Paddy Power hit as Ireland doubles tax
Paddy Power Betfair says an increase in the tax rate in Ireland on betting turnover to 2% from 1% will cost the company about €23M a year based off last fiscal year’s results.
Ireland accounts for about 9% to 10% of Paddy Power Betfair’s total revenue.
There are some concerns that if Paddy Power passes the extra costs on to its customers it could lead to more demand for black market betting.
In a statement, Paddy Power Betfair said if the increases had been applied to its Irish businesses in the 12 months ended June 30th 2018 “we would have paid an additional £20 million sterling (€22.8 million) of betting duty”.
The group has 261 betting shops in the Republic while its Paddy Power and Betfair websites have a significant number of subscribers living in the jurisdiction.