Betting in all of its forms has always been a major part of Irish life. With so many different ways to engage in the practice, it of course has a real impact on the economy of the country. How important is betting to the economy, and what do upcoming changes mean for the industry?
The History Of Irish Betting
Betting in one form or another has always been a part of the Irish culture. While dice games were crucial towards Celtic rituals, card games came to the country after the invasion of King Henry II. At this point, horse racing started to really pick up in popularity, and has become a mainstay in betting in Ireland to this day.
In the 17th century, England colonized Ireland and its government sought to control gambling. That allowed for the government to tax gambling, and potentially bring in more money.
In 1926, betting shops were finally legalized, making it much easier for Irish people to make bets. Before then, they would have to bet on horse races using a commission agent, so the introduction of legal betting shops created a new social experience that many took advantage of. Again, that legalization lead to more income being made through the betting industry, and therefore bolstering the economy.
Betting shops remained popular even after the Betting Act of 1931, which aimed to protect those under 18 and improve the integrity of the sports that were being better on.
The Introduction Of Online Gambling
With the rise of the internet, more and more services were available to people all over the world, including those in Ireland. In 2015, online gambling became legal in Ireland, and soon there was a massive boom in gambling sites being made available.
As there were so many sites launched, it gave potential punters more choice as to where they placed their bets. Many brands created online betting sites like BoyleSports and Ladbrokes, who also historically hand land based outlets. The industry of online setting shows no sign of slowing down either, with the industry estimated to be worth around 220 million EUR on its own.
Of course, with that profit comes the taxation that comes with it. That has led to more tax money being fed into the government from online gambling, having an overall positive impact on the Irish economy.
Modern Betting In Ireland
Currently, betting has never been more popular than it is right now. The market overall is estimated to be worth about 1.1 billion EUR per year. Around 65 million EUR of this comes from casinos, 134 million EUR comes from gaming machines, 8 million EUR comes from bingo, 310 million EUR from lotteries, and 315 million EUR comes from land based betting. While these are all estimates, you can see just how much comes into the economy through betting in general
With so much money coming through the industry, of course taxation on those revenues will boost the economy. In the near future, there are current plans by the government to change the way that the gambling industry is taxed. They are now looking to increase taxation the industry, which is something that gambling operators are becoming worried about.
This comes on the heels of the increase in online gambling. With the popularity of online betting taking a sharp increase, betting profits are now going more towards operators than to any land-based gambling premises. Because of this, some operators are becoming worried that with extra taxation, even more emphasis will be put on online gambling, and potentially lead to the loss of jobs.
Overall though, it is thought that increased taxation on betting could potentially double revenue that is brought in through it. That is in addition to the increase on exchange revenues, which has increased from 15% to to 20%. It is thought that with these increases there will be a 40 million EUR generated for the Irish economy.
Increased Taxation And Problem Gambling
One of the reasons why increased taxation is being proposed in Ireland, is because there is a need to tackle problem gambling. Currently it it is estimated that one in 30 people in Ireland are struggling with problem gambling. In a study carried out in Ireland, it was seen that the average monthly problem gambling spend per person is at 1,000 EUR.
With this becoming more of an issue, the increased taxation rates for gambling in Ireland is proposed in part to tackle this issue. The revenue would be put towards treatment for those struggling with these issues. Of course, it is argued that in this instance, Ireland wouldn’t be seeing as much economic growth as expected when taxes are used in this way.
Betting has always been an Irish pastime, and has always played an important part in the country’s economy. Even with new proposals being made towards taxation of the industry, this shouldn’t be changing any time soon.
Disclaimer:
- As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman and Sikkim, prohibit gambling
- Land-based casinos are legalized, with certain guidelines, in Goa and Daman, as per the Goa, Daman and Diu Public Gambling Act 1976
- Land-based casinos, Online gambling and E-gaming (games of chance) are legalized in Sikkim under the Sikkim Online Gaming (Regulation) Rules 2009
- Only some Indian states have legalized online/regular lotteries as per and subject to the conditions laid down by state laws. Kindly refer to the same here
- Horse racing and betting on horse racing, including online betting, is permitted only in a licensed premise in select states. Kindly refer to the 1996 Judgement by the Supreme Court Of India here and for more information
- This article does not endorse or express the views of Qrius and/or any of its staff.