National Lottery may seek partner to fund licence bid

THE National Lottery has said it might need a new partner if the Government goes ahead with plans to seek an upfront payment of about €650 million from the winners of a lottery licence to fund the National Children’s Hospital.

National Lottery chief executive Donal Connell said the company, which is a subsidiary of An Post, might have to consider a partnership arrangement to fund the cost of a successful bid to retain its current licence.

Mr Connell told the Oireachtas committee on finance, public expenditure and reform that the situation was dependent on how the terms of any new licence would be framed.

He also acknowledged that a review of the licence terms could see a change in the level of National Lottery funding devoted to prizes and good causes.

The company retains 55% of all income for prizes worth €420m last year. Its licence allows for “not more than 58%” to be retained for prizes.

It also provides €244m of 31% of revenue for projects in the area of arts, sports, health and welfare and the Irish language.

The Government recently extended the lottery licence by 18 months up to June 2013 in order to allow time for the holding of a competition for the new licence.

Public Expenditure Minister Brendan Howlin confirmed the Government was examining opportunities to cover a shortfall in exchequer revenue presented by the expiry of the existing licence.

He admitted the Government intended to seek a large upfront payment from the new licence winners to fund the construction of the new children’s hospital, which is to be located at the site of the Mater Hospital in Dublin at an estimated cost of €650m.

The committee heard that 2.2m people — 63% of the adult population — play the lottery each week. The National Lottery had total sales of €772m in 2010.

Mr Connell said 442 millionaires had been created since the establishment of the lottery in 1986, including 25 new millionaires so far this year.

Ireland has the fifth highest lotto sale in Europe on a per capita basis. It is ranked eighth of 41 European lotteries for the amount it distributes to good causes.

Mr Connell said it was hoped a new worldwide lottery would be launched in 2014 which would offer “a prize structure that no single lottery could deliver on their own”.