The company is listed on the London Stock Exchange, and its chief executive David Yu says that since Ireland is already a primary destination for online companies, Betfair is happy to make a significant investment here.
The company has been involved in a dispute with the British Horseracing Authority about a horse racing levy and had threatened to move its operations out of the UK to a lower betting tax environment.
Today's announcement means that part of Betfair's technology team will be in Ireland and its customer operations will be relocated here.