A consortium involving An Post and the company behind the UK lottery has successfully bid 405 million euro to run the National Lottery.
Premier Lotteries Ireland, a group made up of the Ontario Teachers Pension Plan, owner of Camelot, An Post and An Post pension funds has been selected to take over the licence after tabling the highest offer.
It will operate the prize fund for 20 years.
Brendan Howlin, Minister for Public Expenditure and Reform, said just shy of two thirds of profits after prizes will go to good causes.
The 405m euro licence fee will be paid in two equal instalments, the first when the licence is signed in December and the second when Premier takes up the licence.
Mr Howlin said he was satisfied with the outcome of the bidding competition.
Under plans for the country's new children's hospital, to be built at a site at St James' in Dublin city, money from the sale of the licence will part fund the long-awaited development.
Premier is teaming up with An Post, the parent company of the An Post Irish National Lottery Company, and Camelot which has operated the UK National Lottery since 1994.
Discussions on finalising the terms of the licence will commence shortly between the Department of Public Expenditure & Reform and Premier Lotteries and end in November.
The deal is expected to be signed in December and the new licence will run from October next year.