An Post National Lottery Company has won the seven-year licence, worth £2.3 million (€2.9 million) a year, to operate the National Lottery.

Three applications were received for the licence. Autotote Lottery Corporation, a Co Longford-based company, and Sisal, which has a subsidiary firm in Westmeath, were the other two bidders for the licence.

However, Autotote withdrew from the selection process in December, followed by Sisal in January. This left An Post, the holder of the licence, as the only bidder.

The Department of Finance sought legal advice on the procedure to be followed and it was decided that the sole applicant should be assessed in accordance with the terms of the competition.

The application was evaluated by consultants Deloitte & Touche and led to renewal of An Post's licence by the Minister for Finance, Mr McCreevy. The licence issue had previously proved controversial when the Government was forced to extend it.

An Post has held the licence since 1986. Originally the contract was scheduled to run for 10 years but this was extended in 1992.