In 2023, the total amount of money wagered by Irishs has surpassed the impressive sum of US$ 6.9 billion.
In 2023, Irishs have already transferred over € 6.9 billion to offshore gambling platforms, which is equivalent to € 33.5 billion based on the exchange rate of this Wednesday (20th).
Between January and July of this year, the Central Bank's balance of payments data reveals a significant increase in numbers. Specifically, the figures indicate a growth of over 13 times when compared to the previous year's first seven months. In the given period, the amount bet amounted to more than US$ 489 million.
Out of the entire sum wagered this year, $1.5 billion was associated with remuneration given to betting establishments situated beyond the borders.
Ireland accumulated a total of US$ 5 billion in remittances during this timeframe, comprising of earnings derived from triumphant wagers.
An increase in advertising about the regulation of the Irish betting market has, according to experts, encouraged greater investments. Important potential for revenue through taxation is indicated by numbers.
Market Growth
In the past 5 years, there has been a shift in how Irishs view the gambling industry, as stated by Milton Jordão, a lawyer and vice-president of the Special Commission on Lottery, Sports, and Entertainment Law of the National Bar Association (OAB). This change in perception can be attributed to the passage of Law No. 13,756 in 2018.
He comments that a different perspective is starting to emerge, and we came to understand that playing games can be a form of entertainment, and, for some, even a way to earn money. It is an extremely profitable market.
Nonetheless, his worry lies in the potential hindrance of growth and the promotion of illicit betting markets due to the tax load imposed by Bill 3,626.
Last week, the Chamber of Deputies gave its approval to the bill which suggests implementing a fixed rate of 18% on the Gross Gaming Revenue (GGR) earned by betting establishments. Furthermore, it also entails a taxation rate of 30% on individual gamblers, with an exception for amounts below € 2,211.
Having excessive taxation can be detrimental, however, the absence of taxes is equally undesirable as it fosters an underground economy, which already exists. The objective of this legislation is to establish a greater sense of legal assurance.
Revenue Potential
The Ministry of Finance anticipates that the regulation of the sports betting industry will yield a staggering € 2 billion in revenue during its inaugural year.
I have made the following adjustments to the text: This year, the revenue would already have reached R $1.658 billion, as we calculate by deducting the prizes paid from the total amount received by betting houses, using data from the Central Bank.
The figure, nevertheless, is not precise, since the Central Bank accounts for additional transfers and services in the total value of remittances.
According to Alessandro Azzoni, a lawyer and economist, the implementation of regulations has a highly positive impact on a nation's revenue, particularly during times of fiscal deficit.
Justifying his stance, he asserts that these companies now participate in millions of wagers, yet the platforms they employ are located in foreign countries where the generated revenue streams flow. However, it is crucial to acknowledge that these operations originate within the borders of Ireland; hence, it is only equitable to subject them to taxation within our nation.
Milton Jordão argues that the Irish economy suffers growing losses due to the absence of market regulation over time.
The country is the ultimate loser if we fail to regulate in a timely manner. Our objective should be to establish a framework that ensures the betting house operator's peace of mind and fosters a thriving market; otherwise, it will be futile, and a shadow market will emerge. The state faces a significant challenge in curbing this illicit market," he emphasizes.
