Govt to sell national lottery licence to camelot

Morlar

Govt to sell national lottery licence to camelot

Ok, not exactly but very close to what the govt are thinking of doing:

http://www.rte.ie/news/2012/0404/government-announces-changes-to-lotto-licence.html

Govt reveals terms for new 20-year licence to operate National Lottery

Updated: 15:08, Wednesday, 4 April 2012
The current National Lottery licence will expire in June 2013

The State hopes to raise hundreds of millions of euro by selling a licence to operate the lottery over a 20-year period.

The level of money for good causes will be maintained at 30% of lottery sales.

By selling the lottery licence over a 20-year period and seeking an upfront payment, the Government hopes to raise significant funds to put towards the National Children's Hospital.

There is considerable interest in the licence.

Camelot, which runs the UK lottery, said it welcomed today's announcement and was glad to hear the Government was moving forward.

Legislation detailing the proposals is due to be published by July and the Government aims to have it enacted by October.

Bids for the new licence, which is due to begin in July 2013, will be sought early next year.

An Post National Lottery Company is the holder of the current licence, which it won in a tendering process in late 2001.

The licence was due to end last year but the Government extended it until June 2013 in order to give them time to make changes to the licensing process.

Does anyone have faith the govt will do this in an efficient & effective manner which will be to the national benefit ?

Or, do you think they will fcuk it up comprehensively leaving the public drastically short-changed 'M50 toll bridge' style ?

My money is on 'they will fcuk it up comprehensively leaving the public drastically short-changed 'M50 toll bridge' style'.

donalg1

Sure thats their own business

G_R

Morlar wrote: »

Govt to sell national lottery licence to camelot

Ok, not exactly but very close to what the govt are thinking of doing:

http://www.rte.ie/news/2012/0404/government-announces-changes-to-lotto-licence.html

Govt reveals terms for new 20-year licence to operate National Lottery

Updated: 15:08, Wednesday, 4 April 2012
The current National Lottery licence will expire in June 2013

The State hopes to raise hundreds of millions of euro by selling a licence to operate the lottery over a 20-year period.

The level of money for good causes will be maintained at 30% of lottery sales.

By selling the lottery licence over a 20-year period and seeking an upfront payment, the Government hopes to raise significant funds to put towards the National Children's Hospital.

There is considerable interest in the licence.

Camelot, which runs the UK lottery, said it welcomed today's announcement and was glad to hear the Government was moving forward.

Legislation detailing the proposals is due to be published by July and the Government aims to have it enacted by October.

Bids for the new licence, which is due to begin in July 2013, will be sought early next year.

An Post National Lottery Company is the holder of the current licence, which it won in a tendering process in late 2001.

The licence was due to end last year but the Government extended it until June 2013 in order to give them time to make changes to the licensing process.

Does anyone have faith the govt will do this in an efficient & effective manner which will be to the national benefit ?

Or, do you think they will fcuk it up comprehensively leaving the public drastically short-changed 'M50 toll bridge' style ?

My money is on 'they will fcuk it up comprehensively leaving the public drastically short-changed 'M50 toll bridge' style'.

Honestly don't see how it could be fecked up tbh. Seems to be a pretty simple concept...

Seachmall

I would like to purchase this license, who do I need to speak to?

Dostoevsky

Seachmall wrote: »

I would like to purchase this license, who do I need to speak to?

Denis O'Brien?

Fighting Irish

Morlar wrote: »

Govt to sell national lottery licence to camelot

Ok, not exactly but very close to what the govt are thinking of doing:

:rolleyes:

Morlar

Fighting Irish wrote: »

:rolleyes

Wow, that's great ! You're so cool !!

Fighting Irish

Grand_Rajnah wrote: »

Honestly don't see how it could be fecked up tbh. Seems to be a pretty simple concept...

They made me take out a huge mortgage, and now i'm fooked, so they'll defo fook this up!!!!!1

ScumLord

As long as the charitable donations stay the same I don't really see any problem.

Fighting Irish

Morlar wrote: »

Wow, that's great ! You're so cool !!

:pac:

StupidLikeAFox

Fighting Irish wrote: »

They made me take out a huge mortgage, and now i'm fooked, so they'll defo fook this up!!!!!1

Did they really?

Fighting Irish

ColHol wrote: »

Did they really?

Well it was either them, the bankers or the developers, can't really make my mind up ha

Clegg

The license is going up for general tender so it doesn't automatically mean that Camelot will get it.

An Post could put in a bid for it.

Robbo

I await Joe Higgins telling us that the machines that spin the lottery balls are an important piece of national infrastructure and that there's going to be a race to the bottom with jackpots.

Morlar

Clegg wrote: »

The license is going up for general tender so it doesn't automatically mean that Camelot will get it.

An Post could put in a bid for it.

If company A can make more money out of it they will win it over company B. Company A can do a million little things to increase their profits, such as decrease the odds of you winning, increase the number of lottery balls, increase the number of draws, decrease the amounts in prizes, decrease the amount or percentage of profits going to charitable causes, cap prizes and so on and on and on. Ths is one of those times when the highest bidder is not necessarily in the national interest. We will get a bundle of cash upfront but this will be a licence to print money which will flow out of this country until the year 2033.

This is why states in America have very active and competent Lottery Commissions, same as UK has an active Lottery commission. Also they generally do not give away the licence for 20 years at a time as it kills competition. Irish govt's have a long history of myopic idiocy in decision making involving a 'big pile cash' reward, look at our national resources, fisheries to the eu, M50 toll bridge, mining rights and so on.

AboutTwoFiddy

ScumLord wrote: »

As long as the charitable donations stay the same I don't really see any problem.

That's not the way it works. Initially, when the lottery was set up a certain proportion was supposed to cover costs and the rest handed out to worthy costs. What actually happens is all the monies raised goes to the government and then they pick and chose who gets money.

Have no confidence in the government handling this, there'll be brown envelopes passing hands and it will be sold to the biggest crook/donator.

benway

Robbo wrote: »

I await Joe Higgins telling us that the machines that spin the lottery balls are an important piece of national infrastructure and that there's going to be a race to the bottom with jackpots.

Wouldn't it be better to keep the profits in this country though? Couple of hundred million up front for a license worth a hell of a lot more in the long run seems myopic to me.

Someone, please think of Stokes Kennedy Crowley.

mike65

Stupid misleading threadline.

PogMoThoin

If it's not costing the state and is making money why sell it? You have to remember this is keeping lots of jobs going. Will this change under privatisation? Will the profits be leaving the country?

Morlar

PogMoThoin wrote: »

If it's not costing the state and is making money why sell it? You have to remember this is keeping lots of jobs going. Will this change under privatisation? Will the profits be leaving the country?

If camelot win the licence that'll be a decision for their shareholders.

PogMoThoin

Morlar wrote: »

If camelot win the licence that'll be a decision for their shareholders.

Exactly, so the Government needs to consider whether the sale is good for this country and not just a cash in.

Morlar

PogMoThoin wrote: »

Exactly, so the Government needs to consider whether the sale is good for this country and not just a cash in.

Well that's the question - do you have faith in this govt to do that ? Take a long look at their track record of negotiating on the national interest. Consiider also that this is a 20 yr licence, practically unheard of, it seems in this case purely to increase the short term cash flow. Even camelot in the uk were under absolute govt scrutiny for the entire duration of their licence and were made to part fund the olympics out of it.

The only good news in this is that the greens are no longer a factor : "Increase the ticket-prices up the profit margins so long as those balls are bio-degradable."

WoollyRedHat

Keeping in concept with the Lottery, they should award the licence to the next winner.

Kidchameleon

Do you reckon Camelot will decrease the odds of winning? Do you ever see their equivalent to winning streak with Dale Winton, the prizes are completely ****e, the Irish one dwarfs it.

I can see this being a bad thing for people who enjoy playing lotto.


(in before lotto tax on stupidity etc etc)

Adyx

mike65 wrote: »

Stupid misleading threadline.

You read it as cameltoe too?

Morlar

Adyx wrote: »

You read it as cameltoe too?

'Camel-Lottoe' ♫

Not that misleading after all.

Xenophile

We do not need An Post getting involved wasting tax payers money on their own efforts and that of consultants and advisers.

No way should An Post be involved in competing with private enterprise and this also includes competing with newsagents selling greeting cards.....................! The newsagent is not subsidized and cannot afford losses. Is there any way that An Post can be told to get more efficient at delivering mail at a cheaper price, or are we going to pay for this by way of unnecessary expense.

drunkmonkey

This little nugget.

"According to the Minister, there will be a competitive process and the fixed percentage of 30.5pc of annual turnover for good causes will be retained under the new licence"

You could turnover €1 million this year. You make a profit of €50,000 after the cost of business. That's how a normal business works.

With this you give the Government €400 million up front and €305000 a year for every €1 million of Turnover.

Am I the only one not getting how insane this is to an investor. €400 million buys a lot of Mc Donald's.

bnt

Morlar wrote: »

Does anyone have faith the govt will do this in an efficient & effective manner which will be to the national benefit ?

That's a trick question, right?

Nothing about a National Lottery is to the "national benefit". It is a "zero-sum game". It does not create any wealth, it merely redistributes it. Money leaves the pockets of the people buying tickets, and lands in the pockets of the winners, the government, and the operator. From there it goes, in varying proportions, to charities, shareholders, employees, and the usual government tax uses. No more money is created at any point in the process.

If you want a charity to benefit, then give money to that charity. If everyone did that, the charities would get more than they get from a lottery, since there would be no "middlemen" slicing a chunk off it.

micropig

Dostoevsky wrote: »

Denis O'Brien?

I will eat my hat if it turns out he's not going to be involved somehow in this

Joko

drunkmonkey wrote: »

This little nugget.

"According to the Minister, there will be a competitive process and the fixed percentage of 30.5pc of annual turnover for good causes will be retained under the new licence"

You could turnover €1 million this year. You make a profit of €50,000 after the cost of business. That's how a normal business works.

With this you give the Government €400 million up front and €305000 a year for every €1 million of Turnover.

Am I the only one not getting how insane this is to an investor. €400 million buys a lot of Mc Donald's.

It would be very easy for an investor to make loads from this, all they have to do is make the odds of winning a jackpot harder.