Ireland’s agriculture minister wants to raise the tax on betting turnover to 2 percent from the current rate of 1 percent.

Simon Coveney, TD for Cork South Central and agriculture minister for the Fine Gael/Labor government, is in favor of the tax hike to support racing and put less of a burden on the nation’s treasury.

Last year, the government gave €28 million to support racing, down from €31 million in 2009. The gaming industry contributed taxes of €31 million, down from a high of €60 million in the 1990s.

Coveney told the Sunday Business Post, “I’m determined that we put sufficient revenue from betting tax into covering the entire fund of the horse-racing industry.”

Online gaming operators are also ready to be targeted.

“I consider the 1 percent rate to be low and I think it could be increased to help the exchequer and the industry. But I am also aware of the concerns of bookmakers.”

Apparently not. Irish Bookmakers Association spokeswoman Sharon Byrne told GamblingCompliance that the tax increase would be “illogical.”

“It’s a very big worry that he has come out and said this,” Byrne said. “But he’s a new minister and I think when he looks at the figures he will realize that another 1 percent is not in the industry. Another 1 percent will certainly close every independent bookmaker in the country.”

Separately, David Hickson, director of the Gaming and Leisure Association of Ireland, said the government is hoping to make plans for general gaming regulation reform public by this summer.

The move to modernize Irish gaming law was sidetracked by the recent change in government following elections in February.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.