Online betting a threat to good causes funding, National Lottery maintains, despite report

By Joe Leogue

The National Lottery has rejected the findings of a report that claims that online betting on the outcome of lotto draws poses no threat to the National Lottery Good Causes funding.

The report by economist Jim Power (pictured), which was commissioned by the Irish-licensed operators Lottoland and myLotto24, claims that online competition from independent companies from the European Lotto Betting Association and other rivals is healthy for the sector.

“It is factually incorrect to argue, or indeed lobby, on the premise that online lottery betting, which is fully licensed in this jurisdiction, presents any threat to the good causes funding generated by National Lottery sales each year,” Mr Power said.

“In fact, based on 2017 figures provided by the three leading European Lotto Betting Association members licensed and active in Ireland, their total combined draw-based betting turnover was only €1.4m, 0.25% of the €559m draw based sales turnover achieved by Premier Lotteries Ireland in the same period.”

“Contrary to previous media coverage, rather than damaging good causes funding, the long-term presence of these operators should actually have a beneficial impact by creating more competition, choice and innovation in what might otherwise be effectively a monopolised market.

“Moreover, increased competition in the digital channel is an essential aspect in achieving long-term sustainability for good causes funding.

“It is reasonable to expect that the holder of a national license, no matter the market, would provide product offerings in line with changing consumer trends but what is prevalent with the National Lottery license in Ireland since it was awarded nearly five years ago is an operator with a sales strategy massively at odds with such trends.”

A spokesperson for the National Lottery said it “rejects the claim that offshore, bet-on-lottery operators pose no threat to National Lottery Good Causes funding”.

“These operators are clearly cannibalising our games and denying good causes from additional funding, which is incredibly impactful on communities across the country.”

“They are not playing to the same strict rules we abide by and, as evidenced in other jurisdictions, are a serious threat.”

It said Mr Power’s “demonstrates an inherent lack of understanding of the National Lottery”, and the legislative and regulatory framework in which it operates. More than €5.3bn has been raised for Good Causes in Ireland since the National Lottery was set up 31 years ago, money that has transformed communities right across the country.

“Premier Lotteries Ireland has recorded three consecutive years of growth in funds generated for Good Causes since it won the licence - €188m in 2015; €213.3m in 2016 and €226.3m in 2017.

“Contrary to what the report suggests in relation to our digital channel, growth in digital is an important part of our strategy to bring the National Lottery to a new generation of adult players,” said the spokesperson.

“Regular active online players grew from 81,000 in 2016 to almost 97,000 by the end of 2017.”