Minister for Public Expenditure Brendan Howlin has said he is happy to have discussions with local retailers before legislation on the new licence for the national lottery is finalised.
Retailers’ group RGDATA sought a meeting with the Minister to discuss concerns that its members would see their margins for ticket sales cut under the new arrangements. The body represents 4,000 local shops, convenience stores and supermarkets throughout the country.
Mr Howlin announced earlier this month that the new lottery licence would be awarded early next year to the winner of a bidding process that will take place in October.
The Government intends to offer an extended 20-year licence and a significantly enhanced operator’s fee in return for a large upfront payment, thought to be in region of €400-€600 million.
The National Lottery company currently gets paid just short of €3 million a year to operate the licence.
Director general of the retailer group, Tara Buckley, said there was “real concern” that a new operator of the licence would “slash” the current 6 per cent margin paid to retailers in order to recoup the cost of the upfront payment.
“This would have a significant impact on shops who are national lottery agents,” Ms Buckley said.
Her organisation was seeking an assurance from Mr Howlin that it would be a condition of the new licence competition that the current retail margin be preserved. “We understand that a similar condition was imposed on a competition for the National Lottery licence in New South Wales,” Ms Buckley said.
She added that the independent retail sector had played a critical role in the growth and development of the National Lottery over the last 25 years and provided “a safe, controlled and accountable place for the lottery to be played by responsible adults”.
The retailers' body said that while the current margin offered by the National Lottery was “only 6 per cent”, a National Lottery agency acted as a draw for customers into a shop and provided a service customers wanted.
“The independent, family owned shops that RGDATA represents play an important role in their local economy, providing over 80,000 jobs and supporting Irish suppliers and producers. During the current economic downturn these shops are struggling for survival and working hard to keep their staff employed,” Ms Buckley said.
Any changes in their day-to-day business relationships had the potential to make the business unviable.
A spokeswoman for the Department of Public Expenditure and Reform said the concept of a national lottery required that National Lottery products were widely available throughout the country. “Furthermore, the support of the newsagents is vital for the ongoing success of the National Lottery.”
Mr Howlin was happy to have discussions with RGDATA before the finalisation of any legislation on the new licence arrangements, the spokeswoman added.