Social Democrats Propose 5% Betting Tax Increase for Sports, Culture Funding

The Social Democrats propose raising Ireland's betting tax from 2% to 5% to generate over €165 million annually. This funding would support capital grants for sports clubs in disadvantaged areas and create a €150 Sports and Cultural Activity voucher for all children. Social Democrats Children's Spokesperson Aidan Farrelly stated this proposal is fully costed and aims to address chronic underinvestment in the arts and promote sports participation.

The Irish Bookmakers Association (IBA) warns that a 5% betting duty would decimate local bookmakers and cause significant job losses across Ireland. IBA Chairperson Sharon Byrne highlighted the current strain on betting shops, evidenced by recent closures. Flutter Entertainment, owner of Paddy Power and Betfair, which employs 2,800 people in Ireland, also cautioned against the impact on jobs and investment, especially as new gambling regulations take effect. Flutter closed 57 shops in Ireland and the UK in October.

Betting duty in Ireland has been 2% since 2019, levied on operators. The Labour Party previously suggested a 3% increase, ringfenced for domestic football and other sports. In Britain, remote gaming duty increased from 21% to 40% last month. General betting duty for online sports betting (excluding horse racing) will rise from 15% to 25% next year. Flutter anticipates these rises will impact its annual earnings, which were around €14 billion last year, by hundreds of millions.