Fourth Report - What next for the National Lottery?

The government's response

What the committee recommended 23

1. 1
   We are disappointed that Camelot chose not to make itself available for scrutiny of its... Conclusion · paragraph 18
2. 2
   The Gambling Commission has followed its predecessors in overseeing a poorly managed competition, and we... Conclusion · paragraph 33
3. 3
   The Gambling Commission must vigilantly monitor Allwyn’s good cause returns to ensure that fund distributors... Conclusion · paragraph 34
4. 4
   The Gambling Commission should, within six months of the licence process being complete, review its... Conclusion · paragraph 35
5. 5
   The fine imposed against Camelot earlier this year regarding the National Lottery’s inappropriate targeting of... Conclusion · paragraph 45

See all 23 recommendations and conclusions

Sources

• Fourth Report - What next for the National Lottery? ↗The committee's report, HC 154, parliament.uk
• Seventh Special Report - What next for the National Lottery?: Government and Gambling Commission Responses to the Committee’s Fourth Report ↗The government's response, 10 March 2023, parliament.uk
• Twelfth Special Report - What next for the National Lottery?: National Lottery Distributors’ Response to the Committee’s Fourth Report ↗The government's response, 23 October 2023, parliament.uk

Recommendations and conclusions 23

1. 1
   We are disappointed that Camelot chose not to make itself available for scrutiny of its... Conclusion · paragraph 18 · addressed to Department for Culture, Media and Sport Conclusion (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.
2. 2
   The Gambling Commission has followed its predecessors in overseeing a poorly managed competition, and we... Conclusion · paragraph 33 · addressed to Department for Culture, Media and Sport Conclusion (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.
3. 3
   The Gambling Commission must vigilantly monitor Allwyn’s good cause returns to ensure that fund distributors... Conclusion · paragraph 34 · addressed to Department for Culture, Media and Sport Conclusion (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.
4. 4
   The Gambling Commission should, within six months of the licence process being complete, review its... Conclusion · paragraph 35 · addressed to Department for Culture, Media and Sport Conclusion (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.
5. 5
   The fine imposed against Camelot earlier this year regarding the National Lottery’s inappropriate targeting of... Conclusion · paragraph 45 · addressed to Department for Culture, Media and Sport Conclusion (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.
6. 6
   The Lottery operator and Gambling Commission should collect and share player data with the public,... Conclusion · paragraph 46 · addressed to Department for Culture, Media and Sport Conclusion (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.
7. 7
   We recommend that the Gambling Commission commissions research into the gambling harms of National Lottery... Recommendation · paragraph 47 · addressed to Department for Culture, Media and Sport Recommendation (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.
8. 8
   We think that any operator should, by default, meet the Gambling Commission’s suggested donation to... Conclusion · paragraph 53 · addressed to Department for Culture, Media and Sport Conclusion (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.
9. 9
   While it is clearly the case that the National Lottery poses significantly fewer gambling harms... Conclusion · paragraph 58 · addressed to Department for Culture, Media and Sport Conclusion (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.
10. 10
    We recommend that, with immediate effect, all National Lottery products should carry GambleAware branding. Recommendation · paragraph 59 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)

    We recommend that, with immediate effect, all National Lottery products should carry GambleAware branding.
11. 11
    We recommend that the Gambling Commission carries out an evaluation of the effectiveness of delivering... Recommendation · paragraph 66 · addressed to Department for Culture, Media and Sport Recommendation (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.
12. 12
    Exemptions within the ban on gambling on credit are ill thought through and subject to... Conclusion · paragraph 71 · addressed to Department for Culture, Media and Sport Conclusion (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.
13. 13
    We recommend that this loophole, which allows consumers to continue to gamble using credit cards,... Recommendation · paragraph 72 · addressed to Department for Culture, Media and Sport Recommendation (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.
14. 14
    We congratulate moves by Arts Council England to rebalance funding across the UK and remain... Conclusion · paragraph 85 · addressed to Department for Culture, Media and Sport Conclusion (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.
15. 15
    We recommend that the Government continues to ensure greater alignment between its investment priorities into... Recommendation · paragraph 86 · addressed to Department for Culture, Media and Sport Recommendation (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.
16. 16
    We await the publication of the evaluation of the Culture Recovery Fund and hope that... Conclusion · paragraph 92 · addressed to Department for Culture, Media and Sport Conclusion (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.
17. 17
    Public awareness of the link between the National Lottery and funding for good causes remains... Conclusion · paragraph 102 · addressed to Department for Culture, Media and Sport Conclusion (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.
18. 18
    We recommend that a clear majority of National Lottery product advertising should prominently feature the... Recommendation · paragraph 103 · addressed to Department for Culture, Media and Sport Recommendation (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.
19. 19
    We recommend that, over the next six months, the distributing bodies consider how they might... Recommendation · paragraph 104 · addressed to Department for Culture, Media and Sport Recommendation (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.
20. 20
    We do not consider that society lotteries pose a threat to the charitable giving of... Conclusion · paragraph 121 · addressed to Department for Culture, Media and Sport Conclusion (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.
21. 21
    We recommend that the 10% rule for society lotteries should be removed, instead allowing individual... Recommendation · paragraph 122 · addressed to Department for Culture, Media and Sport Recommendation (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.
22. 22
    It is difficult to understand why the National Lottery has been so hostile towards society... Conclusion · paragraph 123 · addressed to Department for Culture, Media and Sport Conclusion (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.
23. 23
    We recommend that prize draws be subject to regulation such as that which applies to... Recommendation · paragraph 124 · addressed to Department for Culture, Media and Sport Recommendation (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.