Ireland’s online gambling grows as retail betting struggles

Garance Limouzy October 2, 2024

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Ireland’s online gambling grows as retail betting struggles

Ireland is taking an additional step towards new gambling regulations, as the long-awaited draft law is currently being discussed in the Senate. The country is nearing the establishment of the Gambling Regulatory Authority of Ireland (GRAI), a regulatory body expected to be operational by the end of 2024, following the passage of the long-awaited Gambling Regulation Bill 2022. This new framework aims to introduce more comprehensive regulation to a sector that, despite its size, has remained largely unregulated.

Online gambling growth

The online gambling market in Ireland is expected to carry on growing steadily. Projections for 2024 estimate that online gambling will generate €1.24 billion in revenue, with online casinos alone contributing €700 million, according to Statista. This growth trajectory is expected to continue with a compound annual growth rate (CAGR) of 2.46 percent, pushing the total market to €1.40 billion by 2029. The online sports betting segment is expected to reach €330 million in 2024.

The expansion is driven by increasing user engagement, with an anticipated 14.4 percent of Ireland’s population participating in online gambling in 2024, and more than 900,000 users forecasted by 2029.

***Data: Statista. Source: SiGMA News.***

Retail betting and tax concerns

While online gambling grows, traditional retail betting faces serious challenges. The Irish Bookmakers Association (IBA), which represents both physical and online betting operators, has reported that the land-based sector is struggling with low profitability. Since the betting tax was doubled in 2019, 127 betting shops have closed, and the IBA anticipates more closures due to increased regulatory costs on the horizon.

In their 2025 budget submission, the IBA urged the government to reconsider further fiscal adjustments that could destabilise the industry, particularly for smaller operators. The sector currently contributes over €171 million annually to the Irish exchequer and employs more than 6,000 people. The IBA’s primary concern is that higher operational costs and taxes could drive legal operators out of the market, leaving room for illegal gambling activities to proliferate.

Long-awaited new regulatory measures

The Gambling Regulatory Authority of Ireland (GRAI), once operational, will regulate both online and in-person gambling services. This includes strict oversight on advertising, with potential new rules set to ban gambling advertisements between 5:30 a.m. and 9:00 p.m. There are also plans for a National Gambling Exclusion Register and a Social Impact Fund to support research into gambling addiction and fund preventative education programs.

The GRAI will introduce three types of licenses: business-to-consumer gaming, betting and lottery licences, business-to-business licences, and licences for charitable causes. These measures aim to create a safer, more responsible gambling environment while still ensuring that the industry can contribute positively to the economy.