Conclusion 1
Concluded (the committee's words)We are disappointed that Camelot chose not to make itself available for scrutiny of its performance as the National Lottery operator.
Select committee: Digital, Culture, Media and Sport Committee
What next for the National Lottery?
Closed
Opened 21 Jul 2021
Closed 13 Mar 2023
9 recommendations
14 conclusions
Digital, Culture, Media and Sport Committee Inquiry on parliament.uk ↗
Inquiry scope (the committee's words)
Our inquiry examines the competition process to award the next licence for operating the National Lottery. The Gambling Commission is running the competition. The committee will also scrutinise the preferred applicant as well as the process that was involved.
Where it stands
The inquiry is closed, opened 21 July 2021.
The committee has published 1 report, most recently Fourth Report - What next for the National Lottery? on 22 November 2022.
The government's response
Seventh Special Report - What next for the National Lottery?: Government and Gambling Commission Responses to the Committee’s Fourth Report
Published 10 March 2023. The deadline was 3 March 2023.
Twelfth Special Report - What next for the National Lottery?: National Lottery Distributors’ Response to the Committee’s Fourth Report
Published 23 October 2023.
Summary written by Accountability Index from the government's response. It is not the government's own words.The 12 National Lottery Distributors say they "welcome the Committee's focus on grant acknowledgement" and set out the changes each has "committed to" in response to Recommendation 9.
- The Distributors state they "have taken on the committee's recommendation to consider" how recipients can more effectively ensure beneficiaries know the source of funding.
- The National Lottery Community Fund says all new £1m+ grant holders "will now be provided a communications protocol" setting out expectations over the life of their award.
- Arts Council England is "currently reviewing" its grant terms and conditions to introduce scaled acknowledgement requirements, and its relationship work "could include" consequences for non-compliance.
- Arts Council Wales says it will announce a new group of multi-year funded organisations in April 2024, aligned with a re-branding exercise.
Recommendations and conclusions
- Conclusion 1Conclusion
- Conclusion 2Conclusion
- Conclusion 3Conclusion
Reports
- Fourth Report - What next for the National Lottery?22 November 2022 · 23 items
Evidence
- 4 oral evidence sessionsLatest 30 June 2022
- 12 witnesses
Recent activity
- Twelfth Special Report - What next for the National Lottery?: National Lottery Distributors’ Response to the Committee’s Fourth Report23 October 2023, Report published
- Seventh Special Report - What next for the National Lottery?: Government and Gambling Commission Responses to the Committee’s Fourth Report10 March 2023, Report published
- Omaze response to the Committee’s What next for the National Lottery? Report, 20 January 202331 January 2023, Correspondence
Recommendations and conclusions 23 shown
Conclusion 2
Concluded (the committee's words)The Gambling Commission has followed its predecessors in overseeing a poorly managed competition, and we are concerned by reports of up to £600 million in compensation being taken from the good causes budget.
Conclusion 3
Concluded (the committee's words)The Gambling Commission must vigilantly monitor Allwyn’s good cause returns to ensure that fund distributors are not once again short-changed.
Conclusion 4
Concluded (the committee's words)The Gambling Commission should, within six months of the licence process being complete, review its licence competition design process, highlighting areas of failure, and report back to the Committee with its findings. This should include an assessment of changes necessary to transparency and confidentiality rules to facilitate greater parliamentary oversight of the next licence competition.
Conclusion 5
Concluded (the committee's words)The fine imposed against Camelot earlier this year regarding the National Lottery’s inappropriate targeting of vulnerable consumers is concerning enough in isolation, and more so when considered alongside concerns raised by gambling harms experts that such targeting is being used to push forms of gambling that may be more harmful, and which return less funding to good causes.
Conclusion 6
Concluded (the committee's words)The Lottery operator and Gambling Commission should collect and share player data with the public, in order to enable independent research into the users of the National Lottery and the potential harms faced by different demographics. This should include frequency of play, types of game played and money spent, as well as demographic data.
Recommendation 7
Recommended (the committee's words)We recommend that the Gambling Commission commissions research into the gambling harms of National Lottery advertising and marketing, including any personalisation that may lead to the promotion of higher-risk products to vulnerable players. We would expect that to occur within the next six months and for the Committee to then be kept up to date on the details of the research and its findings and policy changes that will result from it.
Conclusion 8
Concluded (the committee's words)We think that any operator should, by default, meet the Gambling Commission’s suggested donation to GambleAware, and have an ambition to go beyond that. We will reassess this issue following the publication of the gambling White Paper.
Conclusion 9
Concluded (the committee's words)While it is clearly the case that the National Lottery poses significantly fewer gambling harms than many other forms of gambling, to play a National Lottery game is undeniably gambling, which the National Lottery operator should bear in mind. Including GambleAware branding on National Lottery products would serve 36 What next for the National Lottery? two discrete but connected purposes. First, it would signpost to National Lottery players the avenues to go down should they begin to suffer gambling harms from National Lottery products. Secondly, as 44% of people play the National Lottery, it would also massively increase the visibility of GambleAware, making players more likely to contact the service should they or someone close to them begin to suffer gambling harms from other forms of gambling.
Recommendation 10
Recommended (the committee's words)We recommend that, with immediate effect, all National Lottery products should carry GambleAware branding.
Recommendation 11
Recommended (the committee's words)We recommend that the Gambling Commission carries out an evaluation of the effectiveness of delivering the stated objectives of money raised through fines and given to third parties. This evaluation should then be published along with all relevant metrics and data.
Conclusion 12
Concluded (the committee's words)Exemptions within the ban on gambling on credit are ill thought through and subject to discretion. While the original ban goes most of the way to preventing this form of gambling harm, opt-outs for retailers maintain the possibility for those at risk of gambling harms to gamble on credit.
Recommendation 13
Recommended (the committee's words)We recommend that this loophole, which allows consumers to continue to gamble using credit cards, should be closed as soon as practicable, following discussions with retailers.
Conclusion 14
Concluded (the committee's words)We congratulate moves by Arts Council England to rebalance funding across the UK and remain interested in how wider aims to facilitate access to arts and culture might be aligned with the Government’s levelling up agenda. National Lottery- funded organisations and projects could assist in offering opportunities that improve the lives and life chances of people across the UK.
Recommendation 15
Recommended (the committee's words)We recommend that the Government continues to ensure greater alignment between its investment priorities into areas of high economic or social deprivation and the distribution priorities of National Lottery fund distributors.
Conclusion 16
Concluded (the committee's words)We await the publication of the evaluation of the Culture Recovery Fund and hope that the Department is able to use it as the foundation for future crisis planning. There is otherwise no guarantee that the admirable response of National Lottery distributor bodies is replicable in the future.
Conclusion 17
Concluded (the committee's words)Public awareness of the link between the National Lottery and funding for good causes remains lower than it should be. This risks the public losing sight of the National Lottery’s original purpose, to raise money for good causes, and instead focusing on the prizes on offer, which could lead to public calls for a reduction in good cause returns in order to boost prizes.
Recommendation 18
Recommended (the committee's words)We recommend that a clear majority of National Lottery product advertising should prominently feature the link between playing the National Lottery and supporting good causes.
Recommendation 19
Recommended (the committee's words)We recommend that, over the next six months, the distributing bodies consider how they might more effectively ensure that recipients of funding ensure that those benefitting from that funding are aware of the source of their funding. We would like to receive a report from the National Lottery Distribution Fund to inform us of changes to be made.
Conclusion 20
Concluded (the committee's words)We do not consider that society lotteries pose a threat to the charitable giving of the National Lottery, in line with the views of the Gambling Commission and the Department. Recent years have seen significant reforms to society lottery regulation that have allowed total sales and good cause returns to reach record levels at the same time as the National Lottery achieved record sales.
Recommendation 21
Recommended (the committee's words)We recommend that the 10% rule for society lotteries should be removed, instead allowing individual society lotteries to set their own prizes, up to a limit of £500,000.
Conclusion 22
Concluded (the committee's words)It is difficult to understand why the National Lottery has been so hostile towards society lotteries while largely ignoring prize draws. It merits further investigation as to whether prize draws, with such large revenues and little regulation, are competing for ticket sales with the National Lottery and the wider lottery sector, potentially significantly reducing the money returned to good causes as a result.
Recommendation 23
Recommended (the committee's words)We recommend that prize draws be subject to regulation such as that which applies to society lotteries, including on the percentage of sales that must be donated to good causes. We hope that the upcoming gambling White Paper will provide detail on the Government’s plans in this area.
Reports
Fourth Report - What next for the National Lottery?
- HC No.
- HC 154
- Published
- 22 Nov 2022
- Items
- 23
- Government response
- Government response published 10 March 2023 (deadline 3 March 2023). Read the government's response: Seventh Special Report - What next for the N… ↗ Read the government's response: Twelfth Special Report - What next for the N… ↗
Oral evidence sessions
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| Date | Session and witnesses | Source |
|---|---|---|
| 30 Jun 2022 |
Oral evidence session
Andrew Rhodes · Gambling Commission,
John Tanner · Gambling Commission
|
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| 26 Apr 2022 |
Oral evidence session
Clara Govier · People’s Postcode Lottery,
Donald Macrae · Health Lottery,
Tony Vick · Lotteries Council
|
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| 1 Mar 2022 |
Oral evidence session
David Knott · National Lottery Community Fund,
Dr Darren Henley OBE · Arts Council England
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| 30 Nov 2021 |
Oral evidence session
Adam Peaty MBE,
Anna Powell-Smith · Centre for Public Data,
Dr Sasha Stark,
Ellie Robinson MBE,
Lauren Rowles MBE
|
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Who gave evidence
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| Witness | Organisation | Sessions |
|---|---|---|
| Adam Peaty MBE | Not recorded | 1 |
| Andrew Rhodes · Chief Executive | Gambling Commission | 1 |
| Anna Powell-Smith · Founder | Centre for Public Data | 1 |
| Clara Govier · Managing Director | People’s Postcode Lottery | 1 |
| David Knott · Chief Executive | National Lottery Community Fund | 1 |
| Donald Macrae · Promoter | Health Lottery | 1 |
| Dr Darren Henley OBE · Chief Executive | Arts Council England | 1 |
| Dr Sasha Stark | Not recorded | 1 |
| Ellie Robinson MBE | Not recorded | 1 |
| John Tanner · Executive Director | Gambling Commission | 1 |
| Lauren Rowles MBE | Not recorded | 1 |
| Tony Vick · Chair | Lotteries Council | 1 |
Correspondence
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