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National Lottery Licence Sale

Dáil Éireann Debate, Thursday - 22 March 2018

Thursday, 22 March 2018

Questions (2)

Pearse Doherty

Question:

2. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the reason unclaimed lottery prizes are no longer returned to the prize fund; and if he will make a statement on the matter. [13519/18]

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Oral answers (12 contributions)

Why are unclaimed lottery prizes no longer returned to the prize fund and will the Minister make a statement on the matter?

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.

How do we know that the unclaimed prize money is being used as per the contract and who has oversight in this regard? My colleague, Deputy Pearse Doherty, asked the Department of Public Expenditure and Reform for the figure for unclaimed prizes but it was unable to provide it and it asked the regulator to raise the issue with the licenceholder. The licenceholder replied that it could not disclose the figure. If we do not know the figure, how we do know if it is being spent as per the contract and with whom does responsibility in this regard rest?

There is a regulator in place to oversee the operation of the licence and other matters. The Deputy is correct that the regulator of the national lottery did write to Deputy Pearse Doherty stating that under the terms of the agreement it is not in a position to release the information to the Deputy because it is commercially sensitive. That said, a considerable amount of money is being made available for good causes, in respect of which I provided some figures in my initial reply. For example, in 2014, €178 million was released for good causes. This figure now stands at €227 million, such that the figure has increased to a considerable level.

Is Wesley College a good cause?

Is the Minister saying that he and the regulator know the figure but that it cannot be published because it is commercially sensitive or is it the case that the regulator does not know the figure because there is a secrecy clause in the contract such that the licenceholder does not have to reveal how much in unclaimed prizes is used for the promotion of the national lottery and special draws? We have all heard what the figure is off the record but is the regulator and the Minister aware of what it is?

I am not aware of it. I will give the Deputy the full context of the letter. It says that this information is the licensee's confidential information and, therefore, under the clause of the licence it cannot be disclosed by the regulator.

I am sorry, Deputy. The time for this question has expired.

I want clarification-----

Does the Minister know the figure?

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