Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

One of the main objectives of the sale of the national lottery licence in 2014 for a 20 year period was to generate upfront proceeds for the State. Proceeds of €405 million from the sale were used to fund a range of expenditure projects and served to reduce the need for further tax increases at the time.

Under the terms of the current licence for the national lottery, which was agreed in February 2014, clause 6.9.2 provides that any expired unclaimed prizes shall be forfeited in favour of the licensee, provided that such expired unclaimed prizes shall be used solely for the promotion of the national lottery and-or the lottery games in a manner determined by the licensee, which shall include the funding of special draws and additional or top-up prizes and may include incremental marketing and advertising of the national lottery or such other activities to promote the national lottery and-or lottery games as specifically agreed in writing with the regulator from time to time and no later than within 365 days from the day on which they were forfeited in favour of the licensee. This change in policy regarding the treatment of expired unclaimed prizes is not having a detrimental effect on lottery sales and prizes and, consequently, revenue for good causes.

Under the current licence, national lottery sales increased by 13% in 2016, the last year for which we have audited accounts.  This is leading to an increase in prizes and funds for good causes. Prizes have increased by 11%, from €381 million in 2015 to €422 million in 2016 and funds for good causes have increased by 13.5%, from €193 million in 2015 to €219 million in 2016.

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