Retailers seek ‘loyalty payment’ of €15,000 from lotto firm

Retailers are hoping to cash in on the State’s lottery privatisation by seeking a once-off “loyalty” payment of €15,000 each from the incoming operator.

The umbrella group for independent traders RGDATA has written to the winning consortium, Premier Lotteries Ireland, seeking the payment in recognition of the role played by its members in growing the business. On the basis that there are about 1,500 independent retailers operating in the State, the proposal would cost Premier Lotteries about €22.5 million, on top of the €405 million it has already agreed to pay the Government for the licence.

Success
In the letter, seen by The Irish Times, RGDATA's director general Tara Buckley said: "It would seem only fair that if the staff of the National Lottery and the new operators of the lottery are in line for a significant return on the new investment, the retail agents, who play such a central part in the success of the lottery should also be recognised."

She stipulated, however, that the proposed payout to retailers could not come from the players’ prize pot, contributions to good causes or from the retailers’ commission, which are guaranteed under the terms of the new contract.

Ms Buckley’s letter appears to have been prompted by a report in this newspaper that National Lottery staff are seeking a “recognition payment” as part of the transfer arrangements. Although no figure has been attached to the golden handcuff claim, it is being sought by workers in recognition of the work done to bring the business to the point where the Government is likely to profit from its sale.

In her letter, Ms Buckley said there were concerns among retailers at the delay in the signing of the contracts to operate the licence.

The sale of the State franchise to Premier Lotteries, which comprises An Post and UK operator Camelot, was to have concluded in December. However, it was delayed by a dispute over the proposed transfer of staff to the new operator. Last week, a crunch union vote on Labour Relations Commission proposals aimed at breaking the impasse ended in deadlock. The issue was referred to the Labour Court which is due to make recommendations as soon as today.