Proposed Betting Duty Rise in Ireland Draws Stark Black Market Warning

The betting industry in Ireland has already raised its voice against government plans to increase betting duty, warning that such a move would only strengthen the black market.

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The Irish Bookmakers Association (IBA) has urged officials not to push ahead with the proposal, stressing that higher taxes could lead to more shop closures, job losses, and a shift of customers toward unlicensed operators.

Finance Minister Paschal Donohoe announced the measure in the Dáil Éireann while presenting the 2026 budget last October, confirming that the change would not take effect until 2027. At present, pool betting is taxed at 1%, while both retail and online wagers carry a 2% duty.

According to reports in the Racing Post and other Irish outlets, the government is now considering raising that 2% rate further as part of its wider gambling reforms.

“Black Market is going to capture a large double digit figure of market share soon,” bookies warn

Irish bookmakers have stepped up their opposition to the possible rise warning that the move would hand a major advantage to unlicensed operators. 

Flutter Entertainment privately to Finance Minister Simon Harris last Month, urging him not to raise the tax ahead of the October 6 budget. The Irish Bookmakers Association (IBA) also submitted figures showing how the current system has already squeezed profits. 

“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 said.

The group pointed to closures as evidence of mounting strain, noting that one operator shut 39 shops in May 2026, while another confirmed in September that up to 100 outlets across Britain and Ireland were under review, with around 400 jobs at risk. 

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On a proportionate basis, the industry expects around 40 of those closures to hit Ireland, which would mean more than 80 shops disappearing in a single year.

Industry voices outside the IBA have also shared the same concern. Anthony Kaminskas, founder of AK Bets, argued that higher turnover tax would leave regulated firms with few options: either strip back their sportsbook and focus only on casino, or offer poor prices that drive punters away. 

He warned that “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).” For bookmakers, the message is clear, more tax means worse prices, fewer shops, and a growing illegal market. 

Levy increase still has supporting voices

Not everyone in Ireland’s gambling debate is against higher taxes. Stewart Kenny, co‑founder and former chief executive of Paddy Power, has urged the Minister for Finance to impose a 40 per cent levy on online gaming and casino operators according to the Irish Times.

In his view, these businesses pose a “significant danger,” especially to young men, and provide “no public good whatsoever.” 

Kenny’s letter, co‑signed by several addiction specialists, described online slot machines and casino games as “the crack cocaine of gambling.” His intervention comes as the UK market shows how dominant online casino play has become, with an estimated £84 billion gambled on slot machines alone each year. In the recently released annual report by the UKGC, casino games contributed £5.7 billion to the GGY.

Kenny led Paddy Power from 1988 until 2002, but later resigned from its board in 2016, accusing the company of profiting from gambling addicts online.

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