The future of the Irish gaming industry could be under threat following an increase in VAT on gross gaming revenue, the Gaming and Leisure Association of Ireland has warned.
Speaking to InterGaming, GLAI director David Hickson said the move could have a dramatic impact upon the country’s gaming clubs.
"While the casino sector in Ireland four years on still awaits government proposals to regulate the sector, the recent decision by the Revenue Commissioners to impose VAT at 21 per cent on GGR places the commercial viability of the sector in jeopardy, as a tax of this magnitude is completely inappropriate to the size and scale of the sector," he said.
Last month, InterGaming reported that the Irish government’s plan to draft new gaming legislation has been put back to later in the year.
The industry operates by making use of a loophole in the current legislation, which dates back to 1956, allowing members’ clubs to operate certain casino games.
The industry had hoped that the Minister for Justice would be discussing proposals for new regulations and the possibility of larger casinos. However, given the economic climate, this no longer appears to be a key concern for the government.
Hickson said that the association is committed to pursuing further legislative developments in an effort to help preserve the industry.
"The GLAI will continue to engage with decision makers to try and secure its members’ long-term viability," he added.
