Brendan Howlin (Wexford, Labour) | Oireachtas source

Deputy McDonald's question was to ask the Minister for Public Expenditure the measures to be put in place to ensure an alignment of interests between good cause beneficiaries and the new operator within the new national lottery licence framework.

The reply states:

Since 1986, the lottery licence has been managed by An Post National Lottery Company and has made a significant contribution to the State through making good cause contributions of approximately €4 billion. Importantly, the new licence is being designed to align interests between the new operator and the State with the objective of maximising contributions to be paid to good causes over the life of the next licence.

Therefore it is intended that good causes contributions under the new licence will be linked to a percentage of Gross Gaming Revenues (Sales less Prizes) over the period of the new licence. This will offer the new licensee greater flexibility and scope for the growth and development of lottery games and distribution channels. Growth in Good Cause Revenues will ensure contributions to Good Causes are maximised over the period of the new licence.

Our aim is to maximise the annual payment to Good Causes over the period of the new licence. This will be determined prior to the launch of the licence competition when a number of other matters in relation to the licence structure and licence competition have been determined. This development follows detailed engagement by our financial advisers Davy with the marketplace.

The Government’s aim in this process is to deliver a significant upfront payment while ensuring that the annual revenues for good causes are maximised.

We are considering how to maximise the income stream to good causes. It is a question of whether we should just fix the figure at 30% of revenue, as indicated, or whether it might be more successful to set a percentage of what we called gross gaming revenues, that is, sales minus revenue. Our advices and the international trend suggest maximisation of the input. There will be a different take per game. If one sets a threshold of 30% per game, one will not have the same income stream available as would be available according to the formula I am setting out. Some games will actually generate little enough profit, while some will generate very large profits. We want to set an overarching figure, that is, full sales minus the prizes, which will constitute a minimum of 50%. The remainder will be an income stream for good causes. Our intention is that the sum will certainly not be less than that which has been available to date.