In Ireland, a report released on Tuesday by Indecon International Economic and Strategic Consultants revealed that in 2024, approximately €289 million in potential sales were diverted from the Irish National Lottery due to the availability of lottery-betting products offered by bookmakers. This shift resulted in an estimated €81 million reduction in funding for good causes. The report, commissioned by the Irish National Lottery, has prompted calls for regulatory intervention or a ban on these betting practices, which notably affect the allocation of funds traditionally directed to various community projects and initiatives.
The regulatory landscape surrounding this issue is complex. The Gambling Regulation Act 2024, which established the Gambling Regulatory Authority of Ireland, does not include the Irish National Lottery within its purview. This exclusion has allowed a parallel betting market to flourish, where commercial bookmakers offer bets on national lottery draw outcomes without contributing to the public benefits traditionally funded by lottery sales. The report underscores the substantial economic contribution of the official lottery, noting its implications for sales, prize distribution, retail impacts, and employment, as well as the effects of competition from the betting sector.
The Irish National Lottery experienced a rise in total sales to €855.7 million in 2024, up from €805 million in 2018, with cumulative sales exceeding €6.2 billion over that period. Notably, 2021 saw a peak with sales reaching €1.054 billion. Online and digital platforms have played a significant role, accounting for 18.1% of total sales in 2024, more than doubling since 2018. The lottery’s economic impact in 2024 was estimated at approximately €2.1 billion, emphasizing its substantial role in the national economy.
Despite these figures, the phenomenon of lottery betting represents a significant challenge. Bookmakers’ lottery bets, where participants wager on the outcomes of lottery draws without purchasing official tickets, do not contribute to the good causes fund. This discrepancy is seen in other jurisdictions, such as the United Kingdom, where such practices are banned under the Gambling Act 2005. The absence of similar restrictions in Ireland has led to increased calls for regulatory action to safeguard the traditional lottery funding model.
The report also highlights the broader economic and social impacts of the official lottery. In 2024, players received €487.6 million in prizes, and the lottery has paid out a total of €12.3 billion since its inception in 1987. Prize payouts alone accounted for 57% of sales in 2024, surpassing the statutory minimum. Retail operations, although experiencing a decline in the number of retail agents from 5,842 in 2018 to 5,166 in 2024, still saw commissions totaling €44 million in that year. The retail sector benefited further from an estimated €389.9 million in non-lottery retail spending connected to lottery outlets in 2024.
Beneficiaries of the lottery funding have been particularly impacted by the reduction in sales. In 2024, €239.3 million was directed towards good causes, supporting a wide array of sectors, including sports, arts, and community initiatives. The Indecon survey found that lottery funding constituted 20% of annual funding for beneficiary groups on average, with 13% stating they could not operate without it. Furthermore, 46% reported they would have to significantly reduce operations in the absence of this funding.
The practice of lottery betting has also affected the employment landscape. The report estimates a decline of approximately 1,929 jobs in 2024 due to this issue. Additionally, the market value of the Irish National Lottery licence has been adversely affected, with Indecon estimating a reduction between €118 million and €148 million, as revenues are diverted to betting operators.
There is a mounting call from various stakeholders, including the Irish National Lottery, retail associations, and charity representatives, for government action to protect the integrity and funding capacity of the National Lottery. Cian Murphy, CEO of the Irish National Lottery, emphasized the need for prompt government intervention to preserve the value of the lottery’s operating licence and ensure continued support for public causes. Tara Buckley, director general of the Retail Grocery Dairy & Allied Trades Association, echoed these sentiments, urging Ireland to align with European standards by banning lottery betting to safeguard essential community funding.
The broader gambling context in Ireland highlights significant participation rates, with 64.5% of the population engaging in some form of gambling. Of particular concern is the 3.3% of individuals identified as being at high risk, with men aged 25-34 showing the highest levels of risky gambling behavior. This backdrop underscores the necessity for considered and effective regulatory responses to ensure both player protection and sustainable funding for societal benefits.
Looking ahead, the next steps involve potential government review and legislative action. The Department of Public Expenditure and Reform may need to consider regulatory amendments to address the identified gaps and bring the practices of lottery betting under stricter oversight. Such measures will be critical in restoring market fairness and ensuring the continued flow of lottery-derived benefits to community projects across Ireland.
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