Government seeks bids for lottery licence

A EUROPEAN firm could be running Ireland’s national lottery licence from 2011.

The Government is seeking bidders to operate the franchise which has been held by An Post for 20 years.

A competitive process, due to begin in early 2009, will allow firms to compete for the licence from across the European Economic Area (EEA).

The EEA comprises the 27 EU member states as well as Norway, Iceland and Liechtenstein.

An Post has held the licence since the National Lottery was established in 1987, and is expected to re-apply to retain the franchise.

In 2007, 3,623 retail agents throughout the country sold Lotto tickets and scratch cards worth €778.5 million.

Last month the largest jackpot in the history of the lottery, almost €19m, was won by a Co Carlow syndicate.

Last week the Cabinet agreed to extend the current lottery licence term for one year until the end of 2011 to allow time for the tender process to be completed.

“The extension of the current licence will ensure that there will be sufficient time to complete this process and to allow a lead-in time, if necessary, for a new lottery operator,” said a Department of Finance spokesman.

The costs of running a competition to award the licence can be high, both for the Department of Finance and the companies that apply, the spokesman added.