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Rounding out the week comes more news
from the Irish online gambling company Paddy Power, which announced this
week that the new taxes in their home company could have an adverse effect
on the firm’s bottom line, giving a fair heads up that the 750 new jobs
they had intended on might not be possible if they are held responsible to
the new levy. There is still time to hope, however, for as of now, the new
tax laws are still proposals, bills under consideration by the government,
giving some room for not only Paddy Power, but other internet gambling
interests to mount an appropriate opposition.
Paddy Power made a strong statement to the press this week, giving warning that if the bills were to be passed and moved forward, the fiscal strain that they would place on the firm would force PP to rethink their plans for the future, which include an expansion that could result in as many as 750 new jobs over the next three years. The new taxes would extend similar levy rates as are currently applied to land-based casinos to their online casino cousins, as well as telephone betting, effectively expanding the burden on affected companies.
“We don’t have an issue with paying betting taxation,” CEO Patrick Kennedy told the Financial Times this week. “Our issue is if we have to pay it solely because we employ people in Ireland.” The effect would be primarily on Paddy Power, for as ten different companies are active and booming in the Irish internet gambling market, only two of them are based out of the region, and have a physical presence within national borders. It’s a critical point, as the levy is worded in the legislation to apply specifically for Irish jobs, a point of pause given Paddy’s previous plans to expand.
“In its planning over the next three years, Paddy Power expects that 350 of the 750 new jobs would be in Ireland, but there is a genuine risk that if the government introduces a tax that creates an unlevel playing field, those jobs don’t come to Ireland.” Kennedy added.
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