Ireland to Raise Pool Betting Duty as Part of Gambling Market Overhaul
Ireland will double its pool betting duty to 2 per cent starting in 2027, matching the rate applied to retail and online betting. The move, announced by Finance Minister Paschal Donohoe in the 2026 budget, comes as the country prepares to open its reformed gambling market to new operators under the supervision of the Gambling Regulatory Authority of Ireland (GRAI).
New Tax Framework
The planned tax increase follows the rollout of the Irish Gambling Regulation Act, adopted in November 2024. Under the new legislation, the Gambling Regulatory Authority of Ireland (GRAI) will oversee licensing and supervision across the entire betting sector.
Currently, only Tote Ireland DAC and Rásaíocht Con Éireann (RCÉ) are authorised to operate pool betting for horse and greyhound racing. Once the new system takes effect, a wider range of licensed operators will be able to enter the market.
“The new Gambling Regulatory Authority will be responsible for licensing and supervising the betting sector. Pool betting is restricted to just two entities currently, but under the new regime, a wide range of licenceholders may be authorised to engage in pool betting,” said Paschal Donohoe.
The minister added that the delayed implementation is designed to allow for discussions between the Department of Finance and industry representatives.
“I am concerned that betting operators may be incentivised to modify their business structures to avoid liability to betting duty, so I will legislate in budget 2027 for a separate pool betting duty charge. This will provide time for engagement between my Department and relevant stakeholders on the design and structure of this duty,” he said.
Industry Pushback Expected
The announcement is likely to draw criticism from horse racing stakeholders, who have been facing tightening margins in recent years. Smaller racecourses are already struggling with increasing operational costs and reduced media rights income.
The industry depends heavily on annual levies paid by bookmakers, and organisations such as Horse Racing Ireland (HRI), Tote Ireland, and Irish Greyhounds have urged the government to safeguard control of these funds.
The prospect of a higher duty rate has raised concerns about the potential financial impact on operators and the wider racing ecosystem, particularly as Ireland moves to open its betting market to new entrants.
GRAI Prepares for Full Market Launch in 2026
The GRAI, operational since March, has already started preparing the ground for the new regulatory framework. It has conducted a consultation with potential operators and published application guidelines for both Business-to-Consumer (B2C) and Business-to-Business (B2B) companies interested in securing licences.
The authority plans to open the application window in the second half of 2025, with a fully regulated market expected to launch in 2026. Until then, operators must continue to comply with the current legal framework, applying for or renewing licences through the Revenue Commissioners under the Betting Act 1931 and the Gaming and Lotteries Act 1956.
According to GRAI, applications for lottery permits and licences will still be handled by the District Courts and An Garda Síochána until new procedures are finalised.