Decline in National Lottery Income inquiry
Closed
What the inquiry looked at
“The National Lottery launched in 1994. It raises money for good causes across the UK, including the arts, sports, education and the environment. The National Lottery is run by Camelot UK and overseen by the Department for Digital, Culture, Media and Sport. Lottery funding is distributed by 12 public bodies. Since April 2016, lottery distributors have been concerned about a fall in Lottery income for good causes and the impact this could have on their future spending commitments. As a result of these concerns, the National Audit Office investigated trends in lottery funding from 2004 to 2017, and the impact this has on good causes. The National Audit Office investigation found that, whilst Lottery income increased from 2004 to 2016, it fell in 2016-17 by 15% (April to April). Camelot anticipates a further fall in income for 2017-18. Concurrently, increases in Camelot’s profits have been proportionately greater than increases in both Lottery sales and returns for good causes. Although distributors are receiving more information to help them manage their funding of good causes, there are still concerned that they do not get all they need. The Public Accounts Committee will ask the Department for Digital, Culture, Media and Sport, The Gambling Commission, Camelot and the Big Lottery Fund about how they can manage lottery income in future, their assessment of its impact on good causes, and how to ensure distributors know all they need to fund good causes responsibly.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
Since 2012, Camelot has made profits well in excess of what was envisaged in the original 2009 licence, whilst returns for good causes have dropped, by 15% in 2016–17 compared to the previous year. The Gambling Commission did not include a reopener or break clause in the 14-year contract. This means that the terms of the contract can only be changed with Camelot’s agreement. Camelot’s profits were 122% higher in 2016–17 than in 2009–10. The drop in returns for good causes was because more players bought scratch cards, whilst sales of draw based games, with higher returns to good causes, declined. In the context of falling income for good causes, the Department needs to be wary of the risk that Lottery funding programmes become unaffordable. It also needs to give lottery distributors better data on lottery sales so that the distributors are better placed to plan their grant programmes. The Department, Camelot and the Lottery distributors all need to work together to better publicise the benefits to good causes as part of efforts to reverse the recent decline in sales.
What the government said
No government response is linked to this report.
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 19 December 2017 to 15 March 2019.
- Oral evidence 24 Jan 2018
- Report 5 Apr 2018
- Correspondence 2 letters
What it recommended
The committee's recommendations are not listed here yet. Read them in 31st Report - The future of the National Lottery ↗ on parliament.uk.
Evidence
Oral evidence sessions 1
- 24 Jan 2018No witnesses recordedparliament.uk ↗