Irish independent bookie says betting shop closures are likely
News on 22 Nov 2018
News on 22 Nov 2018
One of Ireland’s biggest independent bookies, Tully Bookmakers, warned this week that it will likely have to shutter 18 retail betting shops once the new and increased betting tax in Ireland is implemented.
Such a move would jeopardise around 70 jobs, probably soon after Christmas, director Paul Tully told local media,
Tully revealed that he has written to the Competition and Consumer Protection Commission claiming that the tax increase will result in a lessening of competition in the betting sector, and has asked the Commission to raise the matter with the Department of Finance.
The betting duty will rise from percent to 2 percent, but betting businesses have wafer thin margins Tully said, noting that the tax rate is based on turnover and not GGR, and that the increased tax will “wipe out 90 percent of the independents”. Bookmakers have been campaigning for a 10 percent gross profit tax on retail operations.
Tully claimed that even the larger betting groups like Boylesports, Ladbrokes and Paddy Power Betfair will probably have to review the viability of some of their shops once the increased tax is in place.
Last week a Ladbrokes Ireland exec warned that the rise in taxation has triggered plans to shutter racecourse betting venues (see previous report)
Tully is not the only betting manager expressing concern; Thomas Byrne, the managing director of Bruce Betting, said that he will also have to decide whether four of the firm’s 18 outlets will be able to continue trading after the tax hike comes into effect.
He said that the company paid more than five times in tax last year than it made in profits.
“It just doesn’t compute that you put an entire industry on the brink at the stroke of a pen,” said Byrne, who added that to compensate for the tax increase he will have to generate a 15 percent growth next year and make a 12 percent gross margin.
“In the next 12 months, I can see hundreds of shops closing,” he said, observing that his betting shops are probably better positioned to survive than some rivals due to its business model that includes providing odds to other independents and an online presence..
