Key Moments:
- The Irish Bookmakers Association (IBA) has warned that raising the betting duty could lead to widespread shop closures and significant job losses.
- The number of operational betting shops in Ireland has dropped to 714, nearly half of the 1,385 recorded in 2008.
- Betting operators collectively contribute over €170 million annually to the Exchequer but are experiencing collapsing profitability due to rising costs and taxes.
Calls for Tax Stability
The Irish Bookmakers Association (IBA), representing both retail and online betting operators, has urged the government to retain the current 2% betting duty in the upcoming Budget. The Association emphasized that the industry is grappling with “significant cost pressures and major regulatory change” linked to the Gambling Regulation Act 2024, warning that further cost increases may force more betting shops to close, shift consumers towards unregulated operators, and diminish legitimate market activity.
In its submission to the Minister for Finance, assembled in partnership with Emeritus Associate Professor of Economics Tony Foley of Dublin City University, the IBA stressed the necessity for a balanced perspective on taxation and regulation. They maintain that such an approach is vital to sustaining the viability of licensed operators, safeguarding consumers, and supporting the thousands of employees in the sector. The Association highlighted: “The betting duty was doubled in 2019 and the retail industry has been in decline ever since.”
Declining Retail Presence and Rising Costs
According to the IBA, there are currently 714 betting shops in Ireland, a number that has dwindled nearly 50% from 1,385 shops in 2008. Since the betting duty increase from 1% to 2% in 2019, the sector has seen an 18% reduction in shop numbers. Major operators, including Flutter, have also announced 28 further shop closures in the near future. The industry provides more than 6,000 jobs and annually adds over €170 million to the Exchequer through various taxes.
Despite this economic contribution, the profitability of retail betting shops has dramatically weakened. Data within the Association’s submission reveal that average shop operating costs have surged by over 25% since 2018. For example, a shop with €3 million in turnover reportedly saw its profits fall from €92,000 in 2018 to just over €7,000, rendering many outlets unsustainable.
| Year | Number of Shops | Profit (typical €3m-turnover shop) |
|---|---|---|
| 2008 | 1,385 | Not stated |
| 2018 | Not stated | €92,000 |
| 2024 | 714 | just over €7,000 |
Advocating for Proportionate Regulation
The IBA has called for regulatory and tax policies that are “fair, proportionate, and sustainable.” The Association stated: “A balanced approach is needed, one that recognises the sector’s significant fiscal contribution while ensuring that regulation and taxation remain fair, proportionate, and sustainable.” The submission reiterates full support for establishing the Gambling Regulatory Authority of Ireland (GRAI) and the Social Impact Fund, provided that all associated costs are maintained at sustainable levels for licensed operators.
The IBA’s position is that imposing increased betting duties before the new licensing system becomes operational would have undermined the goals of the Gambling Regulation Act by further destabilizing the market.
Concerns Over Black-Market Expansion
A central issue raised in the Association’s submission is the risk of encouraging more consumers towards unregulated operators in the event of additional shop closures or overregulation. They warned: “If licensed operators are taxed or over-regulated out of the market, it provides an ideal breeding ground for black-market operators to flourish.” This trend threatens both consumer protection and state tax revenues.
The submission references regulatory outcomes in countries such as Sweden, Belgium, Denmark, and the UK, noting that excessive taxes or compliance requirements have shifted gambling activity to unauthorized platforms. Without sustainable frameworks, the IBA cautions that closures, job losses, and increased black-market participation would undermine regulatory and fiscal objectives.
Employment Pressures Intensify
According to Central Statistics Office data cited by the IBA, employment in Ireland’s gambling and betting sector stood at about 6,600 in mid-2024, down from 8,700 during the previous year. Each shop generally supports four to five employees, and the closure of 148 shops since 2018 has removed around 600 direct jobs. Nevertheless, the sector remains a significant taxpayer, remitting over €103 million in betting duties in 2024.
The IBA argues that additional tax increases would not bring proportional revenue gains, as they would compel operators to react by reducing player winnings and could lead to depressed turnover. The Association stated: “When the impact of increased unlicensed betting, reduced turnover, and the human impact of shop closures and job losses is factored in, any potential increase in Exchequer returns will likely be very modest.”
The report also notes that these challenges reflect broader gambling sector trends observed in Northern Ireland, including falling machine numbers and turnover.
Calls for SME Support and Broader Retail Recognition
Drawing parallels with other small and medium-sized enterprises (SMEs), the IBA urged the government to consider betting shops in any planned SME support schemes. The submission referenced official acknowledgment of the “severe challenges facing small and medium-sized enterprises, particularly those in retail,” and highlighted the critical role of betting shops as prominent, legitimate businesses embedded in local communities.
The Association’s leadership has previously described betting shops as “an important part of the social fabric in many towns and communities,” pointing to their employment contributions and community presence.
Looking Ahead: Stability as a Policy Priority
As Ireland adapts to the requirements of the Gambling Regulation Act 2024, the Irish Bookmakers Association has underscored the need for stability in government policy making. The submission concludes that supporting employment, sustaining operators’ commercial contributions, and ensuring the continued viability of legitimate betting businesses should remain central to budgetary decisions. The IBA warns that failure to do so could hasten shop closures, foster illegal market growth, and diminish the regulated sector’s economic and fiscal influence.
- Author
Daniel Williams
