Seanad debates

Tuesday, 11 June 2019

Gaming and Lotteries (Amendment) Bill 2019: Report and Final Stages

 

2:30 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael) | Oireachtas source

We held an extensive debate on the issue then. As I stated then, I have no function in regard to the national lottery, its regulation or licensing. That is a matter for the Minister for Public Expenditure and Reform under the National Lottery Act 2013.In that Act, the Minister did not provide for any prohibition on bookmakers, be they land based or remote, on offering bets on any or all of the numbers drawn in the national lottery each week. I must take my guidance in this matter from the Minister for Public Expenditure and Reform who very recently reiterated his position opposing this proposal. There appears to be no particular evidence that betting on lottery numbers is undermining funding for good causes currently or that it threatens the profitability of the national lottery operator in the long term, which, I must point out, is now a private company. There is no evidence to show this other betting is having any impact on the good causes or the profitability of the private company.

Senator Mark Daly in his Committee Stage contribution made comments to the effect that betting on lottery numbers leads to a loss of revenue to the Exchequer with no tax paid on such bets. That is not correct. Licensed online and remote bookmakers offering bets on lottery numbers and all licensed Irish betting shops must pay tax on every bet that they take. They must pay the current necessary licence fee. Bookmakers' shops also contribute to the Exchequer by providing many jobs in towns and villages all over Ireland. The product offered in betting shops also differs. Bookmakers offer bets on one, two, three, four or five numbers being drawn, which is not possible with the national lottery. I further understand that bookmakers do not offer bets on the whole six or seven numbers, as the national lottery does. Online operators offer bets on the outcome of the national lottery, Euromillions and other lotteries, with players having to choose the corresponding numbers relating to those draws. The product offered in betting shops differs, where bookmakers offer bets on one, two, three, four or five numbers being drawn. In terms of cost to customers, bookmakers accept bets of 0.05 cent and upwards whereas the national lottery minimum stake is €5 for two lines without the plus option. The essence of the Senator's proposal appears to be to enhance the monopoly position of the private operator of the national lottery by ending the possibility for licensed bookmakers, land based and remote, to offer bets on the outcome of the Irish national lottery draws. The Senator's proposals would, however, allow offered bets by licensed land based or online bookmakers on any other lottery, just not the Irish one.

I expressed a concern on Committee Stage that accepting this amendment might lead to further demands from the national lottery, perhaps seeking to prohibit the local lotteries that support our sports clubs and community organisations. A similar argument to that made by the Senator could be made that they also impact on the turnover of the national lottery. The local football, rugby or hurling club that has a lottery could be said to impact on the national lottery. For the reasons I have outlined, the Government is not in a position to support this proposal.

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