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THE NATIONAL LOTTERY’S new operator has identified its ability to deliver on promises made while bidding for the license as one of the key risks to the business.
Accounts recently filed for Premier Lotteries Ireland (PLI) showed the company lost €17.4 million for its first 19 months in operation – although that figure included just one month of ticket sales.
The company, which is backed by the Ontario Teachers’ Pension Plan and An Post among others, paid €405 million early last year for its 20-year licence to run the National Lottery.
PLI was set up in May 2013 but only started trading on 30 November last year after a transition period.
In 2014 it delivered total lottery sales of €56.8 million and gave out €32.7 million in prizes – above the 50% share required under its license.
The company also delivered €15.7 million in funding to good causes for the year under its license agreement, which requires the lottery operator to hand over about two-thirds of its revenue after prizes to charity.
“Following a successful transition of operations from An Post National Lottery Company, PLI is focused on growing sales, offering players a wide choice of games and maximising the amount raised for good causes,” it said in the filings.
“This will be achieved through the ongoing development of our games and the development of our online channel.
The key risks facing the company include the company’s significant reliance on its IT and telecommunications infrastructure and retailer operations, the delivery of promises made in its bid for the license and the impact of general economic factors on the company.”
Technical glitches
PLI suffered another embarrassing outage with its terminals on Saturday, just hours before that night’s jackpot draw.
The latest glitch followed a major service disruption in February involving the 3G connections for lottery terminals, which resulted in the draw being cancelled for the first time in its history.
Retailers who sell Lotto tickets have since complained PLI was making ‘savings and shavings’ on the draw to maximise its return.
Its chief executive, Dermot Griffin, earlier this year refused to scotch rumours it planned to add numbers to the draw to make it less likely punters would win, or that it would raise ticket prices to lift incomes.
PLI’s operating loss was €5.4 million last year, while it spent some €6 million on “transition costs”. Another €14.1 million went on finance expenses like loan interest.
The accounts showed it had long-term debts of €196.2 million, due to be repaid over the next 5 1/2 years.
It also had separate loans worth €168.8 million to its owners, the bulk of which was due to the company’s ultimate parent, the Ontario Teachers’ Pension Plan. These were all returning 9% interest to be repaid by the end of 2034.
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In the UK Camelot announced this morning that from October they’d be adding 10 extra balls to the lotto, meaning your chances of winning will be reduced from 1 in 14 million to 1 in 45 million. What’s the odds this shower will soon do the same? I’m not too sure it’ll help increase their sales figures if they do.
How does trying to turn a profit make them a “shower”?
went to buy a ticket last Saturday and systems were down again, it’s happening way to often since the take ovet
over
Roger that, over and out.
Those poor Canadian teachers.
The number of winners will drop even further now..
Doesn’t sound very positive.
Why the government sold National Lottery I just do not get. Lotteries were created to fund countries finances and even building of Great Wall of China. According to wiki 4.4bln euro were raised for good causes and 6.7mln distributed in prizes. 4.4 bln this is on average 163mln euro per year, yet they sold the license for 405 mln. Would you sell your milk cow when you have plenty of feeds for her (65% of Irish people played) and your family is strawing? I just do not get it.
Sorry everyone, I meant ” 6.7 bln (not mln) distributed in prizes”
and strawing is starving. Need to review my English or my typing skills :).
The government never ran the lotto they only ever sold the licence
I guess government was deciding what to do with the money from lottery as it was run under license by the An Post National Lottery Company which was subsidiary of An Post (100% owned by Irish Government) owned 80% of NL Company and 20% belonged to the Minister for Public Expenditure and Reform (Government) Let’s say it was run by the state to be exact.
Sounds a bit like a lottery running a lottery company.
“The key risks facing the company include the company’s significant reliance on its IT and telecommunications infrastructure and retailer operations, the delivery of promises made in its bid for the license and the impact of general economic factors on the company”
- the delivery of promises made in its bid for the license
Such as maybe keeping the money flowing to charities, keeping jobs and the network useable?
Seems to me like this was one of the things the Irish Government were doing well. Maybe we should offer them €250m to take it back off their hands
Have to love this part of the comment
“Following a successful transition of operations from An Post National Lottery Company,…”
There was nothing successful about it and it is still failing… lol
It stinks in my view…
Why anyone wastes their money on this nonsense is beyond me.
Ask the guy from Mayo, he’ll know the answer
The people who win the lotto nearly every week dont think its nonsense
Let me get this straight, they were allowed to borrow the entire sum to buy the lottery at artificially high interest rates of over 9% in order to minimize their operating profit (and obviously Irish tax). If this was part of the Apple Tax probe, we’d be hung out to dry……
I’d imagine the 9% rate is changed by a parent company to the operating company instead of by a bank. You’re probably not wrong about the reason though.
I was cribbing about not winning small cash prizes and a guy named Ivan advised me to give it up. I did now I’m up the equivalent of a small prize every week.
So effectively they lied to get the contract. Imagine pitching a business proposal to someone, getting the contract and then turning round and saying “well actually if I fulfill the terms, I’ll lose money or go bust”. You couldn’t make this up. Did no one think to check the figures before giving them the contract or were there too many brown envied floating round obscuring the view?
The website is excellent, nice and quick. Hopefully that functionality will be added to the App.
I use to be a very poor man who has always not find luck when it comes to playing the lottery, I have been playing lottery since i was 21 years and now i am 45, meaning i have been playing the lottery for 24 years. The biggest fund i have ever won in my life was 400 bucks. But one day my story turns to history after i find this man name Dr Suju on the Internet that he is the best when it comes to winning of lottery. This man is a very strong voodoo doctor who gives out the numbers that can never fail. After all my years of laboring and struggling to win the lottery i finally won ( $62,000,000) Dr suju is the name, email is drsujuspelltemple@gmail.com he is the only way to win the lottery and it is the best.
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