Peter Fitzpatrick (Louth, Fine Gael) | Oireachtas source

The national lottery was set up by the National Lottery Act 1986 and has been run under licence by An Post since. An Post holds the licence, which was put out to tender in late 2001 under a previous Government; the company won the competition held between 1999 and 2001.

This National Lottery Bill is intended to replace the National Lottery Act 1986 and has a number of purposes. It will provide for a new national lottery regulator, which shall be funded by the national lottery operator and independent of the Minister for Public Expenditure and Reform. It will continue to protect the integrity of the national lottery through the continual safeguarding of cash generated by national lottery sales and set out certain principles regarding the regulation of the national lottery. For example, there are the circumstances in which a licence can be amended or revoked. The Bill will continue to provide a legislative framework for the operation of the national lottery.

To date there has been little amendment to the original legislation governing the national lottery. In 2011, there was a transfer of responsibility from the Minister for Finance to the Minister for Public Expenditure and Reform. Under section 8 of the 1986 Act, the national lottery fund was established and was used to receive the proceeds of the lottery from An Post National Lottery Company and the payback, cost and prize money for the company. There was also a facility to transfer surplus money to the central funds after leaving an appropriate amount for possible liabilities for good causes and investing for the benefit of the fund any money not currently required.

To the end of 2011, the 25 years of the national lottery generated more than €12 billion in funds for good causes. Money for good causes is distributed between Departments through the process of Estimates of expenditure, and the Department decides where the funding goes. Included in the Bill are the categories of good causes, including sport and recreation; national culture and heritage, including Irish languages; art under the Arts Act 2003; and health of the community, as well as youth and welfare amenities. The Government may also determine other categories.

Sections 26 to 28 in Part 4 provides for the licensing of the national lottery, and one licence can exist at any one time. The terms of section 26 are general, and the competition can be conducted in any manner, as long as the Minister's direction is abided by and the eventual winner is considered suitable by the regulator. Under section 28, the details of the licence and the code of practice contained within the licence are to be published by the regulator. This publication is not to include commercially sensitive information.

Currently, the national lottery is run by a subsidiary of An Post, the An Post National Lottery Company. Under section 29, operation of the national lottery will be carried out by a subsidiary company formed by the licence holder. The memorandum and articles of association of the new company must be approved by the regulator. The minimum amount of funding going to prizes will be raised from 40% to 50% and the terms determining who can buy or own a national lottery ticket will remain unchanged. People prohibited from doing so include persons under 18 and staff of the operator; any person in a company that prints lottery tickets; and any person in a company the supplies computers, electronic devices, computer programmes or related products that are used by the operator. National lottery tickets cannot be sold for less than normal or for free.

Others who may not purchase a lottery ticket include persons employed in a company that prints lottery tickets and any person in a company that supplies computers, electronic devices, computer programmes or related products used by the operator of the national lottery.

Part 3, comprising sections 7 to 25, inclusive, provides for a new independent office of regulator of the national lottery. The term of the regulator is up to seven years. Under section 9, the function of the regulator are as follows: to license the holding of the national lottery; to ensure the lottery is run with all due propriety; to ensure the interests of participants in the national lottery are protected; to ensure the revenues allocated to good causes are as great as possible; and to monitor and enforce compliance by the operator.

The debate on the reform of the national lottery has focused on the possibility that a new licenceholder will emerge, an upfront fee will be charged, the licence will be longer and the licenceholder will achieve greater profits. These matters are not considered by the Bill, however. The main changes implemented under the legislation will be to provide for an independent regulator, chosen by the Minister, to oversee the operation of the licence and the competition for the new licence.

The Bill will provide greater transparency as regards the licence and establish an enhanced system of compliance and enforcement. It will be the terms of the new licence, however, that will have a greater impact on changes from the current licence system and national lottery.

See this speech in context