The Battle for the Jackpot: Will the ‘Secondary Market’ in Lottery Betting Vanish?
For years, a quiet tension has existed between official lottery operators and the bookmaking industry. While the National Lottery focuses on funding “quality causes” like the arts and sports, a parallel economy—the secondary market—has flourished in betting shops and online platforms.
Currently, this practice operates in what National Lottery chief executive Cian Murphy describes as a “grey zone,” where betting on lottery draws is neither explicitly legal nor illegal. However, the tide may be turning as the operator pushes for a formal ban to protect its revenue and social contributions.
The High Cost of the ‘Grey Zone’
The financial implications of allowing bookmakers to take bets on lottery draws are staggering. According to research cited by the National Lottery, the secondary market is estimated to be only slightly smaller than the actual draw itself.
Data from a socioeconomic impact report by consultancy firm Indecon highlights several critical losses resulting from this regulatory gap:
- Annual Sales: The National Lottery estimates This proves losing approximately €289 million in annual sales.
- Good Causes: In 2024, the operator suggests that without the secondary market, an additional €81 million could have been contributed to sports and the arts.
- Retail Impact: Retailers have seen a sales drop of about €238 million, which has led to the loss of 1,929 supported jobs.
- State Revenue: The exchequer has lost roughly €12.7 million in revenue.
Beyond the numbers, there is a behavioral shift. Research suggests that 35 per cent of players would choose to play the lottery “properly” if the option to bet via bookmakers was removed.
Future Trend: The Digital Gambling Surge
The rise of online gambling is acting as a catalyst for this conflict. As operators invest more in digital products and promotion, the secondary market is poised for even greater expansion.
Industry experts anticipate that if the government does not move to close the “regulatory gap,” the shift toward online lottery betting will accelerate. This would further undermine the value of the lottery licence, which Premier Lotteries Ireland estimates is currently between €118 million and €250 million lower than it would be in a regulated environment.
The Legislative Path Forward
The push for a ban is not novel. Previous legislative efforts were introduced in 2018 by Jim O’Callaghan, the current Minister for Justice. The National Lottery maintains that legal routes to ban these bets are “robust,” regardless of whether the government chooses primary legislation or regulatory changes.
Retail Evolution and Economic Stability
If a ban is implemented, the immediate winner would be the network of official lottery retailers. With sales through retailers sitting at about €700 million in 2024, a recapture of the secondary market could revitalize local shops and restore thousands of jobs.
However, the transition may not be seamless. Bookmakers will likely fight to preserve these products, arguing that they provide a different type of gambling experience. The outcome will depend on whether the government prioritizes the “good causes” model over the private profits of the betting industry.
Frequently Asked Questions
What is the ‘secondary market’ in lottery betting?
The secondary market refers to bookmakers (both physical shops and online platforms) that allow customers to place bets on the outcome of the National Lottery draws, rather than buying an official ticket.
Why does the National Lottery want this banned?
The operator argues that it undermines sales, reduces the funding available for “good causes” like the arts and sports, and negatively impacts retail jobs and state revenue.
Is lottery betting legal in Ireland?
According to National Lottery CEO Cian Murphy, it currently exists in a “grey zone”—it is not explicitly legal, nor is it explicitly illegal, but it has been tolerated until now.
How does this affect the funding of sports and arts?
Given that bookmaker bets do not contribute to the lottery’s prize fund or community grants, the operator estimates that millions of euros are diverted away from public funding every year.
Join the Conversation
Do you think bookmakers should be allowed to take bets on the National Lottery, or should the funds go exclusively to good causes? Let us know your thoughts in the comments below!
