The PR stunt will see Paddy Power hand back more than £128,000 ($189,427/EUR200,611) following Ireland's dramatic defeat to Spain on Sunday in a penalty shoot-out.
A spokesman for the group was quoted in the local press as stating: "It's good to give something back to the punters and it means there's more money in the pockets for the next game."
Paddy Power will pay out on single bets made before the kick-off of up to £250 ($369.98/EUR391.82) per person. Not to be outdone, UK bookmaker William Hill has made a similar ruling should England lose their quarter-final tie against Brazil on Friday.
Irish bookmaker Paddy Power has moved to comfort the nation's dispirited populous of football fans by refunding bets to those who gambled that the Republic of Ireland would win the World Cup.
