Paddy Power Casino & Sportsbook Threaten To Leave Ireland

Paddy Power is a popular gambling operator in Ireland. They have an online casino and an online sportsbook. What sets them apart from other operators is that they are proud to be irish. They love Ireland, but they are seriously thinking about leaving Ireland and moving their online gambling operations offshore. The company’s chief executive, Patrick Kennedy just issued a warning that they may be moving their operations offshore if the tax burden in Ireland continues to rise. While other operator in known tax havens pay as little as 1.5% tax on gambling revenue, Ireland and England continues to increase the tax rate on gambling operators.

Paddy Power reported a 15% decline in profits which is down to €67.2 million. Paddy Power controls nearly one third of all sports bets taken within Ireland, but their profits continue to decline due in part to the ever increasing tax rate for gambling operators in Ireland. They paid €18 million in taxes last year, and the Department of Finance is planning to raise gambling taxes yet again. A 1% increase in taxes would remove €2.5 million from Paddy Power’s yearly profits. The €2.5 million in losses could easily be used to move the gambling operator offshore in a tax haven where they would pay much less tax and be able to invest much more in advertising.

William Hill moved offshore last year in order to stay competitive and get away from the heavy
tax burden in the UK. Now it seems that other UK gambling operators will need to move as well.
Paddy Power is committed to Irish players, but the burden is almost too much for them to stay.