European firms in game for lottery tender

A European firm could be running Ireland’s national lottery licence from 2012, it emerged today.

The Government is seeking bidders to operate the franchise, which has been held by An Post for 20 years, and a the tendering competition, due to begin in early 2009, will permit applicants from across the European Economic Area (EEA).

The EEA comprises the 27 EU member states as well as Norway, Iceland and Liechtenstein.

Last week the Cabinet agreed to extend the current lottery licence term for one year until the end of 2011 to allow time for the tender process to be completed.

“It is expected that there will be international interest in the competitive process,” said a Department of Finance spokesman. “The extension of the current licence will ensure that there will be sufficient time to complete this process and to allow a lead-in time . . . for a new lottery operator.”

The Camelot Group, which runs the UK national lottery, ruled itself out of the running for the Irish licence. The firm was recently appointed to run the UK franchise until 2019. “Given these commitments, involvement in other lottery operations does not form part of Camelot’s current strategy,” said a spokesman.

An Post has held the licence since the National Lottery was set up in 1987 and is expected to reapply to retain the franchise.

The National Lottery has a dominant position in the Irish market with 80 per cent of adults across the country buying scratch-cards or playing the Lotto, according to the the company.

Generating an annual turnover of €750 million, the National Lottery operates 20 games, of which 13 are scratch-card varieties, and it has a network of 3,600 retail agents.

The company undertook a €6 million revamp 18 months ago after research found its branding was out of touch. The revamp came in the wake of several years of falling sales.

Among the changes, more prizes were offered by adding a new prize category, and a minimum jackpot of €2 million was introduced.

Last month, the largest jackpot in the history of the lottery, almost €19 million, was won by a Co Carlow syndicate.

A €15 million Euromillions jackpot was also recently collected from the National Lottery offices in Dublin. The winning quick pick ticket for the July 4th lottery draw was bought in Co Tipperary.

Limerick woman Dolores McNamara remains the country’s biggest lottery winner, however, after scooping €115 million in the Euromillions in 2005.

Additional reporting PA