Ireland Leaves Betting Tax Untouched While Racing Funding Climbs 3%

Ireland’s horse racing sector is set for a larger state contribution in 2027 after the government increased funding for Horse Racing Ireland (HRI), while opting against any change to the country’s betting tax rate.

Read more Football

The measures, announced as part of Tuesday’s budget, will see HRI’s allocation rise to €81.6m next year as betting duty remains fixed at 2%.

The increase follows a year in which the overall Horse and Greyhound Fund was kept at €99.1m. That total is due to rise to €102m in 2027, providing additional support for both racing industries. As the fund’s largest recipient, HRI will receive 80% of the allocation, with its share increasing from €79.3m, while greyhound racing has been allocated €20.4m.

Minister for Agriculture, Food and the Marine Martin Heydon said an extra €2.9m had been assigned to the fund, adding that the increase would support work linked to welfare and integrity measures. The funding boost comes as HRI prepares for a record 396 fixtures in 2027, although the allocation remains below the body’s own strategic target of €88m for the year.

Alongside the funding announcement, bookmakers avoided any additional tax burden after the government left Ireland’s betting duty unchanged at 2%.

New social impact fund levy still on the cards for next year

While betting operators avoided any increase to Ireland’s betting duty in the latest budget, attention has already turned to the new social impact fund levy set to be introduced by the Gambling Regulatory Authority of Ireland.

Read more NFL

The charge is expected to come into force next year, leaving many retail operators concerned about the combined cost of regulation despite the decision to keep the tax rate at 2%.

The industry has repeatedly pointed to the pressures facing betting shops since the turnover-based duty was doubled from 1% to 2% in 2019. In its budget submission, the Irish Bookmakers Association said hundreds of shops have closed in the years since, with around 1,000 retail jobs lost across the sector.

IBA chair Sharon Byrne welcomed the decision to leave the tax unchanged, arguing that operators are already facing uncertainty over the level at which the new levy will be set. She also noted that licensing costs linked to the new regulator are expected to create an additional financial burden for bookmakers, particularly at a time when closures continue across the retail market.

The challenges facing the high street remain significant. The number of betting shops operating in Ireland has fallen from 1,385 in 2008 to 643 today, with dozens of outlets shutting their doors over the past two years alone. 

The trend was highlighted again last month when Paddy Power revealed plans to close 100 shops across its estate before the end of the year, with nearly half of those expected to be located in Ireland.

Read more PNP Intensifies Operations Against Illegal POGOs and Online Scams