Forecasted closure of 200 retail shops and potential loss of 1,000 jobs in Ireland if the proposed increase in betting duty is implemented
Ireland Faces Potential Loss of 200 Betting Shops and 1,000 Jobs Due to Proposed Betting Duty Increase
The Irish Bookmakers' Association (IBA) has issued a warning about the potential consequences of increasing betting duty in Ireland. If the proposed tax changes are implemented, the IBA predicts that around 200 betting shops could close, resulting in the loss of approximately 1,000 jobs across the country.
Currently, betting duty in Ireland is a 2% excise on every bet placed with licensed bookmakers. This turnover-based tax, which applies to all bets made domestically, already has an impact on the industry. The proposed increases could see the betting duty rate rise to 2.5% or 3%, significantly increasing operational costs for bookmakers.
The Tax Strategy Group (TSG) has explored the option of raising betting duty in Ireland to 2.5% and 3% from the current 2% rate. A duty increase by half a percent could raise €26.5 million in a full year, while a one percent rise could amount to an extra €53 million. However, these potential gains could come at a cost to the betting shops' viability and employment.
The IBA, representing the Irish bookmakers, has stated that protecting employment, sustaining commercial contributions to local economies, and ensuring the commercial viability of legitimate operators should remain central to government policy. The association argues that the proposed tax changes could lead to shop closures, fuel the illegal market, and severely weaken the regulated betting sector's important economic and fiscal role.
The proposed betting duty tax relief is set to increase from €50,000 to €65,000 per firm, aiming to benefit small independent retail bookmakers with a turnover less than €2.5 million. However, Revenue, Ireland's tax authority, has expressed reservations about the relief amount as it would only benefit a limited number of operators and add to the state aid compliance challenge associated with the relief.
The budget for this year is due to be presented in October. The IBA urges the government to consider the potential impact of the proposed tax changes on the retail betting sector and employment before making a decision.
Additional Information
Since 2008, the number of Irish betting shops has declined steeply, with 721 shops open this month compared to 1,385 in 2008. The Irish Horse Racing Board (IHRB) has taken significant actions to improve its financial governance in response to the Mazars investigation. In 2019, the rate was doubled from 1% to 2%, causing receipts to almost double from €52.4m in 2018 to €95m the following year. The TSG also recommended increasing betting intermediary duty commission by 5%, bringing the figure to 30%, which would raise another €800,000. Retail betting accounted for €46.6m, and online betting accounted for €95.4m, an 86% increase on the 2023 figure of €51.3m. Last year, receipts from betting duty totalled €141.2m, an increase on the 2023 figure of €102.7m. Racing Post offers free bets, with all the best offers available on their website.
The Irish Bookmakers' Association (IBA) is concerned that an increase in betting duty could lead to the closure of 200 betting shops and the loss of approximately 1,000 jobs in the business sector, with potential consequences also spreading to the casino-and-gambling industry. The proposed tax changes could increase operational costs for bookmakers substantially, which the IBA fears could weaken the regulated betting sector's significant economic and fiscal role.
