Dáil Éireann Debate, Tuesday - 5 March 2019
44. Deputy Joan Burton asked the Minister for Public Expenditure and Reform if he has received an opinion from the regulator of the national lottery regarding the threat to the national lottery and the good cause fund posed by online, offshore bet-on-lottery operators; if he will publish this opinion; and if he will make a statement on the matter. [10639/19]
Amharc ar fhreagraIt appears that the national lottery, which contributes over €220 million to good causes each year, is now subject to a very serious threat from the operation of unregulated offshore betting-on-lottery operators. Has the Minister received the report that was previously indicated? If so, will he make it available?
I have not yet received a formal opinion from the national lottery regulator regarding this topic. As the Deputy may be aware, it falls outside the statutory remit of the Office of the Regulator of the National Lottery.
I am aware of the issues in question. The topic has been raised in general discussions as part of the normal engagement my officials and I have with the regulator's office on matters pertaining to governance. We receive general updates on the regulator's activities in exercising her functions, as set out in the National Lottery Act 2013. In a recent meeting, the regulator expressed concern about the potential future impact of online lottery betting in Ireland.
The context for the operation of the national lottery has changed significantly since its original establishment in 1986. The national lottery remains an important asset. The level of moneys raised for use by good causes has increased steadily in recent years. It increased by 28% between 2014 and 2018. As set out in the Revised Estimates for Public Services 2019, this year's estimated total expenditure of €333 million for good causes will be part funded by approximately €225 million from the national lottery, with the remainder being funded by the Exchequer.
While this is a dynamic and rapidly evolving market, the national lottery continues to deliver strong results. The most recent reports and financial statements of the current operator, Premier Lotteries Ireland, show that gross ticket sales rose by 6.1% in 2017.
Against this background, there does not appear to be any evidence of a significant impact on the national lottery arising from online lottery betting at present. My officials will continue to engage with the regulator and Premier Lotteries Ireland to review the impact of online lottery betting websites on the national lottery and the good causes fund.
Does the Minister expect to receive an opinion from the regulator of the national lottery regarding the threat posed by online offshore operators that allow people to bet on the outcome of lottery draws? I think he has conceded that it is a threat. It would have a negative impact on the good causes fund. As he indicated in his answer, the Minister appreciates the €225 million that goes to a wide range of community, sporting, cultural and other events throughout Ireland. Other countries have taken action to reduce the risk to their national lotteries from these unregulated offshore lotteries to ensure funds are held for good causes. Why does the Minister sound so reluctant to intervene in this case? Most people who are aware that gambling is a serious problem know that this kind of online gambling is becoming more prevalent.
I would like to put on the record of the Dáil some figures regarding the transfers that the national lottery has made to the Exchequer in recent years. I could take any year as a benchmark. In 2011, the figure was €230 million. It decreased to €178 million in 2014. That figure has now rebuilt to €227 million. The contribution the national lottery is making had increased in recent years, but it may have stabilised or plateaued, depending on one's perspective, between 2017 and 2018. The Deputy asked about the engagement of my office and my Department with the regulator on this matter. My understanding of the view of the regulator is based on an extract from the last engagement with our regulator that has been shared with me. The regulator knows that this could be a long-term issue. At the moment, the type of gambling under way here that could present a difficulty to the lottery is small in scale. The Minister of State, Deputy Stanton, will bring a report to the Government shortly in relation to the regulation of the gambling sector. I think that will provide a valuable platform for dealing with this issue.
Unregulated offshore gambling in this area is developing with speed. I appreciate that it is also developing quickly in many other areas.
We have heard about the gambling regulator and gambling regulation legislation over a very long time. Despite all the talk, nothing has happened. The Minister may wish to see it introduced. However, the threat to the national lottery exists in the here and now. We will welcome whatever the Minister of State, Deputy Stanton, is going to do in due course. However, this particular problem needs to be addressed in the here and now. It would be foolish to think we can leave it to one side until we bring in the gambling regulator's office. Maybe that will happen but maybe it will not. It has been very slow to materialise. I would appreciate any advice from it but I do not know when it is going to come.
The Minister of State, Deputy Stanton, will be providing us with the report of the interdepartmental working group on gambling very soon. It appears to me that the only way in which we can deal with this issue is to look at how we can review and maybe change the 2013 general scheme of the gambling control Bill. The facts and figures indicate that the current contribution made by the national lottery to good causes has not yet been materially affected by other developments within the lotteries here in terms of online or electronic lotteries. The contribution that the Exchequer has received from the national lottery attests to that. I acknowledge that although currently the competition is small, it can grow quickly. Were it to grow quickly, it could in turn affect the contribution the national lottery can make to good causes. We have to look at all this from a regulatory perspective. The best and most effective way this can be done is through the review that is being undertaken of the 2013 scheme.
We have received apologies from Deputy Gino Kenny, who cannot be here to take Question No. 45.
