The Irish government is fed up with losing tax revenue to offshore online casinos. Online gambling is legal and regulated in Ireland, but there are plenty of Irish citizens who visit and play at online casinos based in other countries. Ireland wants a cut of that money.

Last week, Irish Taoiseach Brian Cowen announced a plan to begin taxing online gambling companies that access the Irish market. If his bill is passed, online casinos, bookmakers and any other internet or telephone betting companies would have to obtain a license from Ireland in order to do business with Irish customers.

It sounds like a good idea. If a company is going to do business with people in your country, why shouldn’t they have to be taxed like domestic countries do? However, there is a problem with it. For one thing, there is no law preventing Irish citizens from gambling at online casinos based overseas that do not have the required license. Also, there is no way for the Irish government to prevent their citizens from playing at an offshore online casino that they find via the internet (such as by doing a Google search). They could only prevent that if they decided to act like China and take authoritarian control over the Internet, which is not something I can see the Irish doing.

Therefore, it really only comes down to advertising. Foreign online casinos can only advertise in Ireland if they obtain the license. Without one, they cannot put ads in magazines, on TV, on the radio, on benches and buses, on subways, or anything like that. They will, however, still be able to advertise freely online, since the internet is global and Ireland doesn’t censor it.