Bookies reject National Lottery claims

Online betting companies have hit back at the National Lottery after it claimed that bookmakers who allow customers to bet on the outcome of Lotto draws without buying a ticket are diverting money from good causes.

A report by Indecon Economic Consultants, commissioned by Premier Lotteries Ireland (PLI), repeated previously aired concerns that the lotto operator’s ability to generate revenue and pass proceeds onto worthy causes is diminished by players choosing to bet on the outcomes of draws with online bookmakers instead of buying a ticket.

Analysis shows a rise in online gaming and growth in bet-on-lottery operators, where players can bet on the outcomes of national lotteries without purchasing a ticket,” said the report.

“It is estimated that the total size of the betting and lotteries sector in Ireland amounted to approximately €5.6bn in 2016.

“National Lottery’s sales represented 13% of this market. Betting activities, while close substitutes for lottery participation, do not result in the distribution of funds to social and community organisations and are likely to have different economic and social impacts on the Irish economy.”

In a statement, Lottoland and MyLotto24 said they “reject unfounded assertions by PLI that online betting is undermining good causes funding”.

They said the PLI’s own report was unable to quantify the size of the on-lottery betting market in Ireland — unlike a report the online betting companies commissioned by economist Jim Power, which they published last month.

Mr Power found that the leading three lottery betting operators, ELBA members Lottoland, MyLotto24 and Lottogo.com, had combined lottery betting sales of only €1.4 million in 2017, a mere 0.25% of PLI’s draw-based sales of €559m for the same period,” said Lottoland and MyLotto24.

“Based on this published data, it is grossly misleading by PLI and Indecon to suggest directly or indirectly that online lottery betting is having any material impact on good causes’ funding.”

Lottoland and MyLotto24 further said the PLI report “chose to overlook key concerns”, such as what they said is the under-performance of the National Lottery’s digital channels and “aggressive anti-consumer price increases”.