Irish lottery funds not threatened by lottery betting sites, says report
European Lotto Betting Association report refutes claims that sites are “siphoning” good cause returns
Lottery betting sites pose no threat to funding for good causes generated by the Irish national lottery, according to a new report commissioned by the European Lotto Betting Association (ELBA).
The report, ‘An assessment of the online gambling market in Ireland’, was written by University College Dublin economist Jim Power in response to claims made by Irish national lottery operator Premier Lotteries Ireland (PLI).
PLI claimed lottery betting operators were “clearly cannibalising” its games and significantly reducing the amount of funding going to good causes used for communities across Ireland.
However, Power claims it is “factually incorrect” to claim that the rise in lottery betting is contributing to the decline in funding for good causes because the revenue generated by lottery betting is insignificant in comparison with PLI’s return.
The report illustrates a €43m (16%) drop in funding for good causes between 2008, where returns were €268m, and 2017, where returns to good causes dropped to €225m.
However, the report states that, according to 2017 figures from three Irish ELBA members, their total combined draw-based betting turnover was only 0.25% of the €559m draw-based sales turnover recorded by PLI in the same period.
Power asserts that increased competition from online operators will benefit good causes, calling it “an essential aspect” for ensuring good-causes funding is sustainable in the long-run.
Finally, the report questions PLI’s business strategy, asserting that the operator has not taken full advantage of the trend toward online, which only contributed 6.5% of the Irish lotteries ticket sales, in comparison to the UK National Lotteries 19.5% digital sales.