WP Meath East candidate Seamus McDonagh
Workers’ Party Meath representative Seamus McDonagh has said that recent revelations regarding financial losses and price increases by the new National Lottery operator have shown the perils of privatisation.
Premier Lotteries Ireland (PLI), a consortium which includes An Post and the Ontario Teachers’ Pension Plan (owners of the UK national lottery operator Camelot), took over as operator from An Post National Lottery Company at the end of November 2014.
“In the one month that PLI was operator in 2014 it made pre-tax losses of €17.4m,” said McDonagh. “And in 2015 – its first full year as operator – the company made pre-tax losses of €20.3m. In both years PLI incurred significant finance costs (€14m in 2014 and €27m in 2015) relating to loans it has taken out with the Ontario Teachers’ Pension Plan Board (OTPP), An Post and An Post Pension Plan.
“Within months of taking over the licence, PLI had increased the cost of lottery tickets for the first time in nine years while decreasing the likelihood of winning prizes though adding more balls to the games. When the Europe-wide increase in Euromillions tickets was announced earlier this summer, PLI also sneaked in a new compulsory Ireland-only raffle.”
Seamus McDonagh said that while the National Lottery Act 2013 makes it clear that the national lottery is to benefit the State through a contribution of 65% of Gross Gaming Revenue (sales less prizes) to good causes, the sale of the National Lottery licence to a private company means that profit is the bottom line and good causes are now little more than good advertising. “PLI’s annual report also states a commitment to increasing online gambling, particularly among a ‘new generation of players’. Earlier this summer the addiction expert Dr Colin O’Gara criticised the national lottery adverts and app”.
National Lottery – licence handed to private operator
Mr. McDonagh called on Minister for Public Expenditure and Reform Pascal Donohoe TD to investigate the public interest criteria under which PLI’s licence can be revoked