🍀 Ireland🇮🇪: gambling operators prepare for a tax increase

🍀 Ireland🇮🇪: gambling operators prepare for a tax increase

The Irish Bookmakers Association (IBA) is urging the government to refrain from increasing the tax burden on the sector.

🍀 Irish media are warning that in 2027 there will be an increase in the current 2% tax on betting and the totalisator tax (from 1% to 2%). The budget is facing greater pressure, and the gambling sector could face a higher tax burden.

🍀 The Irish Bookmakers Association is, unsurprisingly, opposed. Its argument is straightforward: when the betting tax was increased in 2019 (also from 1% to 2%), 222 betting shops closed and around 1,000 jobs were lost.

👉 However, there is a caveat: it has yet to be established that the tax increase itself was directly responsible for the shop closures, as the retail betting sector is also undergoing a broader shift toward online betting and facing rising operating costs.

🔻 Entain announced in April that it would close one-third of its Ladbrokes shops;

🔻 Flutter is considering closing up to 100 Paddy Power shops in Ireland🇮🇪 and the United Kingdom🇬🇧. In response, Paddy Power's co-founder called for a 40% gambling tax.

🍀 The International Betting Association (IBA) supported its Irish counterparts, stating that every additional euro in operator costs would be offset by a reduction in value for customers. This could benefit illegal operators, which are not subject to such payments and to which some customers could turn.

🖋 Context: in July, a new licensing system for remote betting came into force, replacing the laws on totalisator and betting from 1929 and 1931, respectively. All sports betting operators are now required to obtain a B2C Betting Licence and comply with a number of restrictions.

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