Ireland raises pool betting duty amid gambling reform

The Irish government has announced plans to double the pool betting duty from 1 per cent to 2 per cent as part of its broader strategy to prepare for the expansion and modernisation of the country’s betting and gambling sector. The decision, revealed by Minister for Finance Paschal Donohoe during his 2026 budget presentation to the Dáil Éireann, will not come into effect until the 2027 budget, allowing the government and stakeholders sufficient time to consult and plan accordingly.

This adjustment in tax policy is seen as a pre-emptive measure ahead of the implementation of the Irish Gambling Regulation Act, which was enacted in November 2024. The law establishes a new regulatory framework intended to open Ireland’s pool betting market to more competition while ensuring higher standards of consumer protection and industry transparency.

Aligning taxation across betting verticals

The move to increase the pool betting duty is intended to bring the tax rate in line with existing rates applied to both retail and online betting, which currently stand at 2 per cent. By doing so, the government seeks to create parity among operators across different betting formats, reducing the risk of market distortions or incentives to restructure operations in ways that could undermine tax fairness.

Minister Donohoe explained the rationale clearly in his budget statement:

“The new Gambling Regulatory Authority will be responsible for licensing and supervising the betting sector. Pool betting is restricted to just two entities currently, but under the new regime, a wide range of licenceholders may be authorised to engage in pool betting.”

He further added,

“I am concerned that betting operators may be incentivised to modify their business structures to avoid liability to betting duty, so I will legislate in budget 2027 for a separate pool betting duty charge. This will provide time for engagement between my Department and relevant stakeholders on the design and structure of this duty.”

This approach indicates the government’s intent not only to expand the market but also to ensure that it remains equitable, transparent, and fiscally sound.

A new regulatory framework under GRAI

The Gambling Regulatory Authority of Ireland (GRAI), which began operations in March 2025, is central to the government’s plan to reform the gambling sector. The authority has already initiated consultations with potential operators and published licensing guidelines for both Business-to-Consumer (B2C) and Business-to-Business (B2B) companies.

Under the new framework, pool betting will no longer be the exclusive domain of Tote Ireland DAC—which oversees horse racing pools—and Rásaíocht Con Éireann (RCÉ), the governing body for greyhound racing. Instead, a wide array of licensed operators will be permitted to participate in the market once the new system takes effect.

The GRAI’s regulatory framework is designed to promote fair competition, enhance player safety, and reduce risks associated with unregulated gambling. It will introduce strict compliance requirements regarding anti-money laundering (AML) policies, responsible gambling measures, and advertising standards.

The authority expects to open the window for licence applications in the second half of 2025, with the newly regulated market expected to go live in early 2026.

Industry response and potential challenges

The proposed tax increase has already sparked discussions within the Irish racing and gambling sectors. Stakeholders, particularly from Horse Racing Ireland (HRI) and Tote Ireland, have expressed concern about the potential financial implications of the duty rise.

The horse racing industry, in particular, has faced growing financial strain. Smaller racetracks have reported declining revenues due to increased operational costs and reduced media rights income. With many of these venues dependent on the annual levies paid by bookmakers, an increase in pool betting duty could further reduce available funds.

Industry groups have urged the government to maintain a balance between taxation and sustainability. They argue that while higher duties may generate short-term fiscal benefits, they could undermine long-term investment in horse and greyhound racing—both culturally significant sectors in Ireland.

Economic rationale behind the policy

From a fiscal perspective, the decision to raise pool betting duty reflects the government’s goal of ensuring a stable revenue base from gambling-related activities. With the gambling sector undergoing structural transformation, aligning the duty rates simplifies tax administration and prevents tax leakage as operators diversify their offerings under the new regime.

The Ministry of Finance has also cited concerns over potential regulatory arbitrage, where operators might restructure their business models to avoid higher duties applicable to other forms of betting. By harmonising duty rates, the government aims to close such loopholes before they emerge.

Moreover, the additional revenue from the revised pool betting duty is expected to support responsible gambling initiatives, public awareness campaigns, and programs targeting gambling addiction—key components of the GRAI’s social responsibility mandate.

Legal continuity until the new system takes effect

While the Gambling Regulatory Authority prepares to implement the new system, operators are required to maintain compliance with existing laws under the Betting Act 1931 and the Gaming and Lotteries Act 1956.

Until the transition is complete, betting and gaming licence applications continue to be handled by the Revenue Commissioners, while applications for lottery permits and licences remain under the jurisdiction of the District Courts and An Garda Síochána.

This interim arrangement ensures legal continuity and market stability until the new licensing regime is formally launched.

Broader implications for the Irish gambling market

The reform and subsequent tax adjustment represent a broader strategic shift in Ireland’s approach to gambling regulation. Over the past decade, Ireland has sought to move away from a patchwork of outdated statutes toward a comprehensive and modern framework capable of addressing both digital and traditional forms of betting.

The establishment of the GRAI signals a new era of accountability and oversight. By opening the market to multiple licensed operators, the government aims to foster innovation, encourage competition, and reduce the dominance of a few large entities.

For consumers, this could translate into better product variety, improved customer protection, and enhanced transparency regarding betting odds and payouts. For operators, however, it means adapting to stricter regulatory scrutiny and compliance obligations.

Stakeholder engagement and future consultations

Minister Donohoe’s statement highlights a deliberate effort to engage with industry stakeholders before finalising the structure of the new pool betting duty. The Ministry of Finance has confirmed that it will initiate consultations with key stakeholders, including operators, industry associations, and consumer protection advocates, throughout 2026.

These discussions are expected to cover several aspects:

• The methodology for duty calculation under the new framework.
• The impact on smaller operators and racing industry funding.
• Mechanisms to ensure fair competition between existing and new entrants.
• Provisions for responsible gambling contributions and community funding.

Such engagement aims to balance fiscal responsibility with economic sustainability, ensuring that Ireland’s gambling reforms yield benefits across all segments of the market.

Preparing for international participation

With Ireland’s gambling market set to open to a wider pool of operators, international companies have expressed growing interest in entering the jurisdiction. The GRAI’s guidelines for B2C and B2B licensing are designed to accommodate cross-border applicants while maintaining stringent compliance requirements consistent with EU standards.

The expected liberalisation could transform Ireland into a regional hub for regulated betting and gaming, attracting investment, technology partnerships, and employment opportunities. However, experts caution that success will depend on maintaining regulatory clarity and ensuring efficient licence processing timelines.

Conclusion

Ireland’s decision to raise the pool betting duty from 1 per cent to 2 per cent is both a fiscal and regulatory step toward modernising its gambling landscape. By synchronising the duty rate with existing betting channels and preparing the market for broader participation, the government aims to ensure fairness, transparency, and sustainability in the long term.

The transition, overseen by the Gambling Regulatory Authority of Ireland, marks a pivotal phase in the evolution of Ireland’s betting ecosystem. While challenges remain—particularly for the racing sector—the reforms are poised to establish a more competitive, accountable, and socially responsible gambling market for the future.

FAQs

What is pool betting?
Pool betting is a form of wagering where all bets are pooled together, and winnings are distributed among those who selected the winning outcome, after deductions for taxes and fees.

When will the new pool betting duty come into effect?
The duty increase will take effect with Ireland’s 2027 budget, following consultations between the government and industry stakeholders.

Why is the duty being raised from 1% to 2%?
The increase aligns pool betting with the existing duty on retail and online betting, ensuring consistency across all betting formats.

Which body regulates gambling in Ireland?
The Gambling Regulatory Authority of Ireland (GRAI) is responsible for overseeing licensing, compliance, and enforcement within the regulated gambling sector.

Who currently operates pool betting in Ireland?
Currently, Tote Ireland DAC operates horse racing pools, while Rásaíocht Con Éireann (RCÉ) manages greyhound racing pools.

Will new operators be allowed into the pool betting market?
Yes, under the new regulatory framework, a wider range of licensed operators will be permitted to offer pool betting services.

What happens to existing licences before the new system begins?
Existing licences remain valid under the Betting Act 1931 and Gaming and Lotteries Act 1956 until the new system is fully operational.

How will the increased duty impact horse racing?
Industry stakeholders fear it could reduce the funds available for racecourse operations, which rely heavily on bookmaker levies.

What benefits will consumers gain from the new regulatory framework?
Consumers can expect enhanced player protections, responsible gambling measures, and greater transparency across betting platforms.

When is the regulated gambling market expected to launch?
The market is projected to go live in early 2026, following the opening of licence applications in the latter half of 2025.