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Mr. Brendan Howlin TD, Minister for Public Expenditure and Reform today announced the Government has agreed in principle to the arrangements that will apply in relation to the next National Lottery Licence. On welcoming the decision Minister Howlin stated ““the Government needs to be innovative and creative where opportunities arise to generate additional resources for the State.

The awarding of this licence for a longer duration presents a real opportunity for the State to generate funds that will benefit the community and provide essential services through providing significant funds towards the construction of the National Children’s Hospital.

In addition, I am locking-in a sizeable future revenue stream as part of any deal. The ongoing money towards Good Causes will be retained at current percentage levels. This will be a good deal for the State and the taxpayer. Where the State identifies options to generate additional revenues that don’t impact on taxpayers we need to pursue them.”

The agreed approach for the next licence tender is:

· The new licence will be for a 20 year period and will involve an upfront payment to the State;

· There will be a competitive process for the award of the licence;

· The ongoing provision of a fixed percentage of annual lottery turnover for good causes will be a condition of the licence – this percentage is to be retained at present levels (30.5% in 2011);

· The necessary preparatory work, including legislative changes, will be advanced as a priority. The process will respect the statutory employment position of existing National Lottery staff;

· External consultants may be appointed to assist with the competitive process.

The Minister confirmed that legislative change will be required to deal with future regulation and address issues around online sales, work is commencing on this. Minister Howlin noted “The online applications and processes of the National Lottery need to be modernised. Globally lotteries are doing more business online and in the context of a 20 year licence we need to provide for this but in a manner that has sufficient safeguards. My Department is working on amending the legislation as a matter of priority.”