AN POST is working with Goodbody Stockbrokers on assembling a financial consortium to bid for the next National Lottery licence.
The semi-State company, which has operated Ireland’s lottery business since its inception in 1986, is keen to retain the licence which is to go out to tender later this year.
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.
An Post, which operates the lottery for an annual management fee just under €3 million, declined to comment on how it plans to fund its bid. However, it is understood that the company recently engaged Goodbody Corporate Finance to explore several possible funding options, and to draw up an options document.
One of the options under consideration is a joint bid with US gaming and technology firm Gtech Corporation, which already supplies the Irish lottery with ticket terminals.
Gtech, which is a subsidiary of Italian gaming giant Lottomatica, the world’s largest lottery operator, has expressed an interest in acquiring the licence under certain conditions.
Minister for Public Expenditure Brendan Howlin announced on Thursday that the new licence would be awarded early next year to the winner of a bidding process that will take place in October.
He also indicated his intention to appoint external consultants to assist the Government with the competitive process.
Provisional figures for 2011 show the National Lottery generated ticket and scratch sales worth €761 million, marginally less than the €772 million recorded in 2010.
An Post’s lottery licence has been in place since December 2001 when it was issued by then minister for finance Charlie McCreevy.
The Government last year extended the licence by further 18 months to June 2013 in order to allow time for the holding of a competition for the new permit.
An Post will face significant competition for the licence this time round from United Kingdom company Camelot, which already operates in the North, and from Australian gambling firm Tatts Group, which recently won the right to operate the New South Wales lottery, both of which have indicated an interest in acquiring the licence.
A Camelot spokesman yesterday confirmed that the company was following the process closely. “We await with interest more information on the plans for the lease structure before making a final decision on whether to participate further.”
