Ireland Considers Raising 2% Betting Duty as Operators Cite Black Market Risks
Ireland is weighing an increase to its 2% betting duty to fund €7bn spending and €1.5bn tax cuts in Budget 2027. Bookmakers warn of accelerated black market growth, citing 222 shop closures and 1,000 job losses after the 2019 duty doubling, while AK Bets founder Anthony Kaminskas predicts double-digit unlicensed share. Former Paddy Power chief Stewart Kenny instead urges a 40% tax on online revenue.
SCCG Take — Licensed operators face margin erosion or product retreats that could cede ground to unlicensed betting; the GRAI must prioritize enforcement parity to safeguard the regulated market under the 2024 Act.
Ireland’s government is considering an increase to the current 2% betting duty paid by operators on stakes for both online and retail bets. This forms part of plans to support €7bn in public spending and €1.5bn in tax reductions under Budget 2027. Pool betting duty at 1% is already expected to rise to 2% in that budget.
Irish bookmakers are pushing back, arguing the change would accelerate unlicensed activity. The debate draws on examples from other European markets and occurs as the country operates under its new gambling regulator.
Operators Push Back Against Further Tax Hikes
Anthony Kaminskas, founder of Dublin-headquartered AK BETS, criticised the existing turnover tax as “already punitive.” He stated that increasing it will leave regulated operators with three options: offering only casino products and removing sports betting, offering “awful prices” on sports bets, or charging customers “a tax on their bets.”
Kaminskas said all of these would result in either “giving sports bets to the black market” or making the industry “uncompetitive to the black market.” He added: “Black market is going to capture a large double digit figure of market share soon in Ireland,” citing the UK as an example where rising betting taxes have increased unlicensed activity.
The Irish Bookmakers Association (IBA) has warned that higher duty would lead to more betting shop closures, job losses, and illegal activity. The IBA noted that the doubling of betting duty from 1% to 2% in 2019 led to 222 betting shops closed and “roughly 1,000 retail jobs” lost. In a submission to Simon Harris, Ireland’s Finance Minister, the IBA warned: “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.”
Where the Risk Lies
Not every industry voice opposes higher taxation. Stewart Kenny, co-founder of Paddy Power—now under Flutter Entertainment and the biggest betting company in Ireland by online traffic—has called for a 40% tax on online betting and casino revenue.
The exchanges take place under the Gambling Regulation Act 2024 and oversight by the Gambling Regulatory Authority of Ireland (GRAI). As detailed by SBC News, drawing from Racing Post and The Irish Times reporting, the proposals place fresh pressure on the regulated sector at the outset of this new oversight regime. The key risk is that added costs widen the gap with unlicensed operators who face none of those burdens, potentially undermining the GRAI’s consumer protection goals before they are fully tested. Operators will track the final budget decision for signals on how this tension resolves.
Reporting: SBC News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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