Irish retailers are worried that a transition to a new lottery system may disrupt trade and involve additional costs, according to a report in The Irish Times.
Premier Lotteries Ireland (PLI), who operates the National Lottery, is due to introduce a new technology platform later in the year which will necessitate the replacement of around 4,000 ticket terminals in retail outlets.
The National Lottery is big business in Ireland, with over half of the country's population playing at least one of the National Lottery games on a regular basis. Numerous prize draws and games are on offer every week and the majority of tickets for these draws and games are sold in retail outlets such as supermarkets and convenience stores. Retailers have ticket terminals installed in their stores and earn 6-per-cent commission on ticket sales. They also receive money if they sell a winning ticket.
According to the paper, the umbrella group for retailers, RGData, is concerned about the transition and had previously sought assurances with regard to the potential disruption and additional costs associated with the new system. It also queried whether there was a contingency plan in the event of technological problems and voiced retailers' concerns that the availability of lotto tickets on-line will affect their traditional sales.
In response, PLI said that it was very aware of its commitments to retailers in terms of their commission under the new lottery licensing arrangements and pledged to keep them updated during the transition.
However, RGData was unhappy with the response it received and again wrote to PLI to seek further clarification. Tara Buckley, director-general of RGData said that the National Lottery is, "an important part of the business of RGData members and, as such, there is a concern and a need for assurance from Premier Lotteries Ireland about how the change in ownership will impact on the operation of the National Lotteries in the coming years."
The new hardware and software is to be overhauled by the Greek firm Intralot. The new terminals will be installed in retailers across the country and when this is completed there will be a 'big switch-on' before the end of the year.
© 2014 European Supermarket Magazine – Europe’s grocery retail magazine, for all your breaking supermarket, convenience store and FMCG news. Article written by Nicole Gernon
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