National Lottery sales increased by their highest level in 15 years to a record €679.1 million - an increase of 10.2 per cent.
The National Lottery annual report for 2006 published today shows outlay on an average of 80,000 prizes daily increased by around 11.5 per cent to €362.1.
The figure excludes the top two EuroMillions winners who were paid from the consolidated European Prize Pool.
The amount of money paid out to good causes rose by around 7 per cent to €217.5 million.
Operating costs increased marginally to 14.6 per cent of sales, mainly due to the increase in agent's commissions and bonuses because of the increase in sales.
National Lottery Director Dermot Griffin said: "Changes in the Lotto game in November ensured that there will be larger jackpots more regularly and that our players will win more prizes.
"This was the first major change to the Lotto game in twelve years and provides an exciting platform for future growth."
EuroMillions continued its strong growth last year with rising to €145.3 million €59.1 million.
Scratchcard games remain second to Lotto as the second major earner at €157.4 million in sales with 62 per cent of thier value paid out in prizes.