The Budget move to cut betting tax in Ireland's off-course betting shops from 5 per cent to 2 per cent was greeted with resignation by bookmakers.
The British government's decision earlier this year to abolish their betting tax has led major Irish firms like Paddy Power to establish telephone and internet betting services in the UK.
Bookmakers here had expressed their pre-Budget willingness to pick up the cost of a 1 per cent tax themselves, but the Minister for Finance was not able to cut that much yesterday.
However, Paddy Power's managing director, and betting shops association spokesman, Mr Stewart Kenny, gave the budget move a guarded welcome last night: "This Minister for Finance has been extremely realistic and progressive in supporting the betting industry in Ireland and we welcome his foresight once again. We believe that high tax and betting don't work together as betting is a highly mobile service."
He added that yesterday's move was "good news for the 400,000 small punters in the country and it also guarantees the jobs of those within the industry. Like previous cuts I believe it will be self-financing within a matter of years," he said.
There appears to be no question of bookmakers picking up a two per cent tax, however, on an industry that generates an estimated €1 billion (£790 million) in turnover.
A Paddy Power statement said: "The company will now review its strategy in relation to telephone and internet betting services which were moved to the UK in response to the changed betting environment in Ireland earlier this year. However the company will have to assess whether or not it is viable to subsidise the 2 per cent betting tax for its customers."
