A report published today assesses the economic impact of a regulated Irish casino gaming sector. The report, commissioned by the Gaming & Leisure Association of Ireland (GLAI) and sponsored by A&L Goodbody Solicitors and Mazars Accountants, concludes that land-based casinos and the online gaming sector have the potential to create around 13,000 jobs and deliver gaming tax of some €280 million by 2020 if appropriate regulatory and fiscal structures are put in place.

DKM Economic Consultants who prepared the report say that a regulated land-based casino industry in the next 12 years could employ over 3,000 people and generate €50 million a year to the Exchequer through gaming and corporation tax, PAYE/PRSI contributions and commercial rates. In the same time frame, if Ireland could attract 5% of the global online gambling sector, employment numbers could be expected to reach an additional 10,000 jobs in the IT & Financial Services sectors and also in support professional services such as Legal, Audit & Accountancy, Taxation, Advertising, and other back office roles, and generate up to €230 million a year for the Exchequer.

The report indicates that a number of leading firms in the on-line sector have established operations in Ireland already, including Canadian company Cryptologic. Discussions with the online industry and a number of Professional Service firms in Dublin indicate that these companies are looking for a stable onshore base with a deep labour pool where they can continue to develop in a secure fiscal and regulatory environment.

Commenting on the findings of the report, the author, Mr. John Lawlor, DKM Economic Consultants said: “As the Government’s own Casino Committee’s report highlighted there is a particular window of opportunity for Ireland at the moment, because the online sector is currently largely based in offshore locations that tend to suffer from limitations in terms of IT infrastructure or specialist skill sets ……According to the industry sources we have consulted, they would prefer to move onshore to more established and larger jurisdictions, but no such jurisdiction has moved to adequately accommodate them as of yet. This window of opportunity is unlikely to remain open in the long run, however, as strong growth in the sector and straitened economic times make them an attractive target.”

Mr David Hickson of GLAI said: “There has been no previous quantitative examination of the size of the casino gaming sector in Ireland, nor the potential for future growth based on international trends. This report establishes some level of an economic benchmark for the debate on regulation….While the Government’s own report clearly indicates the need for regulation of the sector in order to tighten current legislation and ensure consumer protection, DKM’s report indicates there are also sound economic arguments to be considered.”

Joe Kelly, partner in A&L Goodbody and head of the firm's Gaming and Betting Group, said: "In order to comply with Ireland's obligations under EU law, Ireland needs to bring in modern legislation to deal with developments in the industry, in particular in relation to on-line gambling. It has long been our view that a transparent and fully regulated Irish gaming sector can contribute significantly to the Irish economy, both in terms of job creation and returns for the Exchequer.” (E-10.07.08)

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