The National Lottery Act 1986 provided for the establishment of the National Lottery. The National Lottery Company was incorporated in September 1986 and commenced trading in March 1987. Section 5 of the National Lottery Act 1986 provided that the surplus from the National Lottery may be used for the following purposes: Sport and other recreation; national culture, including the Irish Language; the arts, within the meaning of the Arts Act 1951; the health of the community; and for such other purposes as the Government may determine. The following additional categories have been so determined: youth, welfare, national heritage and amenities.
In order to give effect to this statutory provision, the surplus from the National Lottery is transferred to the Exchequer on a regular basis and is applied each year to part-fund the Exchequer allocations to a specified range of expenditure subheads across various Votes. Details of the amounts transferred and the allocations to the relevant subheads are set out each year in Appendix 1 of the Revised Estimates for Public Services.
In 2008, the amount of National Lottery surplus available and applied to these subheads was €265m (of which €6.42m was carried over from the previous year) and in 2009 the amount was €275m.