The Observer (2022-01-09)

The Observer

News 09.01.22 21

Since its launch in 1994 with the entic-
ing slogan “It could be you” and glitzy
televised live draws, the national lot-
tery has created 6,300 millionaires
and given £43bn to good causes.
But MPs and campaigners are
today calling for its operations to be
overhauled after a slump in the pro-
portion of its revenues going to those
causes and growing concerns that its
scratchcards and online games fuel
problem gambling.
Instant games now offered by the
lottery operator, such as Red Hot 7s
and Mega Cash Showdown , offer
prizes of up to £1m and can be played
on smartphones, but pay out less to
good causes because more cash is
given in prizes to help drive sales.
Sir Iain Duncan Smith , vice-chair of
the all-party parliamentary group on
gambling-related harm, said: “There
should be a fi xed percentage on the
amount that goes to good causes. The
operator is beginning to look like any
other gambling company.”
Calls for a review of the lottery and
a national debate on its future come
as rivals bid for a new licence to run
it from 2024. A decision on the suc-
cessful applicant is expected within
the next two months.
Lottery operator Camelot gave 28%
of its revenues to good causes in the
year to 31 March 2010 , but its most
recent accounts show the proportion
given has fallen to less than 23%. The
operator says it has still signifi cantly
increased the amount paid to good
causes because of the rise in revenues
over the same period, from £5.5bn a
year to £8.4bn a year.
The lottery was launched under
prime minister Sir John Major in
November 1994. One of his aims was
to give more funding to Olympic
sport, which, as the single gold medal
won by GB’s athletes at the Atlanta
Games in 1996 demonstrated, badly
needed the money.
The first scratchcards were
launched in March 1995. Scratchcards
sold in stores and instant online
games now account for 44% of the
lottery’s total revenues. About 31% of
the income from draw-based games
goes to good causes, compared with
about 9% from scratchcards and 12%
from instant-win games.
Heather Wardle , an expert on gam-
bling research at Glasgow University,
said there was a signifi cant associa-
tion between scratchcards and prob-
lem gambling. She said: “Engagement
in traditional lotteries does decline
over time and companies rely on
products like scratchcards and they
are more risky.”
Charles Ritchie, who lost his son Jack
to gambling-related suicide and is co-

Eyes on the prize: calls to overhaul lottery

after good causes get a smaller slice of pie

founder of the charity Gambling With

Lives, said: “ These are instant-win

games and can be played fast. Often

they’re no different to online casino

games that are incredibly addictive

and harmful to mental health.”

The companies hoping to oust

Camelot include the Czech lottery

operator Sazka through a special-pur-

pose vehicle called Allwyn. It is headed

in the UK by Sir Keith Mills , who helped

win the 2012 Olympic bid for London.

The other bidders are the Italian oper-

ator Sisal , which is being taken over by

Flutter, the gambling giant that oper-

ates Paddy Power and Betfair , and

media tycoon Richard Desmond , who

owns the Health Lottery.

The bid is being conducted in

strict secrecy and bidders have been

told publicity material must fi rst be

vetted by offi cials at the Gambling

Commission , the betting regulator

that is overseeing the process.

Matt Zarb-Cousin , director of the

campaign group Clean Up Gambling,

said: “We should be having a national

conversation about the future of the

lottery, but instead the Gambling

Commission is running the process

as if it’s a military contract.”

The government announced in

December 2020 its decision to raise

the age for playing the national lottery

from 16 to 18, including scratchcards.

The Gambling Commission says

there are controls in lottery games to

prevent excessive play and approved

rules and procedures for each game.

The Gambling Commission said

this weekend the lower rate of return

from instant games was because the

higher prize payouts were “necessary

to drive the optimal level of sales of

these products”. The commission

said the confi dentiality arrangements

around the bidding process protected

the “integrity of the competition”.

LEFT

Boxer Galal Yafai

with one of the

22 golds won

by Team GB in

Tokyo last year,

thanks to lottery

funding. The

draw, below, was

for years a major

TV event. PA

Camelot said: “Focusing solely on

the amount generated for good causes

in percentage terms paints a deliber-

ately misleading and damaging pic-

ture of the health of the national

lottery. By making the national lot-

tery more attractive and generous to

players, we’re delivering record sales,

prize money and payments in lottery

duty to the Treasury. Annual returns

to good causes are now over £500m

higher than they were at the start of

this licence, even though the percent-

age rate of return is lower.”

The lottery operator says its prod-

ucts are very different from those

offered in the mainstream gambling

sector and data showed the risk of

problem play associated with lot-

tery products was very low. It said:

“We abide by rigorous controls, with

numerous checks and balances in

place to ensure that lottery games are

safe and enjoyable for players.”

The rise of scratchcards has hit donations and

added to concerns over problem gambling.

Now MPs want a shake-up at operator Camelot

‘Instant games are

often no different to

online casino games

and slots that are

incredibly addictive’

Charles Ritchie, campaigner

ABOVE

Camelot added to

the lottery draw

that began in

1994, above, with

scratchcards,

top, in 1995.

Alamy

Jon Ungoed-Thomas LEFT

Boxer G

with on

22 gold

by Team

Tokyo l

thanks

funding

draw, b

for year

TVT even

onations and

ambling.

rator Camelot