Irish pool betting duty is set to be raised by the government as it irons out remaining elements of the country’s new gambling regulations, but the move may meet some pushback from horse racing.

Paschal Donohoe, Ireland’s Minister for Finance, announced the measure to the Dáil Éireann yesterday (7 October) while reading the 2026 budget, although the tax change will not come into effect until the 2027 budget.

Irish pool betting is currently taxed at 1% while betting duty for both retail and online wagering is set at 2%.

However, Ireland’s new gambling framework will allow new competitors to enter the pool betting space and challenge the incumbents of Tote Ireland DAC for horse racing and Rásaíocht Con Éireann (RCÉ) for Greyhound racing.

“The new Gambling Regulatory Authority will be responsible for licensing and supervising the betting sector,” Donohoe told the Dáil Éireann. “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.

“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.”

With gambling revenue expected to reach €1.24bn, the sector presents a lucrative tax lifeline for the government. However, tax raises had already been hinted at in Ireland prior to settling all conditions of the Gambling Regulation Bill (GRB).

It was reported last month that the government was considering including the sector in a wider review of hospitality taxation frameworks.

A new tax for a new Ireland?

Ireland’s gambling regulations were in dire need of modernisation when the Fianna Fáil-Fine Gael coalition government proposed the Gambling Regulation Bill to the Oireachtas back in 2021.

At the time the market was governed by legislation dating back to 1931 and 1956, with provisions barely applicable to the highly digitised market hosting various omnichannel operators, including multinational firms, that exists today.

The bill became the Irish Gambling Act last year following approval by both chambers of the Oireachtas, the Dáil and the Seanad. The bill has introduced new provisions around player protection and online gaming, and perhaps most significantly a new regulator – the Gambling Regulatory Authority of Ireland (GRAI).

This regulator has already taken on some duties but will not take on its full remit until early 2026. However, it seems that it may already have a dispute on its hands should the Irish horse racing industry take offence at Minister Donohoe’s proposals.

Like its counterpart in the UK, which is currently engaged in a heated debate around taxation, Irish horseracing has had a tough time financially over the past couple of years.

Stakeholders have previously outlined that rising business costs and diminishing media rights payments are putting a lot of strain on smaller racetracks, while the sport as a whole remains heavily dependent on the annual racing levy paid by bookmakers.

During previous discussions, Horse Racing Ireland (HRI), Tote Ireland and Irish Greyhounds have called on the government to ensure that the betting levies supporting horse and greyhound racing remain under the control of respective industry boards.

With the GRAI set to take on responsibility for pool betting licensing and more operators seemingly set to join this market, Irish racing will be keen to ensure that the GRAI’s duties should only cover wagering activities around racing and not levy payments themselves.

The government’s plans to increase pool betting duty from 1% to 2% may raise more concerns about Irish horse racing’s finances due to the impact it could have on levy payment and further effects of rural communities.

SBC News has reached out to Horse Racing Ireland for comment.