Department studying challenge to lottery

The Department of Justice has confirmed it is studying the implications of a European Commission demand that foreign lotteries must be allowed the option of operating in the Republic.

The Commission was yesterday reported to have told the Government it had until the end of this month to change the 1956 Gaming and Lotteries Act and permit foreign and private lotteries. Gambling within the EU context comes under the services heading and therefore under the terms of the Single Market, the Commission has ruled.

A Department of Justice spokesman said the EU view on lottery operations was a highly complex one, and the Department was "examining a report from the Commission" on the matter.

Such a change could have huge implications for the National Lottery even though it was set up under separate legislation in 1986.

A spokeswoman for the National Lottery, Ms Paula McEvoy, said the Commission's demand was a matter for the Departments of Justice and Finance.

However, the gaming industry believes the new legislation sought by the EU may also force an easing of stringent controls on casinos and gaming machines.

A spokesman for the Irish Amusement Trades Association told the Sunday Times that the EU had informed the Government that it could not ban foreign lotteries. It is understood the Government may have no option but to change the legislation.