Tax increase makes no sense

Sir, Having read last week’s news story Racing and betting groups settle down for budget battle, I thought it would be beneficial to yet again provide a small bookmaker’s contrarian view to the unanimity which seems to exist within all sectors of the thoroughbred industry regarding the topic.

It is inevitable that the Alliance for Racing will only highlight certain perceived injustices in their submission to the Tax Strategy Group. It is probable that they will highlight the differences in tax rates between Ireland and other prominent racing countries. However it is the overall tax take relative to the importance of Irish racing to bookmakers which is, in my view, far more relevant to any debate.

Irish racing currently receives €64 million in the form of a grant from the Government. Bookmakers taking bets from Irish residents pay an annual total of €50 million to the Exchequer. Using the published turnover figures from the Department of Finance it is possible to make a very close estimate of the value of Irish racing to bookmakers.

Approximately 12.5% of the total annual betting turnover of €5 billion is derived from Irish racing. The average gross margin on this turnover is 8% which means that the annual gross profit on Irish racing is €50 million which coincidentally is the same as bookmakers pay in tax.

The staggering reality is that the gross profit on EVERY bet struck in this country on Irish racing would not be sufficient to fund the grant paid to racing. It is scarcely credible that the racing industry could call for an increase in betting tax when their product already receives €14 million more in grant aid than the total gross profit on bets taken on their product.

It is also likely that the submission will make reference to the desire of the Alliance and Horse Racing Ireland that Irish racing be funded in its entirety by bookmakers and will quote UK and French examples to back up their point. However, it is in looking at these neighbouring racing industries that the root cause of the funding problem becomes crystal clear.

The table below illustrates the point:

Irish prize money is almost three times higher per head of population than its French equivalent and over four times higher than our nearest neighbours.

It is surely obvious that bookmakers who take their bets from our relatively small human population cannot fund in its entirety a racing industry which is totally disproportionate in size to our customer base.

The vast majority of the over 500 betting shops which have closed are smaller independents. They have been squeezed out by the combination of the recession, inflated media rights payments which contribute over €20 million annually to racecourses and unfair competition from online operators who paid no betting tax until 2015.

An increase in betting tax will sound the death knell of smaller betting shops. Indeed, based on the financial reality as highlighted above, a reduction in the total betting tax take would be much more reflective of the value of Irish racing to bookmakers. Hopefully the Tax Strategy Group will think the same! - Yours etc.,

BRIAN COLLINS

Bookmaker,

Askeaton,

Co Limerick.

Annoyed over Curragh changes

Sir, - Many years ago there was a Marx Bros film entitled A Day At the Races. That of course was a comedy. Saturday at the Curragh was definitely not!

It was to be expected there would be changes re parking and there were signs up denoting Park A, B, C, et cetera, but that meant nothing to anybody except those who had been provided with badges.

The rest drove on to where they had always parked, only to be told they had to turn back and park in the field they had passed. Did it not occur to anyone to erect a sign telling ordinary racegoers where to park or, more pertinently, where not to park, on the approach road? They left it to the parking attendants to take abuse from justifiably annoyed drivers. Farcical at best.

It seems the ‘them and us’ attitude is still lurking at the Curragh. The regulars who turn up all the time are at the bottom of the list, while a lot of the ‘thems’ only appear on classic days.

As for the mainly inexplicable decision not to close up for a year and get the job done, I wonder what the cost of providing marquees and temporary stands, plus the running costs of the raceday staff for the project’s two-year build will come to? Tradition is great but at what cost? Shambles, I think. - Yours etc.,

LIAM HERON

Newbridge

Co Kildare

Start earlier at Punchestown

Sir - I could not agree more with the sentiments expressed by the letter published in The Irish Field last week which suggested a return to an earlier start time for the Punchestown Festival.

What with the late start and finish to racing it makes for a long and tiring day for most racegoers, especially those who have to travel long distances home to the north and south of Ireland.

I would like to see the meeting started an hour and a half earlier which would have the first race timed at 2.10pm.

From speaking to fellow racegoers, I think that an earlier start would suit everybody much better. - Yours etc.,

DECLAN O’CONNELL

Newbridge

Co Kildare

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