A recently announced plan to increase the betting duty on pool betting in Ireland is a clear signal from the Irish government that the Irish gambling sector is in the sights of further tax levies. This mirrors movements across the broader UK and elsewhere throughout Europe, as governments look to thriving gambling sectors as good options for tax increases.
During a reading of the upcoming 2026 budget, Ireland's Minister for Finance, Paschal Donohoe, announced a planned increase to the tax duty on pool betting in Ireland. The proposed change will not come into effect until well into 2027, but the move is a sign of the times and not a welcome piece of news for stakeholders in the Irish gambling industry. It is an indication that the Irish government have been paying attention to how governments in the wider UK and elsewhere in Europe have been moving on their own gambling sectors, and they have been taking notes.
For stakeholders, investors and players in the Irish gambling sector, what will the increased duty on pool betting mean, and what else might they expect from the Irish government?
What Exactly is Changing?
While the change might seem like a small amount, going up only a single percentage point, it does double the duty that pool betting is currently operating under. Ireland's Finance Minister made it clear that the change is designed to equalise the tax duty that is levied against both pool betting and retail and online wagering, partly due to an anticipation of new operators entering the market. The minister stated that narrowing the possibility of operators exploiting a smaller duty loophole is the main reason for considering the change, but it should be considered that doubling the duty on pool betting is sure to net the Irish government a significant return.
Stakeholders should pay attention to a couple of things here. The minister's anticipation of new competitors to the existing pool betting landscape should signal that the Irish gambling market will soon be a more competitive space, which could prove volatile for investors. The new Irish Gambling Regulation Bill has already set out terms for an increase in all sorts of gambling activities, from online platforms that offer free spins and no deposit bonuses, to competitors to the existing Tote Ireland DAC and Rásaíocht Con Éireann. However, the increase in tax pressure on gambling activities, while good for the government's revenue generation, is likely to narrow the effective margins that some operators can work within, leading to poorer odds for players.
The Wider Gambling Landscape
We mentioned that this move is likely to have been influenced by broader changes in other nearby markets. The wider gambling landscape across Europe is currently singing a song that is very similar in nature to what is occurring in Ireland. Governments are looking to their, in some cases newly regulated, gambling markets, and they are seeing an opportunity to increase tax pressure and garner an increased amount of revenue there. This is occurring elsewhere in the UK, especially, but also in Romania, the Netherlands and Germany.
In regions where gambling tax rates are not directly increasing, the cost of compliance is likely to be on the rise. These costs act effectively as both a barrier to entry for smaller operators, as well as a way for governments to reap additional revenue from operators without it being labelled an increase in tax.
While many of these changes are undertaken in the name of consumer safety, industry experts are beginning to warn governments across Europe that increasing tax and compliance pressures on gambling operators are likely to damage market growth and could lead to job losses or even to the growth of unregulated black market operations.
Why Equal Gambling Taxes Are Important
The importance of evening out the taxes on different forms of betting is important because it stops the market from being vulnerable to products being successful simply because of favourable tax rates. It means that any betting products that players engage with stand on an equal footing and must therefore compete with good service and other normal market metrics for customer attraction.
There has been some pushback on the proposed change from several groups, notably Horse Racing Ireland, Tote Ireland and Irish Greyhounds. These groups have drawn the government's attention to the fact that, in the current system, they owe a good deal of their existence to the annual levy that bookmakers must pay to their respective industries. These groups are concerned that changes to the way that betting is taxed, and the potential introduction of new operators, could upset what they see as an increasingly fragile financial balance.
What Does the Future Hold for Irish and European Gambling?
While the future is impossible for anyone to predict, we can see some potential trends developing. We can expect that gambling operators will continue to see governments view them as relevant sources of increased revenue, and operators and other stakeholders should prepare for three things:
- Increasing costs related to compliance and regulatory needs.
- The possibility of taxes and duties continuing to increase.
- More saturated markets and fiercer competition.
For operators, things might seem somewhat grim. But it should be remembered that the online gambling market in Europe alone was worth almost €50 billion in revenue in 2024. With such extraordinary sums of money changing hands, it should be no surprise to stakeholders in the industry that regulatory and tax pressure should increase.
Final Thoughts
For Ireland, the increase in duty on pool betting isn't a huge story in and of itself. But it is a sign of the times. With a regulated and soon-to-be more open market, tax normalisation is sure to follow.
For stakeholders of the industry, preparing for increases in governmental pressure from tax and regulatory costs would be a smart move.