The latest Irish news about the betting market has made bookmakers worry again after the lockdown. The Tax Strategy Group has proposed new taxation for this vertical of the gambling industry.
It has submitted the report, which includes amendments to the current tax assessment for the betting market in Ireland. The main reason for this intention is to bring more profit to the state coffers that is especially important during the crisis caused by the COVID-19 pandemic.
“It wipes out the profitability of betting shops”
However, this proposal won’t have a positive outcome for the bookmaking vertical. Operators have already started to count losses. According to their calculations, this change will mean a total demolition for medium businesses. As for large companies, they will also suffer much from it as the majority of their shops won’t be profitable.
It is supposed that the betting duty will be increased to 2.25%. Now, it amounts to two percent. Changes in the taxation will touch upon tax relief as well. Its amount will be raised to sixty-five thousand euros instead of fifty thousand. The Tax Strategy Group has concluded that innovations will bring the additional eleven million euros, of course, if the betting market will be able to get back to pre-pandemic figures in revenue.
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