customers through reduced odds and trading concessions. It may make the ownership of some betting shops in Ireland unsustainable and could lead to redundancies.”

William Hill and other leading bookmakers will not pass on the tax increase to their customers.