BOOKMAKERS ARE gearing up for a price war ahead of one of the year's biggest weeks for betting.

Dublin-listed chain Paddy Power, the country's biggest operator, will aim to lure customers to its high-street outlets and website with enhanced odds and a range of other special offers.

Its biggest homegrown competitor, Boylesports, is also offering a similar range of incentives in a campaign that the pair have been waging with growing intensity over the last few months.

Paddy Power's chief executive, Patrick Kennedy, confirmed to The Irish Times yesterday that the chain is planning to step it up a gear from today, the opening day of the week-long Galway races, the largest Irish festival of its kind.

"The economy is tighter, people are dealing with rising prices for pretty much everything, and we have decided to offer our customers better value," he said.

Earlier this year, the company returned €1 million to punters in a money-back special offer on the Champions' League final.

Last week, it offered seven places to each-way backers on the British Open golf tournament, and maintained the best odds on the eventual victor, Pádraig Harrington, throughout the tournament. The move prompted the Boyle family's Boylesports chain to offer seven places.

From this week, both will be guaranteeing odds on horse and dog racing. This means if punters bet on a horse or dog at one price, and it wins at bigger odds, the bookmakers will pay at the bigger price. Normally, once someone takes odds offered by a bookmaker, they are paid at those odds, irrespective of the final price.

The price war is likely to hit independent operators and British players such as Ladbrokes and William Hill, which have extensive Irish chains. Industry observers point out British chains are less willing to offer enhanced odds and, as a result, their Irish businesses could end up feeling the pinch.

Along with Galway, the five-day Glorious Goodwood festival begins in England tomorrow. This will also attract a high degree of interest from Irish punters.

Both events combine to make the week one of the biggest in terms of betting turnover, and also help to attract new customers to betting shops and gambling websites.