Irish Gambling Sector Faces Potential Overhaul, Tax Increase

According to recent reports, the current coalition government is looking at increasing taxes levied against the gambling industry. This will be in a bid to balance the existing budget and make up for gaps within the hospitality sector.

The gambling sector has been in an interesting place over the last few years. On the one hand, it seems to be more profitable than ever, partially thanks to the internet. While land-based gambling has continued to soar, many more consumers are turning to various websites to have their needs met. As a recent report from CardPlayer explains, real money sites are seeing record profits. These profits, it seems, will be used to cushion the effects of the VAT cut.

The Gambling Sector to the Rescue?

The recent announcement of a VAT cut for the hospitality sector means that revenue shortfalls are inevitable. In response to this, the Sunday Times reports that the 2% Betting Duty might be increased in the near future.

It's worth noting that the gambling sector has generally come under more scrutiny in recent years. Just last year saw the passing of the Gambling Regulation Bill of Ireland (GRBI), which evolved gambling laws into the modern era. Part of this saw tax revenue from gambling being used for various public welfare measures.

And while gambling tax revenue has always been used similarly, there is more emphasis on the industry's financial success as a way to cushion blows to other sectors. Previously, former UK Prime Minister Gordon Brown suggested a higher gambling-related tax to cushion the effects of the two-child limit on child benefits. 

And while some public office holders clearly support this decision, many within the gambling space have pushed back against it, suggesting that it is potentially eating into their profits.

The Worth Of Gambling

Regardless of whether this law passes, it is clear that the gambling sector is not going anywhere. According to recent reports, the Irish online gambling sector alone brought in €1.24 billion in 2024, and these numbers are expected to hold steady this year. Even with this, it is a drop in the bucket compared to the global gambling sector,  which has seen its profits increase year after year.

Much of this can be put down to the applications of new technologies like blockchain, artificial intelligence, virtual and augmented reality, and so on. This, naturally, has led to more scrutiny and more general interest. While certain countries and states around the world have doubled down on their support for gambling, creating new laws to welcome the industry and maximize profit, others have harshly pushed back.

Industry stakeholders, in turn, have been forced to defend their businesses from scrutiny and push back against laws that they believe are excessive. As a discussion of an increased tax rate for gambling within Ireland takes centre stage, we can expect to hear from more industry stakeholders. Some have suggested that casino operators might move their businesses to regions with more favorable tax laws, thus impacting local job creation.

SP