Ladbrokes to terminate on-course bookmaking in Ireland

The British betting group is likely to cease on-course bookmaking activity in Ireland following a tax increase.

Ireland.- A recent betting tax increase could force UK betting group Ladbrokes to shut down its on-course bookmaking activity in Ireland. The tax was doubled to 2% in the latest budget and, according to Ladbrokes Ireland director Jackie Murphy, it has pushed the company to also terminate race sponsorships in locations where on-course betting shops will be closed.

“I would be surprised if anyone else goes into (on-course betting shops),” Ms Murphy said as she branded the business as “unviable” after the tax raise and “no one would be doing it to make money.” She also explained that it’s unlikely that any other operator takes over Ladbrokes’ place after they cease operations, “unless they want to operate on a loss-making basis.”

Ladbrokes has several contracts that either expire later this year or in early 2019 at Galway, Limerick, Killarney, Punchestown (the only to expire in 2020), Listowel, Navan, Gowran Park and Clonmel racecourses. According to Ms Murphy, the company pays a fixed rent or profit share to operate the outlets through contracts individually held with racecourses.

Despite the imminent shut down of on-course bookmaking, Ladbrokes Ireland director explained the company may look into retaining the Punchestown contract since it has a higher profile but the possibility still needs to be reviewed.