Ireland, once home to some of the world’s most powerful betting brands, has long taken a surprisingly light-touch approach to gambling regulation.
The island that produced Flutter Entertainment – parent of Paddy Power and Betfair – as well as domestic heavyweight BoyleSports relied until recently on a patchwork of outdated laws and a tax certificate system administered through revenue. Oversight was fragmented; enforcement powers were modest as the regulatory system had not kept pace with the complexity of the market.
But that has now changed. In early February, with the commencement of key provisions of the Gambling Regulation Act 2024 and the opening of applications for betting licences, the Gambling Regulatory Authority of Ireland (GRAI) began operating as a centralised regulator with sweeping supervisory and enforcement powers. The change is striking: Ireland has shifted from being primarily a tax collector in gambling to being an assertive rule-maker.
Early market reactions to Ireland’s new gambling regime
Even as the regulator takes shape, the market is already responding. James O’Kelly, head of corporate development at SolutionsHub, says his firm is already guiding clients through the transition.
“We have one operator under the old regime who will move into the new regime. We also have two existing clients who already hold licences in other jurisdictions, including the UK, who will be applying for the new Irish licence,” he says. Beyond that, “we’re in discussions with around five to 10 potential customers at the moment who are looking at the Irish licence”.
The profile of interested operators is diverse: established UK-facing brands, European groups seeking incremental expansion, and domestic start-ups. For now, it is predominantly B2C. B2B licensing will follow later.
O’Kelly is realistic about the competitive landscape. “I think it will be a sizeable market, but tough to crack, particularly on the B2C side. There were already around 30 to 40 licences under the old regime. With new entrants coming in, it will be competitive.”
A gambling regulator with reach
The GRAI says implementation will be careful and measured. “The GRAI is adopting a phased approach to the licensing of operators; applications opened on Monday 9 February 2026 in respect of betting licences,” it tells iGB. “The application process is substantial with a number of important requirements placed on operators before they can be approved.”
Once licensed, operators “will be required to comply with all obligations under the terms of their licence and those obligations which have taken effect under the Act or regulations that the GRAI has set under the Act”. Under section 188, “licensees will be required to provide the GRAI with a compliance report for the purpose of enabling the GRAI to confirm that licensees have complied and are complying with their obligations”.
Prevention, protection and evidence-based regulation
The authority describes its approach in straightforward terms. “The GRAI’s work is grounded in the principles of prevention, protection and evidence-based regulation.” It promises to “encourage compliance, supporting and assisting operators with guidance on the obligations within the Act”, but also to take “proportionate and dissuasive enforcement action against licensees who do not operate in accordance with the law, as well as those operating illegally”.
The gambling act gives it strong powers. There are “over 30 criminal offences, a number of which attract significant custodial sentences of up to eight years’ imprisonment”. The GRAI may apply to court for orders blocking access to prohibited gambling activity and to block payments to payment providers. It is “already collaborating with other regulators (including through the Gambling Regulators’ European Forum – GREF), law enforcement agencies and industry partners to address extra-territorial black market activity”.
For now, the roll-out is gradual. “At present the core offence of illegal gambling under section 67 of the Act has been commenced only insofar as it relates to illegal betting. While it is an offence to provide remote betting without a licence, it is not yet unlawful to provide remote gaming.” But that will change in due course.
The UK factor
Much of the growing interest is influenced by developments across the Irish Sea. Britain’s recent tax increases have narrowed margins and unsettled mid-tier operators. O’Kelly notes, “There is a clear shift – we’re seeing strong interest in Ireland, particularly after what’s happened in the UK. The UK tax increase came as a shock to the industry. It’s reduced profitability for many UK licence holders, and I think medium and smaller operators will struggle to survive.”
For those firms, Ireland offers a culturally aligned, English-speaking market with a regulatory structure that O’Kelly says has “modelled aspects of the system on the UK, particularly around responsible gambling and compliance”. For smaller operators that operate only in the UK, “expanding into Ireland feels like the next logical step”, he continues.
Ireland probably won’t replace Britain as a core market, but it offers diversification and more competitive taxes. The GRAI underscores that “licensing fees, and contributions to the Social Impact Fund, will be proportionate to the size and turnover of the operators, ensuring fair and equitable contributions across the industry”. Stability will be critical. Few operators would commit capital if sharp tax hikes loomed.
O’Kelly offers a cautionary note familiar across regulated markets: “That risk exists in any jurisdiction where taxes or regulatory burdens become too high. If taxes rise sharply, it can push activity toward the black market.” The GRAI is aware of that risk. Beyond enforcement powers, it highlights: “Education and awareness and working with the general public to identify unlicensed gambling and the dangers associated with lodging money with illegal operators.”
Legal friction ahead
While market interest is steady, legal uncertainty remains. Deirdre Kilroy, partner at Two Birds, points first to timing: “The licensing regime under the new Irish laws is being introduced on a phased basis and there has been general uncertainty about the timing of the introduction of new licences and new obligations,” she says. “This has made business planning difficult, with information required to justify investment incomplete.”
Advertising rules are likely to be an early area of dispute. “Section 148 prohibits licensees from advertising relevant content where the advertisement includes material that is ‘likely to’ give rise to certain listed effects or harm; there is no guidance in the law on how to evaluate or apply this test.” Although guidance exists, Kilroy warns that “given the language in the section, and the difficulty in connecting content with the harms listed, disputes regarding the section’s interpretation and the GRAI’s interpretation of the law may arise.”
Ban on inducements
The regulator has also enforced a ban on inducements, which Kilroy believes to be broad and unclear. “The definition of ‘inducement’ is very broad and seems to extend to mechanics with an indirect gambling-encouragement effect.” The ultimate scope “has yet to be tested”.
Companies are not immune to this liability, Kilroy warns. “Compared to the previous regime, their risk of personal liability exposure is far greater,” Kilroy says. The definition of “relevant officer” is “deliberately cast very wide, to capture pretty much every individual exercising substantive governance, management or operational authority within a licensed body, including senior managers and shadow directors”.
Key managers must remain competent and trustworthy for the duration of the licence. “The direct personal legal risk exposes relevant officers to the risk of criminal sanctions for non-compliance.” Such provisions mirror other Irish regulatory frameworks. But, Kilroy notes, “it will be interesting to see if they are deployed in the gambling sector”.
A meaningful alternative?
Ireland’s new framework is neither weak nor overly punitive. It aims to balance a deeply embedded betting culture with modern expectations for consumer protection and accountability.
Early interest is steady, especially from UK operators, but Ireland’s market is small and competitive. The regulator says it will enforce rules fairly, while Deidre Kilroy expects legal challenges to clarify parts of the law, and company directors face personal responsibility.
“Ireland has real potential as a market, but it won’t be easy. Operators need to be strategic – scale matters and competition will be tough. Those who approach it thoughtfully, with an eye on compliance and long-term stability, are the ones likely to succeed,” predicts O’Kelly.
Whether Ireland becomes a real option for UK operators after the tax hike will depend more on stable, predictable rules than on the tax rates themselves. Clear rules and fair enforcement could make the market appealing, but heavy-handed regulation might push business elsewhere, licensed or not.
For a country long comfortable exporting betting expertise while regulating it lightly at home, the move is overdue. Its success will be measured not by the ambition of its laws, but by the consistency of its application.
Original article: https://igamingbusiness.com/legal-compliance/ireland-igaming-new-framework-transform-market/
