National Lottery funding hits five-year low

Funding to good causes by the National Lottery hit a five-year low in 2011 as a result of the economic downturn, forcing consumers to spend less money on Lotto tickets and scratch cards.

The National Lottery allocated €231.9m last year to community, voluntary and charitable groups, a figure representing 30.5% of all sales.

However, it compared to a total handout of €243.7m in 2010 and a peak of €267.8m in 2008

In contrast, the total amount of money paid out in prizes was €422.5m — an increase of €2.6m on 2011.

In its annual report published yesterday, the state-owned company said 55.5% of all income was returned in prize funds last year.

The National Lottery which marked its 25th anniversary last year reported overall sales of €761.4m from its range of lottery and scratch card games — a decrease of 1.4% on 2010.

National Lottery chairman Donal Connell praised the company’s performance in a “very challenging retail environment” given that the general decline in retail sales in the economy was 5% over the same period.

The company also blamed the decrease on a higher number of jackpot wins during 2011 than statistically expected which resulted in a lower number of rollover prize funds. There were 25 jackpot wins last year with 23 players becoming millionaires. The average jackpot was €4.1m.

The biggest single winner in 2011 was the McIntyre family from Belmullet, Co Mayo, who scooped a jackpot of €11m. Over 800 players won prizes in excess of €10,000.

On average, every Irish adult spent €166 last year on National Lottery games — a decrease of €7 on 2010 figures. Two-thirds of consumers play National Lottery games on a regular basis. The number of lottery outlets also fell by 33 to 3,780.

Sales of Euromillions lotto tickets increased by 29% to €127.4m, largely as a result of the introduction of a Tuesday night draw. However, sales of Monday Millions fell by €1.2m to €19.4m. Turnover from scratch cards rose by €5.3m to €158.4m.

National Lottery chief executive Dermot Griffin said it would continue to develop such games in a socially responsible manner. He signalled plans are also under way for the development of a global lottery.

The Minister for Public Expenditure and Reform Brendan Howlin is currently in the process of finalising plans for the process of putting a new 20-year licence to run the business out to tender. It is estimated that the licence could raise more than €600m, with proceeds possibly being ring-fenced to fund the construction of a new national children’s hospital.

2011 results

* €231.9m was raised for good causes — a 4.8% decline.

* Overall sales total €761.4m — a 1.4% decrease.

* Prize money increased by 0.6% to €422.5m.

* More than 800 people won prizes over €10,000.

* Lotto sales fell by 12.4% to €282.2m.

* Average adult spent €166 on lottery games.

* There were 23 new Lotto millionaires.