Niall Collins (Limerick County, Fianna Fail)
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274. To ask the Minister for Public Expenditure and Reform his views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [52957/22]

Michael McGrath (Cork South Central, Fianna Fail)
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The National Lottery is a significant asset which plays an important role in generating funds for Good Causes throughout Ireland and across a range of areas including sport and recreation, culture and heritage, community health, the arts, and youth affairs.

The National Lottery Fund transferred €289m to the Exchequer in 2021 which represents a significant 14% increase on 2020 and is a record unprecedented figure under the license commenced by Premier Lotteries Ireland (PLI) in 2014.

Circa €6 billion has been raised for Good Causes since the National Lottery commenced operations in 1987.

In 2012, the State entered into a legal agreement with Premier Lotteries Ireland (PLI) to operate the National Lottery Licence. With regard to expenditure on National Lottery Advertising, under the terms of the Licence to operate the National Lottery, the Operator is required to promote the National Lottery in two respects.

A. Base Marketing

The operator is required to undertake “base marketing” that is “fundamental to the promotion and operation of the National Lottery in the ordinary course”. Some of this expenditure goes on advertising. Base marketing expenditure must be funded entirely by the Operator.

B. Incremental Marketing

“Incremental marketing” is all marketing other than base marketing. Some of this expenditure goes on advertising. Incremental marketing expenditure can be funded by expired unclaimed prizes and/or by the Operator. The Comptroller and Auditor General’s Report on the Accounts of the Public Services 2021 reported that, in accordance with the terms of the Licence, €122 million in unclaimed prizes has been forfeited to the National Lottery operator to date and spent on promoting the National Lottery. The total figure of €122 million correctly reflects the annual figures previously released by the Office of the Regulator of the National Lottery. The amount of expired unclaimed prizes in each of 2020 and 2021 was €17 million.

Advertising and Promotion Code of Practice

Clause 9 of the Licence provides for an Advertising and Promotion Code of Practice (“the Code”) giving the Operator clear guidelines to ensure responsible marketing communication and advertising practices consistent with the laws on advertising in the State. The Code must be reviewed annually by the Operator and any changes must be approved for use by the Regulator, and this has been completed in each year to date.

The Regulator of the National Lottery regularly monitors the Operator’s marketing communication channels to ensure that it follows responsible advertising and gaming practices as per the Code and other clauses of the Licence. The information provided must be transparent, accessible, and not misleading. Players should not intentionally or unintentionally be exposed to communications likely to result in underage or irresponsible play. For example, social media advertising and promotion must be designed to reach only those who are 21+ .

Responsible Gaming / Protection of Players

A statutory objective of the Regulator is that the interests of the participants in the National Lottery are protected. Included in this objective is monitoring how the Operator is protecting players at risk of excessive or problem play. While many people enjoy and engage safely in National Lottery activity, certain groups or individuals can be vulnerable or susceptible to problem play. The Regulator continuously researches and identifies processes and practices that have demonstrated effectiveness in preventing or minimising risk of harm. Safety factors already built into the National Lottery to achieve this objective include:

1.National Lottery ticket machines only operate between the hours of 7am and 11pm.

2.The types of games that the National Lottery may sell are strictly limited.

3.Every new game or change to an existing game must be pre-approved by the Regulator.

4.Each new game or change to an existing game is considered by the Regulator with regard to the risk of addiction or problem play.

5.Retailers and the operator’s customer service staff are trained in the warning signs of addition and problem play.

6.Rules to ensure that the advertising and promotion of the National Lottery is appropriate for the nature of the product are in place and enforced by the Regulator.

7.Direct marketing and upselling are prohibited except where a player has opted in to receiving marketing messages or the Regulator approves of a direct marketing campaign (which has not been the case to date).

8.The National Lottery websites and tickets provide links to information on problem gambling and relevant resources.

In retail specifically:

1.Mystery shop exercises are regularly conducted to ensure that retailers are complying with the requirement not to sell a ticket to a person under 18 years of age and the Think 21 requirement to ask for proof of age. (Minors are at greater risk of developing problems.)

2.There is a limit on the number of scratch cards a player can purchase in a transaction.

Online specifically:

1.There are limits on the amount of money a player can spend online on any day, week or month.

2.Prizes over €100 are sent directly to the player and not paid into their online wallet, to discourage players from reinvesting winnings.

3.To open an online account and purchase a National Lottery ticket you must supply a photo of an identity document that proves you are at least 18 years old.

4.The online channel offers a self-exclusion facility to those who require assistance with limiting their National Lottery play.

5.Credit cards are no longer accepted for online play.