Former Paddy Power Chief Urges Higher Online Casino Tax

Stewart Kenny, co-founder of Paddy Power, has advocated for a 40 percent tax on online gaming and casino businesses in Ireland. He contends these platforms pose significant risks, especially to young men, and serve no public benefit.

What Happened

Stewart Kenny, former chief executive of Paddy Power bookmakers, has called on the Minister for Finance to impose a 40 percent tax on online gaming and casino businesses, according to The Irish Times. Kenny, who co-founded Paddy Power, stated that these operations present a “significant danger,” particularly to young men, and provide “no public good whatsoever” (The Irish Times).

In a letter co-signed by addiction specialists, Kenny characterized online slot machines and casino games as “the crack cocaine of gambling,” as reported by The Irish Times. He asserted that these games are extensively marketed in Ireland as “harmless fun,” and international gaming companies are leveraging Ireland’s “lenient” tax regime (The Irish Times).

Key Details

• Stewart Kenny served as chief executive of Paddy Power from 1988 to 2002 and resigned from the board in 2016 (The Irish Times).
• The UK government recently increased its remote gaming duty on online gaming profits from 21 percent to 40 percent (The Irish Times).
• Ireland applies a 23 percent VAT rate to the gross gambling yield of these companies (The Irish Times).
• Kenny’s letter was co-signed by Prof Colin O’Gara, Dr Frank Houghton, and Niall McNamee (The Irish Times).
• A report by Dublin City University economist Tony Foley, examining the evolution of online gambling in the UK, concluded that a similar trend was “becoming a reality in Ireland” (The Irish Times).

Why It Matters

Kenny’s proposal suggests that online slot machines and casinos are more profitable than traditional gambling forms, such as horse racing, due to minimal manpower requirements and 24-hour operation (The Irish Times). The letter highlighted growing evidence that gambling companies use traditional sports betting as a “Trojan Horse” to transition gamblers to more addictive online casino and slot machine operations (The Irish Times). This shift is particularly concerning as online casinos reportedly pose a significant danger to younger men, who may not fully understand the associated risks (The Irish Times). There is also growing evidence indicating that gambling addiction is a major contributor to suicide and self-harm (The Irish Times).

The letter argues that Ireland has become a target for online casinos, which concentrate their marketing efforts in the country rather than in markets with higher tax rates (The Irish Times). This follows a proliferation of gaming and gambling sites in Ireland over the past decade, with corresponding increases in gambling expenditure and online advertising (The Irish Times). The UK gambling market is now largely dominated by online casino games and slot machines, with an estimated £84 billion (€97 billion) annually wagered on online slot machines alone (The Irish Times).

What’s Next

Kenny’s letter calls for the Irish Government to immediately follow the UK’s example by introducing a minimum 40 percent levy on gross gambling yield for online casinos, according to The Irish Times. Furthermore, the letter proposes that in subsequent budgets, online casino taxes should be raised to levels comparable to tobacco taxation, which is close to 80 percent (The Irish Times).

Originally reported by The Irish Times·Published 18 Sep 2026, 04:00