'Our expectation is that the number of shops will continue to decline' - alarm in Ireland over proposed hike in betting duty

The Irish Bookmakers Association (IBA) fears further shop closures should a recommendation to increase betting duty by 0.5 per cent be acted upon in October's budget, five years after the last hike which the association says resulted in 127 betting shops being shut down.

The mooted rise came from the Tax Strategy Group (TSG) in a report that suggested increasing the betting duty by 0.5 per cent to raise an estimated additional €25 million. The TSG is chaired by the department of finance and its publications are to be considered in the budgetary process but it is not a decision-making body. It recommended a similar increase in betting duty last year which was not introduced.

There was widespread distress among bookmakers in the lead up to last year's budget due to the TSG's proposals and they are set for an anxious wait again given how sensitive the industry is to changes in betting duty due to Ireland being one of the few jurisdictions that apply it as a turnover-based tax.