The umbrella group for independent traders RGdata has written to Minister for Public Expenditure Brendan Howlin seeking assurances that retailers' commission on lottery products will not be cut under the new licence.

The move comes amid speculation that Premier Lotteries Ireland, the Government's preferred bidder for the licence, may attempt to renegotiate elements of the permit which have still to be finalised in an attempt to recoup some of the €405 million it has agreed to pay for the franchise.

'High price' for licence
While Mr Howlin has pledged to keep the existing 6 per cent margin paid to retailers who sell lottery products, this commission rate

was not laid down in the new lottery legislation.

In a letter to Mr Howlin, seen by The Irish Times, RGdata's director general Tara Buckley expresses concern that the "high price" paid for the licence will prompt the winning consortium, comprising An Post and UK operator Camelot, to seek changes to the operating terms.

"There is also speculation that the winning consortium may need to seek material alterations in terms of the licence for the National Lottery to justify what is recognised as the high price that was paid for the licence."

Mounting concerns
Ms Buckley said

there was real worry in the sector that retail agents and players would ultimately pay the price to fund the purchase of the licence.

Ms Buckley outlined several other worries including a possible reduction in amounts for prizes or good causes.

She also noted potential for reduced sales as a consequence of an increased price for lottery games, an issue on which Camelot has been criticised recently in the UK.

Among other concerns raised by RGdata were the likely effects of encouraging more online sales, which the new legislation provides for, and which some retailers fear will cannibalise a portion of high-street sales.

Ms Buckley urged Mr Howlin to ensure assurances to retailers “are not diluted”.