The National Lottery Fund was established under the National Lottery Act 1986 and continues under the National Lottery Act 2013 as a single account held with the Central Bank of Ireland. The Fund is managed and controlled by the Regulator.
Each week the Regulator reviews the Operator’s “weekly settlement report” of sales of National Lottery tickets regarding each scratch card, draw based game, and online instant win game. Checks are performed regarding the amounts allocated to prizes, good causes, retailers, and the Operator. The Office of the Regulator of the National Lottery also cross-references this financial information with real-time data from the Operator’s gaming system.
These weekly checks form part of a broader system of control to ensure that the revenues raised from the sale of National Lottery tickets, the amount going into prizes, the amount going to good causes and the percentage going to retailers, are all accounted for correctly.
The Regulator receives monies from the Operator for sales of National Lottery tickets each week, less prizes paid out by retailers in the week and retailers’ commissions, and makes the appropriate payment to the Operator’s Prize Fund Account, to the Operator’s own operating account and for the Regulator’s levy. Amounts for good causes from the sales of National Lottery tickets are retained in the Fund each week by the Regulator and transferred to the Exchequer every two months. An annual adjustment is performed to reflect the difference between the actual prizes that were won in the previous financial year compared to the amounts that were expected to be needed to pay prizes.
Weekly movement of monies in and out of the National Lottery Fund
The following steps are followed on a weekly basis, in accordance with the terms of the Licence:
STEP 1
The Operator lodges to the Fund the total amount of ticket sales net of retailers' commissions and of small prizes paid by retailers.
STEP 2
The Regulator transfers from the Fund to the Operator the amount in respect of prizes, other than small prizes, for the week.
STEP 3
The Regulator reserves in the Fund the amount in respect of Good Causes.
STEP 4
The Regulator transfers the amount due in respect of the Regulator's levy.
STEP 5
The Regulator transfers the remaining amount in respect of the week to the Operator.
Bi-monthly transfer from the National Lottery Fund to the Exchequer
The amounts for good causes retained in the Fund each week are transferred by the Regulator to the Exchequer every two months. The frequency of transfers is set by the Minister for Public Expenditure, NDP Delivery and Reform.
Annual adjustment
On an annual basis, in arrears, an adjustment is made to reflect the difference between the actual prizes that were won in the previous financial year compared to the amounts that were expected to be needed to pay prizes that were transferred to the Prize Fund Account during the year. This can result in an increase or decrease in amounts transferred to the Exchequer for good causes, depending on whether the prizes won were lower or higher than the statistically expected value.