PROFESSIONALS involved in the treatment of gambling addicts have asked the Government to increase betting tax form 1% to 1.1%, with the extra revenue ring-fenced to help problem gamblers.

The racing industry is also asking the Government to raise betting tax in the forthcoming Budget while the off-course betting industry says any further tax increases will lead to further betting shop closures.

In a letter published by The Irish Times this week, Barry Grant of Problem Gambling Ireland said: “The Department of Finance recently held a review of betting duty. Betting duty in Ireland is among the lowest in the world, at 1% of gambling industry turnover. The equivalent turnover rate in the UK is roughly 1.5%.

“In our submission to the Department of Finance, we proposed that the betting duty be increased to 1.1%, with the additional funds ring-fenced for problem gambling services. While we are aware that Government is generally not in favour of ring-fencing funds, a precedent has been set in relation to betting duty, as the entire tax-take from this duty is ring-fenced for the Horse Racing & Greyhound Fund.

“Betting duty receipts amounted to approximately €50 million in 2016. This €50 million, plus an additional €30 million, was allocated to the Horse Racing & Greyhound Fund in 2017 – and yet zero funds were allocated to addressing the harm caused by problem gambling.”

The Department’s review of betting duty was referred to this week by Horse Racing Ireland chief executive Brian Kavanagh as one of several significant “off the track” developments of the past six months to affect the industry.

“The long-awaited demolition and redevelopment of the Curragh stands commenced in March, while the Department of Finance Tax Strategy Group has initiated a formal review of Betting Duty in Ireland. Senior management changes took place in Horse Racing Ireland with Jonathan Mullin and John Osborne both taking up new positions.”

On the subject of betting duty, he added: “HRI believes that the [Horse & Greyhound Racing] Fund can be fully financed from betting duty and has made a submission to the Tax Strategy Group on this matter.”

All of these developments are overshadowed by the threat posed to the racing and breeding industry by Brexit, Kavanagh said. “Brexit poses huge challenges for our business which is almost totally integrated with Britain. We are working jointly with our stakeholders and the Irish Government, as well as our British and French colleagues, to ensure that our mutual concerns are fully taken into account during the Brexit negotiations.”