Soc Dems call for 5% betting tax to fund sports and arts

The Social Democrats are calling for an increase in betting tax to 5% to help fund sports and culture initiatives in disadvantaged areas, a move which the Irish Bookmakers Association says would decimate local bookmakers.

Betting duty in Ireland has remained at 2% since 2019 and is levied on operators rather than on bettors' winnings. Officials explored raising the tax to 3% before last year's Budget.

Speaking as his party launched a new sports and culture policy, Social Democrats Children's Spokesperson Aidan Farrelly said: "By raising the betting tax from 2% to 5%, that will unlock the potential to raise in excess of €165 million per year to fund a programme of capital grants in sports clubs in disadvantaged areas and create a €150 Sports and Cultural Activity voucher for all children".

The Kildare North TD said his proposal is fully costed.

""For too long, the arts have suffered chronic underinvestment - we have among the lowest levels of arts funding as a percentage of national income in Europe. Maximising participation levels in sport and recreation is key not only for keeping people active, but also in the fight against obesity, the sustaining of communities, the integration of people from diverse backgrounds, and the promotion of mental well-being", he said.

The Labour Party previously called for the betting tax to rise to 3% with the extra revenue generated to be ringfenced for domestic football facilities and other sports.

However, the betting industry has warned that a tax of 5% would lead to significant job losses.

"A betting duty rate of 5% would decimate local bookmakers and cause significant job cuts in communities across Ireland," said Sharon Byrne, Chairperson of the Irish Bookmakers Association.

"Betting shops are under incredible strain at the moment, as can be seen by the recent closures across all types of licensed betting operators."

Paddy Power and Betfair owner Flutter Entertainment also warned against the impact of an increase.

"Increasing tax on business isn't a free hit. Raising the betting duty could have a significant impact on jobs and investment just as new gambling regulations take effect," a spokesperson said.

Flutter employs 2,800 people in Ireland, across its headquarters in Clonskeagh as well as 200 Paddy Power shops. However, it closed 57 shops across Ireland and the UK in October.

The company also runs Cash4Clubs, which puts £500,000 (€578,000) into grassroots clubs each year across Britain and Ireland, through grants of £2,000 or €2,000 a time.

In Britain, remote gaming duty, paid on online casino betting, rose from 21% to 40% last month.

General betting duty, paid on other forms of sports betting, will remain at 15% in betting shops - but from next year will rise from 15 to 25% online for bets on all sports bar horse-racing.

Flutter has said the rises will likely have an impact of hundreds of millions on its annual earnings, which were around €14 billion last year.