Private Members Clubs to fall within the VAT net in Ireland

Ireland of course has no casinos as they are illegal under 1956 legislation but it seems that there might be even fewer before long. If this sounds strange to you don’t worry; there are many casinos dotted around the country but of course they operate as Private Members Clubs which neatly sidesteps the legislation but the trouble is that the recession and the “Revenue” appears to have caught up with them to say nothing of the rise in popularity of online casinos. Irish casino news is reporting the difficulty of several casinos who are suffering falls in trade of over 30% and indeed the well known Silks Casino in Dublin is about to go into receivership due to the lack of customers entering the premises. Most casinos have only been established within the last ten years or so and with the economy not being in such good shape and online casinos becoming more popular they are now suffering declines and more closures could be forthcoming. To add to their woes the Revenue Commissioners has now decided that Private Members Clubs should fall into the VAT net despite the fact that much of the gambling industry including online casinos and bookmakers are exempt. The Revenue considers that 21% VAT should be payable on such things as membership fees, tournament entry fees and even profits from gaming activities. Mr Hickson who is a director of the Gaming and Leisure Association of Ireland considers the move to be discriminatory and will drive a lot of the smaller clubs out of business; state run lotteries are of course also exempt. Whatever happens, the casino market still remains unregulated in Ireland and online casinos will continue to thrive.