Dáil Éireann Debate, Wednesday - 27 March 2013
152. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the measures he will put in place to ensure an alignment of interests between good cause beneficiaries and the new operators within the new national lottery licence framework. [15714/13]
View answerSince 1986, the lottery licence has been managed by An Post National Lottery Company and has made a significant contribution to the State through making good cause contributions of approximately €4 billion. Importantly, the new licence is being designed to align interests between the new operator and the State with the objective of maximising contributions to be paid to good causes over the life of the next licence.
Therefore it is intended that good causes contributions under the new licence will be linked to a percentage of Gross Gaming Revenues (Sales less Prizes) over the period of the new licence. This will offer the new licensee greater flexibility and scope for the growth and development of lottery games and distribution channels. Growth in Good Cause Revenues will ensure contributions to Good Causes are maximised over the period of the new licence.
Our aim is to maximise the annual payment to Good Causes over the period of the new licence. This will be determined prior to the launch of the licence competition when a number of other matters in relation to the licence structure and licence competition have been determined. This development follows detailed engagement by our financial advisers Davy with the marketplace.
The Government’s aim in this process is to deliver a significant upfront payment while ensuring that the annual revenues for good causes are maximised.
