An Post National Lottery Company
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An Post National Lottery Company (Irish Comhlacht Chrannchur Náisiúnta An Post) is the company which has the licence of "the National Lottery" (Irish: "an Crannchur Náisiúnta") of the Republic of Ireland. The company was founded by its parent company An Post under a licence issued by the Minister for Finance under the National Lottery Act, 1986. The running of the lottery games, is handled by a contractor, GTECH Ireland, a wholly owned subsidiary of GTECH Corp, listed on New York Stock Exchange as GTK.
The company is owned jointly by An Post (20%) and the Minister for Finance (80%). Ray Bates, who directed the National Lottery since its inception in 1987, retired from the company in early 2006. His former chief operating officer, Dermot Griffin, succeeds him as National Lottery director.
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[edit] Background
The Irish Sweepstakes and Rehab Lotteries also entered the tender process in 1986, but were unsuccessful. An Post obtained the licence and commenced operations in 1987. An Post has retained the licence in every bid process since then, and will retain the current licence until December 31, 2008 unless the Minister for Finance revokes the licence before that time.
[edit] Finances
The "National Lottery Fund" is an account kept at the Central Bank of Ireland. It is used to fulfill the primary objective of the company, which is the funding of good causes. The surplus is paid to the account annually, and the funds are distributed both to private and public projects by the Minister for Finance.
In 2005, the National Lottery raised €203.2 million (euro) for distribution by the government to good causes, bringing the total raised since the inception of the Lottery to €2.4 billion. Total sales during 2005 were €616.4 million, up 6.6% on 2004. A total of €324.8 million was distributed as cash prizes. This does not include the €115 million EuroMillions prize won in Ireland in July 2005, which was funded from a central European pool.
The company's operating costs in 2005 represented 14.2% of sales, or €88.4 million, which includes €38.3 million paid to retail agents in commission and bonuses. The company employs 37 full-time staff in marketing and distribution, and 44 full-time staff in administration.
[edit] Games
National Lottery games began in March 1987 when the company launched its first scratchcards. Since then, the National Lottery has expanded its games to include lottery drawings, television bingo, and television game shows. The Lotto family of games -- Lotto, Lotto Plus, and Lotto 5-4-3-2-1 -- accounted for 61% of sales in 2005, while instant scratchcard games accounted for 26% of sales. All prizes won in National Lottery games are paid as tax-free lump sums.
[edit] Lotto
Lotto is the National Lottery's flagship game. Its matrix, which began as 6/36 in 1988, has been changed three times in its history, and is presently 6/45.
[edit] Lotto 6/36: 1988-1992
Lotto began in April 1988 as a 6/36 lottery. Every Saturday night at 20:00, on live Radio Telefís Éireann television, six numbered balls were drawn randomly from a drum containing thirty-six balls. Players could win by matching four, five, or six of the drawn numbers. If more than one ticket bore the winning combination, the jackpot was shared equally among the winning tickets. If no winning ticket was sold, the jackpot rolled over for the next draw. In May 1990, the National Lottery introduced a midweek Lotto draw on Wednesday nights at 20:00.
In a 6/36 lottery, the odds of matching all six numbers and winning the jackpot are 1 in 1,947,792. At an initial cost of £0.50 Irish punt (€0.63 euro) for each six-number combination, all possible combinations could be covered for £973,896 (€1,236,848). When the jackpot reached £1.7 million (€2.1 million) for the May bank holiday drawing in 1992, a 28-member Dublin-based syndicate organized by 43-year-old half-Polish businessman Stefan Klincewicz attempted to buy up all the possible combinations, thus guaranteeing a jackpot win. Klincewicz's team had spent six months marking paper playslips, preparing for the "sting."
Although the National Lottery attempted to foil the plan by introducing a limit on the number of tickets any machine could sell, and by switching off terminals Klincewicz's team of ticket purchasers were using heavily, the syndicate did have the winning numbers on the night. However, two other winning tickets were sold, so the syndicate claimed only one-third of the jackpot, or £568,682 (€722,226). Many smaller match-5 and match-4 prizes brought its total winnings to approximately £1,166,000 (€1,480,000), representing only a modest profit after expenses. Klincewicz appeared on the popular talk show Kenny Live and capitalized on his short-lived notoriety with a popular self-published lottery-system book entitled Win the Lotto.
[edit] Lotto 6/39: 1992-1994
To prevent such a scheme from recurring, the National Lottery changed Lotto to a 6/39 game in August 1992, raising the jackpot odds to 1 in 3,262,623. To compensate for these longer odds, the company added a "bonus number" to the drawings. Whereas players previously needed either a match-4, match-5, or match-6 to win, prizes were now also awarded for match-5+bonus, match-4+bonus, and match-3+bonus.
[edit] Lotto 6/42: 1994-2006
In September 1994, Lotto became a 6/42 game, which made the jackpot odds 1 in 5,245,786. The National Lottery made this change to generate bigger rollover jackpots, partly so people living near the border with Northern Ireland would not forsake Lotto for the bigger jackpots on offer in the 6/49 British National Lottery, which began operations in November 1994. At this time, the National Lottery introduced computer-generated "quick picks" as an alternative to marking numbers on paper playslips. Some smaller retailers now only offer the quick-pick option.
In 1998, the cost of Lotto rose from £0.50 to £0.75 per line of six numbers. With the introduction of the new euro currency on January 1, 2002, the cost became €0.95, and was shortly thereafter rounded to €1.
[edit] Lotto 6/45: 2006-
In November 2006, the National Lottery changed Lotto to a 6/45 game, raising the jackpot odds to 1 in 8,145,060. It also made the starting jackpot a guaranteed €2 million (up from €1.35 million), increased the match 5+bonus prize to €25,000 (up from €12,000), introduced a €5 match-3 prize, and increased the price of a line of Lotto to €1.50 (the minimum play is two lines). The company said the new changes should produce about twenty Lotto jackpots of €5 million and over each year, and at least one jackpot over €10 million. The National Lottery claimed it was responding to market research that suggested that the rate of inflation over the past decade, particularly in the cost of homes, had left Irish people wanting higher Lotto jackpots.
The changes were implemented on November 2, 2006. The first 6/45 Lotto draw was held on November 4, 2006, for a rollover jackpot of €3,205,112 (there was no winner). The National Lottery also changed the presenter of its televised Lotto draw: Ronan Collins, who had presented more than two thousand draws since 1988, was replaced by Laura Woods.
However, the Consumers’ Association of Ireland criticized the 50% increase in the price of Lotto, noting that game's minimum play of €3 per ticket now makes it one of the world's most expensive lotteries. By comparison, Euromillions costs €2, Britain’s National Lottery costs £1 (€1.50), and the Powerball and Megamillions American lotteries can be played for $1 (€0.80).
[edit] Record jackpots
In November 1996, the Lotto's largest ever jackpot of £7,486,025 (€9,507,251) was split between two winning tickets, one bought by Mary and Paddy Kelly from Bailieborough in County Cavan, and the other by an anonymous seven-member syndicate from County Meath. The largest Lotto prize ever claimed by a single individual is £6,216,048 (€7,894,381), won in May 1997 by a married County Cork farmer in his late thirties. The winner requested that the media not publish his name.
The largest unclaimed Lotto jackpot is £2,713,334 (€3,445,934). The one winning ticket for the June 30, 2001 drawing was sold in Coolock, Dublin, but its holder failed to come forward before the ticket expired at the close of business on September 26, 2001.
Sales of Lotto were €262.6 million in 2005. €131.3 million was paid out in prize money.
[edit] Lotto Plus
In October 2000, the National Lottery introduced Lotto Plus. For an extra £0.25 per combination, players could enter their main Lotto numbers in an additional 6/42 "Lotto Plus" drawing for a fixed jackpot of £250,000 (€317,500). In 2002, when a third 6/42 drawing was added (the two extra drawings were now named Lotto Plus 1 and Lotto Plus 2) the cost of Lotto Plus was raised to €0.50 per combination and the jackpots were fixed at €300,000 and €200,000 respectively. Lotto Plus jackpots do not roll over.
In November 2006, when Lotto and Lotto Plus adopted a 6/45 matrix, the Lotto Plus 1 and Lotto Plus 2 jackpots were raised to €350,000 and €250,000 respectively. The cost of Lotto Plus remained €0.50 per line. The minimim play is two lines, so the minimum wager to play Lotto with Lotto Plus is now €4.
As with the main Lotto game, Lotto Plus players can win smaller prizes for match-5+bonus, match-5, match-4+bonus, match-4, match-3+bonus. For a match-3 in Lotto Plus 1, the winner receives a €3 scratchcard; a match-3 in Lotto Plus 2 wins a €1 scratchcard.
Sales of Lotto Plus were €103.6 million in 2005. Approximately 80% of Lotto players now choose the additional Lotto Plus option.
[edit] Lotto 5-4-3-2-1
Based around the main Lotto draw, Lotto 5-4-3-2-1 allows players to win prizes by correctly matching one, two, three, four, or five of the drawn numbers. The more numbers players try to match, the greater the prize. Players may base their choices either on a six-number game (excluding the bonus number) or on a seven-number game (including the bonus number). Somewhat of a niche game, Lotto 5-4-3-2-1 accounted for €11 million in sales in 2005.
[edit] EuroMillions
The National Lottery has participated in the transnational EuroMillions lottery since October 2004. Initially slow to take off in Ireland, EuroMillions experienced a 40% jump in ticket sales after Limerick woman Dolores McNamara won over €115 million on July 31, 2005.
On November 17, 2006, two Irish winners each received one-twentieth of an unwon €183 million jackpot when it was divided under the draw's 12-week rollover rule among all players who got five numbers and one lucky star. The winners received €9.6 million each. One winning ticket was purchased in Limerick and the other in Cork.
A EuroMillions ticket costs €2, and the draw takes place each Friday night at approximately 21:30 Irish time. Irish players must purchase their tickets before 19:30 Irish time. Tickets may be purchased in advance for up to four draws.
Sales of EuroMillions reached €59.1 million in 2005.
[edit] Telly Bingo
Telly Bingo players buy tickets with 24 randomly generated numbers, and can win prizes by matching the numbers drawn on a lunchtime TV show in a variety of patterns, with a prize of €10,000 going for a full house. An additional €10,000 Snowball prize goes to someone who achieves a full house on or before the 45th number drawn; if not won, the Snowball prize rolls over to the next draw. Telly Bingo sales amounted to €18 million in 2005.
[edit] Instant Scratchcard Games
The National Lottery had a total of 21 scratchcard games on offer during 2005, ranging in price from €1 to €5, and offering instant cash prizes up to €25,000. Total sales of instant games amounted to €160.6 million in this year. €95.4 million was paid out in prizes.
[edit] Game shows
The National Lottery funds two televised game shows, Winning Streak and Fame and Fortune. Contestants become eligible by getting three "lucky stars" on associated scratchcards and submitting these scratchcards in special envelopes for a live televised drawing. The gameshows feature simplistic money-oriented games played before vigorous audience participation. These game shows paid out a total of €9.9 million in prizes during 2005.
[edit] See also
- Waking Ned — a comedy film based on the fictitious winner of the Lotto.
