UK Tax Hike: How Will This Impact the Irish Gambling Market?

The BGC commissioned EY, previously known as Ernst & Young, to document how the industry may be affected by changes to betting and gambling regulations. The UK government has been threatening to increase taxes on the gambling industry in the upcoming budget, which is due to take place on 26th November. 

There has been speculation about the Government's plan, all indicating a tax hike of up to 50%. The three core gambling tax rates, general betting duty (GBD), remote gambling duty (RGD), and machines gaming duty (MGD) will see individual changes:

One of the main concerns of the tax increase is the risk of black market gambling. The growing black market would benefit from a tax hike, as the fewer restrictions, better promotions, and higher limits would be more appealing to players. 

Despite the incentives, black market gambling carries significant dangers for consumers, such as no player protection regulations, no responsible gambling tools, and an increased financial risk. This risk is not isolated to the UK, with Irish players potentially seeking out these unregulated sites to combat the ripple effect of the tax increase.

The UK and Ireland are governed by their own dedicated regulatory bodies, with the UK under the Gambling Commission (UKGC) and Ireland under the newly formed Gambling Regulatory Authority of Ireland (GRAI). There will be a knock-on effect in Ireland if the UK’s gambling industry faces a tax hike. 

Multinational companies, such as Flutter and Entain, have already expressed concerns about the impact of a tax rise, risking thousands of store closures and job losses. The Irish gambling market has already taken a hit, with Flutter confirming that 28 Paddy Power stores in Ireland will be closing. 

The stricter gambling regulations in the UK have been closely watched by Irish lawmakers, especially after recently passing their own reforms under the Gambling Regulatory Act 2024. 

The increase in the gambling tax is still uncertain, and there will be no clarification until the budget is released in late November. Whether it increases or not, it will be interesting to see how the gambling market adapts to the changes. With the GRAI still finding its feet in the industry, the UK’s tax regulations will undoubtedly be a significant influence on Ireland’s future gambling market.