Ireland Betting Industry Warns of Higher Duty Impact

Ireland’s betting industry has criticised government plans to raise betting duty, warning that higher taxation could encourage customers to move towards the black market.

The Irish Bookmakers Association (IBA) has called on officials to reconsider the proposal, arguing that an increase in betting taxes could result in further shop closures, job losses and greater use of unlicensed operators.

Finance Minister Paschal Donohoe announced the measure in the Dáil Éireann during the presentation of the 2026 budget last October, confirming that the change would not come into effect until 2027. Pool betting is currently subject to a 1% tax, while retail and online bets are taxed at 2%.

Reports from the Racing Post and other Irish media indicate that the government is now considering a further increase to the 2% rate as part of its broader gambling reforms.

Bookmakers warn of growing black-market share

Irish bookmakers have intensified their opposition to the potential tax increase, arguing that additional taxation could give unlicensed operators a significant advantage.

Flutter Entertainment privately contacted Finance Minister Simon Harris last month, asking him not to increase betting tax ahead of the October 6 budget. The IBA has also provided figures intended to demonstrate the financial pressure created by the current tax structure.

The association said: “In 2018, retail bookmakers made a net profit of €87m and paid €28m in betting duty. By 2025, the profit had fallen to €25m, while the duty bill had risen to €45m. Betting duty now costs retail bookmakers more than 180 per cent of their entire net profit.”

The IBA also highlighted shop closures as evidence of the pressure facing the sector. It said one operator closed 39 shops in May 2026, while another confirmed in September that as many as 100 outlets across Britain and Ireland were being reviewed, putting around 400 jobs at risk.

Based on the proportion of the closures expected to affect Ireland, the industry estimates that around 40 shops could close in the country, potentially taking the number of outlets lost in a single year above 80.

Anthony Kaminskas, founder of AK Bets, has similarly warned about the possible consequences of a higher turnover tax. He argued that regulated operators could be left with limited options, including reducing their sportsbook offering and concentrating on casino products, or offering less competitive prices that could push customers away.

“Black Market is going to capture a large double-digit figure of market share soon in Ireland (already has it in the UK and growing exponentially),” he warned.

For bookmakers, the concerns centre on the potential impact of higher taxation on pricing, retail locations and the regulated market.

Support remains for higher gambling taxes

Opposition to an increase is not universal. Stewart Kenny, co-founder and former chief executive of Paddy Power, has called on the Finance Minister to introduce a 40% levy on online gaming and casino operators, according to the Irish Times.

Kenny argued that these businesses pose a “significant danger”, particularly to young men, while providing “no public good whatsoever”.

His letter, which was co-signed by several addiction specialists, referred to online slots and casino games as “the crack cocaine of gambling”.

The intervention comes as the UK market demonstrates the scale of online casino activity, with an estimated £84 billion wagered on slot machines each year. According to the recently released annual report from the UKGC, casino games generated £5.7 billion in GGY.

Kenny headed Paddy Power from 1988 to 2002 and later resigned from the company’s board in 2016, accusing the operator of profiting from gambling addicts online.