LADBROKES Ireland has indicated it plans to withdraw from the eight on-course betting shops the firm currently operates. The move follows the Government’s decision to double betting tax in 2019.

The racecourses affected are Clonmel, Galway, Gowran Park, Killarney, Limerick, Listowel, Navan and Punchestown.

Ladbrokes Ireland director Jackie Murphy told the Irish Independent that the costs of operating the on-course betting shops as a result of the increase will make them unviable. She claimed it’s unlikely that any other operator will take them over once Ladbrokes’ contracts expire, unless they want to operate them on a loss-making basis.

“I would be surprised if anyone else goes into them,” she said. “No one would be doing it to make money.”

Ladbrokes is also reviewing its race sponsorship portfolio and, along with BoyleSports, has informed all relevant racecourses that current deals may not be renewed.

Barney O’Hare of Bar One Racing runs the Dundalk Stadium betting shop and is also a significant race sponsor. He told The Irish Field: “Things are going to get very tight next year. Ladbrokes Ireland went into examinership at 1% tax, so what will happen at 2%?”

O’Hare, who has over 50 shops nationwide, expects to keep the Dundalk Stadium shop and hopes to continue his race sponsorships, which includes three Grade 1 races at Fairyhouse in a fortnight’s time.

He said he expects a lot of independently-owned betting shops to close within the next year. Shop closures mean less commercial customers for Irish racing live pictures and therefore less media rights revenue for Irish racing.

A similar tax increase for bookmakers in Britain, plus a massive reduction in the maximum stakes allowed on fixed odds betting terminals there, is also expected to lead to shop closures when introduced next April.

A bookmaker-commissioned report given to the British government which suggested a doomsday scenario for betting shops has been discredited by consultants and even by the Paddy Power Betfair group.

Horse Racing Ireland chief executive Brian Kavanagh says “these issues have been factored into our Strategic Plan and will not impact on our spending plans.”