Mr. Andrew Algeo:

Premier Lotteries Ireland, PLI, welcomes the opportunity to address the joint committee to respond to matters relating to the national lottery. PLI has operated the national lottery under licence and regulation since November 2014. PLI is owned by Ontario Teachers' Pension Plan, OTPP, An Post Pension Funds and An Post, who together, have considerable experience in operating state lotteries.

The national lottery commenced operations in 1987 and has the purpose of raising funds for good causes by providing lottery entertainment in Ireland. On any week, more than one third of Irish adults participate in the national lottery. Participants have contributed more than €6 billion to the funding of good causes in Ireland since the national lottery commenced. Under this licence, 57% of national lottery ticket sales went to players as prizes, 28% went to good causes funding, 6% went to local retail agents in commission on their sales and 9% went to PLI to run the national lottery and generate a return on investment.

PLI has invested more than €71 million, predominantly in technology infrastructure, and doubled its workforce. It has renewed the national lottery games and, in 2015, it responded to customer feedback for higher jackpots by launching a new 47-ball lottery game with a jackpot cap. Since 2015, national lottery ticket sales have grown by an average of 6.6% per year, a turnaround from the previous seven-year period during which ticket sales shrank by 20%. Sales of lottery games were also higher in 2020 than in 2015, a stark reversal of the 41% drop experienced in the last full six years of the 45-ball game. By 2020, annual funding for good causes had increased by €66 million from its 2015 level to reach €254 million. Players won €529 million in prizes, creating 33 millionaires in 2020 alone, and lottery agents received almost €50 million in commission.

The recent rollover of the lottery draw has received significant attention in past weeks with two specific concerns raised. The first is whether there is something amiss with the draw process. Lottery draws are operating in accordance with the game rules, with nothing amiss. Lottery jackpot wins are transparent to the players. They are awarded to players whose tickets have the six numbers that match those randomly chosen at our live televised draws. These draws follow prescriptive processes and are observed by KPMG. The numbers drawn are retrospectively tested to check that no anomalies are evident. The supplier of the central lottery IT system also supplies 35 other lotteries and that system is secured by several layers of protection which prevent malicious intrusion. Checks and balances confirm that the game is operating according to the rules.

The second concern expressed was that the lottery game design is unwinnable. The lottery jackpot can be won, as the six-year history of the current game design clearly shows. A ticket has the same chance of winning in each lottery jackpot draw, the lottery plus 1 draw and the lottery plus 2 draw, each of which have 47 balls. Since 2015, there has been, on average, a winner of the lottery jackpot every five weeks, with an average value of €5.8 million; a winner of the lottery plus 1 top prize every six weeks, and a winner of the lottery plus 2 top prize also every six weeks. In the period since this lottery jackpot started to roll on 9 June 2021, there has been, on average, a winner of the lottery plus 1 top prize every four and a half weeks and of the lottery plus 2 top prize every four and a half weeks. The main lottery draw can be won and it frequently is.

It is highly unusual that the current lottery jackpot still has no winner. Given the tickets purchased since early June, the chances are akin to rolling a die 37 times without the number six arising. Then again it was somewhat unusual that we had lottery jackpot winners on three consecutive Saturdays just before this long roll. Variation in jackpot roll lengths occur because each lottery draw is a pure game of chance without memory. Some €46 million has been generated for good causes from Lotto ticket sales in this current jackpot roll. Since the jackpot capped at a record €19 million, 215 winners of prizes below the jackpot have shared in the €18.1 million of prize money which would otherwise have grown the jackpot further. In this way, as the roll has continued, the game design has rewarded participation with large prizes.

It is in the interests of PLI, and those of all stakeholders of the national lottery, including our customers, that winning the jackpot is seen as both aspirational and possible. That requires jackpots to be both large and won frequently enough. This is a balance. We know our customers want this lottery jackpot to be won soon, as do we. We have sought regulatory approval to introduce a "must be won draw" into the lottery game rules, which would ensure that such an improbably long wait for a capped jackpot win cannot occur again. That would also allow us to provide certainty to lottery players as to the latest date on which this record €19 million jackpot will be won.

I thank the committee for its attention. I am happy to answer any questions that members may have.