A telephone betting service by British bookmakers William Hill, aimed at avoiding paying the British Exchequer tax, is expected to begin operations from an Athlone call centre on Wednesday.
Under the scheme, British punters who phone the firm's telephone betting service in Leeds will be asked if they want reduced-tax betting. Those who do will be routed through the Isle of Man to Athlone where the bet details will be forwarded to a computer in Antigua.
The firm expects to make considerable savings by paying the Irish betting tax of 5 per cent, compared to cumulative taxes and charges of 9 per cent in Britain. The service will not be available to Irish residents.
Almost 100 people have been recruited for the Irish centre.
The British government is planning to introduce measures in its forthcoming Finance Bill to clamp down on firms which try to bypass its tax system. However, a William Hill spokesman said the company believed it had nothing to fear from such measures as its new overseas telephone operation would not be registered in Britain.
The spokesman added that the decision to launch the Irish-based operation followed the failure of the British government to respond positively to its demands for a cut in the betting tax rate. He insisted that the Athlone call centre was a long-term operation.
The William Hill venture follows the decision of its major competitors, Victor Chandler, which last year moved its phonebetting service to Gibraltar. William Hill also plans to launch an Internet-based betting service this week.
If the Athlone call centre venture is successful, industry speculation is rife that other British bookmakers may follow suit and establish operations in the Republic. The State's low betting tax rate and its English-speaking workers make it attractive for services targeting British punters.