503. Deputy Colm Burke asked the Tánaiste and Minister for Finance if he intends legislating for a gross gambling yield tax on top of the 23% VAT rate on gambling products such as online slot machines, in view of the fact that online slot machines are highly addictive and are being marketed heavily in Ireland in particular to young men and vulnerable groups, wherein addiction service have reported increased problem gambling especially from online slot machines. [75671/26]
504. Deputy Colm Burke asked the Tánaiste and Minister for Finance if his Department is aware that as Ireland has one of the lowest tax rates at 23% VAT in Europe on online slot machines, that this low tax rate on highly addictive online slot machines incentivises international gambling companies to entice gamblers from traditional forms of sports betting to the much more addictive and harmful high speed online slot machines, taking into account that addiction service have reported increased problem gambling especially from online slot machines. [75665/26]

Simon Harris, Tánaiste and Minister for Finance: I propose to take Questions Nos. 503 and 504 together.

Far from having one of the lowest standard VAT rates in Europe, as set out in this years VAT Tax Strategy Group Paper, Ireland has the joint fourth highest standard rate of VAT in the EU, at 23%, also having a higher standard VAT rate than the UK.

Betting duty law is set out in Chapter 1 of Part 2 of Finance Act 2002, as amended.  The tax operates as an excise duty and applies to bets placed by persons in the State with a licenced bookmaker (either in-person or by remote means) and on commissions earned by licenced remote betting intermediaries in the State.  Section 64 of Finance Act 2002 defines a ‘bet’ as

“…a transaction involving 2 or more persons, where–

(a) the parties hold differing views regarding the outcome of an event,

(b) the parties agree that depending on the outcome of the event, one or more parties shall pay to the other or others a sum, and

(c) the event upon the outcome of which the transaction depends shall not be the outcome of a game within the meaning of this Act;”

Betting duty is payable on all bets placed within the State with a licensed bookmaker and is charged at 2% of total betting turnover.

Activities such as online cash games in online casinos do not come within the definition of a bet and, therefore, they are outside the scope of excise duty. However, general online casino gaming services (such as virtual slot machines and table games) are subject to VAT at the standard rate of 23%.

In addition, I would like to note that there is currently no harmonised approach to gambling taxation across the European Union. Taxation of betting and gambling activities remains the responsibility of individual Member States, resulting in significant differences in tax rates and tax bases between jurisdictions. In this context, changes to betting duty are considered as part of the annual Budget process, with policy options generally set out in the Tax Strategy Group's General Excise paper.

The deputy is raising the issue of problem gambling and online gaming addiction. The Gambling Regulation Act 2024 introduces, for the first time, a comprehensive licensing and regulatory regime for online casino operators serving the Irish market. Online operators will be required to obtain a licence from the Gambling Regulatory Authority of Ireland, comply with consumer protection and advertising requirements, participate in harm-reduction measures such as the National Gambling Exclusion Register, and contribute to the Social Impact Fund.

The Social Impact Fund has been established to support research, education, public awareness initiatives, and measures aimed at preventing and reducing gambling-related harm. The Fund is financed through contributions from certain licensed gambling operators. The precise contribution amounts are to be determined under the regulatory framework established by the Act and associated regulations.

Moreover, there are a range of practical measures available to assist individuals in reducing their exposure to gambling advertising and content, and in restricting access to gambling websites and gambling-related transactions. Further information on these protection tools can be found on GRAI website: www.grai.ie/gambling-safety/get-support/protection-tools.

Question No. 504 answered with Question No. 503.