The Minister for Public Expenditure and Reform, Mr Brendan Howlin TD, this evening announces that Premier Lotteries Ireland, a consortium comprising Ontario Teachers Pension Plan (the owner of the Camelot Group), An Post and An Post pension funds, has been selected as the preferred applicant for the next National Lottery licence which will be in place for a 20 year period.
Premier Lotteries Ireland has been established as an Irish incorporated company to bid for and operate the National Lottery. Premier Lotteries Ireland draws on the extensive experience of An Post, the parent company of the An Post Irish National Lottery Company (APNLC) and, through Camelot Global Services Ltd. (CGSL), draws upon the collective experience of the Camelot Group (Camelot). Camelot includes Camelot UK Lotteries Ltd (CUKL), the operator of the UK National Lottery since 1994. Premier Lotteries Ireland has met the Essential Requirements and has submitted the highest Licence Fee proposal which is €405 million.
Discussions on finalising the terms of the licence will commence shortly between the Department of Public Expenditure & Reform and the Preferred Applicant. These are scheduled to be completed in November with a formal signature date in December. Subject to successful finalisation of the licence, it is envisaged that the new licence will become effective from October 2014.
Under the next licence, the ongoing annual contribution to Good Causes will be set at 65% of Gross Gaming Revenues, which are defined as Sales minus Prizes. Current arrangements for retailer commission will be maintained. In addition, issues relating to the terms and conditions of lottery staff are being addressed in a positive way in proposals from the Labour Relations Commission.
The Licence Fee will be payable in two equal installments, the first on signature of the licence in December and the second on commencement of the licence scheduled for October 2014.
The Minister expressed his satisfaction with this significant milestone in moving towards the next National Lottery licence.
Background Note for Editors
Progress to date
· In April 2012 Minister Howlin announces Government Decision to hold a competition for next National Lottery licence involving an upfront payment to the State
· In July 2012 the Heads of new National Lottery Bill are approved by Government
· In October 2012 Davy Corporate Finance are appointed as financial and commercial advisers to the Department, following a tendering process.
· In December 2012 the National Lottery Bill is published
· In the period January to May 2013 the National Lottery Bill passes through the Oireachtas and is signed into law by the President in May 2013
· On 8 May 2013 the Minister announces that Expressions of Interest in the competitive process are being sought
· On 30 May 2013 the Minister announces the launch of the full Competitive Process with the key elements as follows:
- the ongoing annual contribution to Good Causes will be set at 65% of Gross Gaming Revenues, which are defined as Sales minus Prizes,
- current arrangements for retailer commission will be maintained
- the upfront payment shall be payable in two equal installments, the first in 2013, the second in 2014
· 20 September 2013 is the Deadline for Applications to be submitted
· 3 October 2013 - Announcement of Preferred Applicant
Next Steps
· October to December 2013 – finalisation of licence with Preferred Applicant leading to signature of licence followed by first instalment of upfront payment to the State
· Nine months after Signature Date of Licence, the second instalment of the upfront payment is due
· 1 October 2014 is the provisional Commencement Date for the next licence