The minister for justice in Ireland, Alan Shatter, has announced this week new gambling laws which will be scheduled for early next year. The details will include online gambling operators being subject to tax and a cap being laced on the size and number of casinos.

The new legislation will look to modernise betting laws that date back to 1931 and 1956 media reports suggest.

"The shortcomings in the current law, for example, the absence of any regulation of online gambling, are exposing young people and other vulnerable persons to unacceptable risks," the minister added in a statement.

"The Exchequer is also being short-changed because of the absence of a taxation regime for online and other forms of remote gambling, he added."

One of the biggest online gambling operators, Paddy Power, has based its online operations in the Isle of Man which has meant that it currently pays a significantly less amount in taxes. The company has stated that while its online revenues are growing rapidly it would be happy to pay extra taxes as long as they were fair.

A spokesman for the company added: "It's the policing of the legislation that is the most important thing. Irish and international players need to be taxed equally,"

The new laws will also give the justice minister supervisory, inspection and enforcement powers over arcades and betting shops. At the moment licensing and supervision is divided between the finance minister and justice minister.

Details of the level of taxation have not been revealed, however there is suggestions that it will include a levy to support problem gamblers. The gambling industry in the UK is currently being consulted over an overhaul for the UK tax system. Industry experts suggest that a new tax system which will include online operators is likely to be implemented during the back end of 2012.