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problem gambling blog

Pre-Budget Submission (Budget 2019)

13/8/2018

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A few weeks ago, we sent our pre-budget submission, in collaboration with The Rutland Centre, to Minister for Finance, Paschal Donohoe, and the members of the Finance Committee.

In it, we detailed the urgent need for statutory funding of problem gambling services in Ireland.  At the time of writing, there is no statutory funding stream for problem gambling research, prevention or treatment.  It's also worth noting that the word 'gambling' doesn't appear once in the HSE's Service Plan.  

The submission urges the Minister for Finance to increase Betting Duty to 2%, from the current 1% rate.  Those of you of a similar age to me (46) will remember when Betting Duty was 20%, then 10%, then 5%, then 2%.  Returning the rate to 2% would bring in an additional €50 million to the exchequer.  This could be used to fund numerous state services, as well as developing a dedicated fund for problem gambling services.  

Here are some of the main points from the submission:
  • There are estimated to be between 28,000 and 40,000 problem gamblers in Ireland. 
  • For every person with a gambling problem, an additional 8-10 people’s lives are negatively affected.
  • Ireland has the highest gambling losses, per resident adult, in Europe – the third highest in the world. 
  • There is currently no statutory funding for problem gambling treatment, prevention or research.
  • The HSE does not include gambling addiction in its 2018 Service Plan.
  • The financial cost to the exchequer of problem gambling could be somewhere between €21.2 million and €98 million.    
  • In 2010, the Institute of Public Health in Ireland stated: “From an economic perspective, evidence suggests that the health and social costs of problem gambling exceed government revenue gained from gambling taxes and businesses”
  • Ireland has the lowest Betting Duty in Europe.  Over the past 15 years, while the gambling industry’s profits have increased dramatically, its tax liability has decreased from 5% to 1%.
  • The effective turnover tax rate for gambling services in the UK is 2.5%.
  • The Government is yet to act on any of its commitments, in relation to problem gambling, in the national policy framework for children & young people, 2014 – 2020 (Better Outcomes Brighter Futures).
  • A minimum increase in Betting Duty of 1% would raise in the region of €50 million Euros, which could be allocated to numerous state-funded services, including problem gambling services. This new funding stream for problem gambling services could be an interim measure, until such time as the Social Fund (outlined in the Gambling Control Bill) is active.   
You can read the full pre-budget submission here.  

If you want to see state funding of problem gambling services in Ireland, please consider contacting your TD over the coming weeks.  Contact details for all TDs are available here.  
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