Irish Bookmakers Association warns as Ireland considers gambling tax rise

Ireland is considering whether to increase the existing gambling tax applied to betting as part of preparations for Budget 2027, according to recent reports. The current betting duty is set at 2% for bets placed with licensed bookmakers through retail channels and by remote means. The tax is paid by operators rather than directly by customers.

The possibility of a further increase has prompted renewed discussion about the financial position of Ireland's licensed betting sector. The Irish Bookmakers Association has argued that higher taxation could place additional pressure on betting shops at a time when the retail market is already contracting.

Tax plans remain under consideration

The reported proposal has not been confirmed as a final government decision. Current reporting indicates that the Government is examining an increase to the 2% betting duty ahead of Budget 2027, which is scheduled for 6 October 2026.

Budget preparations are taking place within a broader fiscal framework. Ireland's Summer Economic Statement established an €8.5 billion package for Budget 2027, comprising €7 billion in additional spending capacity and €1.5 billion in tax measures. The eventual allocation of that package remains subject to the final budget process.

The betting sector is already facing another taxation change. The Government announced in Budget 2026 that it would legislate for a separate pool betting duty in Budget 2027 after the Gambling Regulatory Authority of Ireland receives wider responsibility for licensing and supervising betting activity. Industry reporting has indicated that the pool betting rate is expected to increase from 1% to 2%.

Irish Bookmakers Association raises concerns

The Irish Bookmakers Association has submitted its Budget 2027 position to Finance Minister Simon Harris. The association says 222 betting shops have closed since the 2019 increase that doubled betting duty from 1% to 2% and estimates that roughly 1,000 retail jobs were lost during the subsequent period.

Those figures should be understood as the trade body's assessment rather than as evidence that taxation alone caused all of the closures or employment losses. During a 2019 parliamentary discussion, the Department of Finance said it was difficult to isolate the effect of the betting duty increase from other forces affecting the sector. Officials specifically pointed to the growing use of mobile betting and broader consolidation in the market.

The distinction is significant because the retail betting industry has been undergoing structural change for years. Consumers have increasingly moved from physical shops to smartphones and other digital channels. That shift has affected operators across multiple jurisdictions irrespective of changes in tax policy.

The IBA nevertheless argues that taxation has become an increasingly important operating cost. In its latest submission, the association said betting duty had become greater than retail bookmakers' combined net profit based on its figures for 2025. It also said betting shop numbers had fallen substantially compared with earlier years. These figures are presented by the IBA as part of its case against a further increase.

The trade body said:

“Every euro of additional cost on a licensed operator has to be recovered somewhere, usually through reduced odds and reduced value for customers. Unlicensed operators recover nothing, because they pay no duty, no levy and no compliance cost and they offer none of the consumer protections that licensed operators are required to provide.”

Betting shop closures add pressure

The tax discussion comes as several major operators are reducing or reviewing their physical retail estates. Entain confirmed plans in March 2026 to close 39 Ladbrokes shops in the Republic of Ireland with more than 200 jobs placed at risk subject to consultation. The company and its Ladbrokes brand cited ongoing cost pressures alongside changes in the market.

The closure decision was reported on 30 March 2026, making the original reference to an April announcement imprecise. Entain identifies Ladbrokes as one of its UK and Ireland brands.

Flutter Entertainment has also been reviewing its retail estate. In September 2026, Paddy Power was reported to be considering the closure of up to 100 shops across the UK and Ireland with around 400 jobs potentially affected. The review followed earlier closures in Ireland.

These decisions cannot automatically be attributed to Irish gambling tax policy. The companies have also faced broader cost pressures and a long-term migration towards online betting. That qualification is important when assessing the likely consequences of any future change to the Irish tax regime.

Anthony Kaminskas highlights possible market effects

Anthony Kaminskas, founder of Dublin-headquartered AK BETS, has also commented on the tax debate. Public reporting of his remarks indicates that he believes a further increase in turnover-based taxation could leave licensed operators with difficult commercial choices.

His argument is that operators could respond by reducing the availability of sports betting products, offering less competitive prices or introducing an additional charge associated with a wager. His example suggested that a €100 stake could potentially cost the customer €105 if the operator attempted to recover the additional burden directly.

Kaminskas has also warned that a widening price difference between licensed and unlicensed services could make illegal alternatives more attractive to some customers. This remains an industry warning rather than a proven forecast of how Irish consumers would respond to a future tax change.

Stewart Kenny presents another view

The public debate also includes a contrasting position from Stewart Kenny, one of the co-founders and a former chief executive of Paddy Power. The Irish Times reported in September 2026 that Kenny had called for a 40% tax on online betting and casino revenue in Ireland.

Kenny's position illustrates that views within the broader Irish betting sector are not uniform. While the IBA and current operators have focused on the potential impact of additional turnover taxation, Kenny has argued for a significantly higher tax burden on online gaming and casino activity.

His comments also place greater emphasis on the policy question surrounding online gambling rather than only the commercial cost faced by retail bookmakers.

Regulation is changing at the same time

The tax debate is unfolding alongside a major regulatory transition. The Gambling Regulatory Authority of Ireland began accepting applications for in-person betting, remote betting and remote betting intermediary licences in February 2026 under the Gambling Regulation Act 2024.

The new framework introduces a more comprehensive system for licensing, compliance and enforcement. The legislation provides for the establishment of the GRAI together with licensing requirements and a Social Impact Fund funded through contributions from relevant licensees.

For operators, this means taxation is only one component of the evolving cost base. Licence fees, compliance requirements, reporting obligations and other regulatory responsibilities are also becoming part of the operating environment.

The timing of any gambling tax increase could therefore become an important issue for businesses assessing the combined effect of taxation and regulation. The IBA has argued that the market should first have time to absorb the new regulatory framework before another significant financial burden is imposed.

The wider policy question

For policymakers, the issue involves more than the potential yield from a higher duty. Any change would also need to be considered against the number of licensed businesses operating in Ireland, employment levels, consumer protection and the movement of betting activity between retail, online and unlicensed channels.

Revenue data confirms that betting duty applies across traditional and remote licensed betting. The State also collects separate betting intermediary duty on commissions earned by licensed remote betting intermediaries.

The challenge is determining how much additional revenue could realistically be generated without creating unintended effects elsewhere in the market. Because the proposed increase has not yet been formally enacted, its eventual rate, structure and effective date remain matters for the Budget 2027 process.

Conclusion

Ireland's gambling tax debate is entering a closely watched stage as the Government prepares Budget 2027. The current 2% betting duty remains in place while reports indicate that ministers are considering whether it should be increased. At the same time, a separate pool betting duty is already part of the planned 2027 legislative programme.

The Irish Bookmakers Association has placed shop closures, employment and competition at the centre of its argument against higher taxation. Recent developments involving Ladbrokes and Paddy Power demonstrate that Ireland's retail betting sector is already undergoing substantial change, although those corporate decisions cannot be attributed solely to taxation.

The final policy decision will therefore need to be assessed in the context of Ireland's new gambling regulatory system, changing consumer behaviour and the Government's wider budgetary objectives. Until Budget 2027 is formally presented, any proposed increase to betting duty should be treated as under consideration rather than as settled law.

FAQs

What is Ireland's current gambling tax on betting?
Ireland currently applies a 2% Betting Duty to bets placed with licensed bookmakers through traditional retail channels and remote means. The duty is paid by operators rather than directly by customers.

Is Ireland planning to increase betting duty?
Reports indicate that the Government is considering increasing the existing 2% betting duty ahead of Budget 2027. No final increase has been enacted at the time of writing.

When will Ireland announce Budget 2027?
Budget 2027 is scheduled to be presented on 6 October 2026. Tax measures including any changes affecting betting will be addressed through the budget process.

Who pays betting duty in Ireland?
Betting duty is paid by licensed operators. It applies to qualifying bets placed through traditional bookmakers and remote bookmakers operating within the Irish market.

What does the Irish Bookmakers Association say about higher tax?
The Irish Bookmakers Association has argued that a higher duty could increase pressure on retail betting businesses and contribute to further closures or job losses. These are the association's representations to government rather than confirmed future outcomes.

Did betting duty rise from 1% to 2% in 2019?
Yes. The rate was increased from 1% to 2% under Budget 2019 with the change taking effect from 1 January 2019.

How many betting shops have closed according to the IBA?
The IBA says 222 shops have closed since the 2019 duty increase and estimates that roughly 1,000 retail jobs were lost during that period. The association also recognises wider structural changes in the sector.

Why are betting shops closing in Ireland?
Betting shop closures have been associated with a combination of factors including rising operating costs, changes in customer behaviour and the migration of betting activity from physical locations to online services.

What did Stewart Kenny propose?
Stewart Kenny, a co-founder and former chief executive of Paddy Power, was reported in September 2026 as calling for a 40% tax on online betting and casino revenue in Ireland.

What role does the Gambling Regulatory Authority of Ireland have?
The GRAI is Ireland's gambling regulator under the Gambling Regulation Act 2024. It oversees licensing and regulatory functions for betting and other gambling activities under the new framework.