Irish National Lottery Sale Finalised
The long awaited sale of the Irish National Lottery was finally completed on Friday 27th February 2014 after months of drawn out negotiations. Ireland’s state owned national postal service, and previous lottery operators An Post, now share ownership with UK lottery giants Camelot.
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Brendan Howlin, Minister for Public Expenditure and Reform, announced that he granted the renewed license to the consortium on Friday. The new partnership, which will operate under the guise of ‘Premier Lotteries Ireland’, signed the 20 year license in a deal worth €405 million. Speaking on Friday, Howlin said “Almost two years ago, I brought a proposal to Government that I strongly believed could yield significant revenues. Today, I am pleased to say that I have delivered on that proposal – half of the €405 million achieved for the transaction will now be paid.”
The first instalment of the payment is due to be made to the state in the coming days and proceeds from the sale have already been earmarked to help fund a variety of worthy projects. The main benefactor of the lump sum will be the New Children’s Hospital of Ireland which is currently in early stages of development.
Premier Lotteries Ireland can now draw from the combined expertise of two industry giants who both have proven track records of improving lottery sales in Ireland and the UK. At the signing, Minister Howlin said “I am very pleased with the outcome of this process. We have a new operator that brings together valuable domestic experience together with international expertise. I believe Premier Lotteries will grow the business in a responsible manner and I look forward to a greater annual revenue stream for Good Causes.” Under the renewed license, the contribution to Good Causes will be set at 65% of all gaming revenues once prizes have been excluded.
Although the transaction may have been significantly delayed, all parties involved are now satisfied with the overall outcome. Lottery staff and retailers expressed their concerns over job security and contract conditions, but lengthy negotiations resolved the issues. Howlin added “This process has run very smoothly. The interests of the key stakeholders have been protected, in particular, the staff of the lottery and the thousands of retailers.”
The contract also stipulates that the new operators must deliver improved technology within 18 months. It is likely that Premier Lotteries Ireland will take significant steps towards improving the online lottery market and generating increased revenue for both the consortium and the Good Causes fund.
You can read more about the history of the sale here.
3rd March 2014
