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Lottery Insights December Issue
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Give Yourself The Edge

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A Weekly Snapshot of the Top Lottery and Gaming News Stories


Vol. 81 No. 12 - Monday December 18, 2017

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Scientific Games Shines at 2017 North American Lottery Awards with Nine Nominations and Top Honors for "Best New Instant Game" Created for the DC Lottery

LAS VEGAS and ATLANTA (December 12, 2017) --  Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company") today announced that its $5DC-7s game created for the DC Lottery has won the Buddy Roogow Innovation Award for "Best New Instant Game" in the 2017 North American State and Provincial Lotteries Association (NASPL) Awards held at the NASPL 2017 Annual Conference in Portland, Oregon. The DC Lottery directly benefits the residents and economic vitality of the District of Columbia.

In addition, the $100 Ultime game designed by Loto-Québec and Scientific Games was one of the two finalists for "Best New Instant Game" of 2017. In total, nine of the 13 games nominated by U.S. and Canadian lotteries for "Best New Instant Game" were designed and manufactured by Scientific Games. Included in the nine nominations was a "family" of four games, with Scientific Games creating and producing the $5 and $10 game in the suite.

Another finalist for "Best New Instant Game" was created by British Columbia Lottery Corporation featuring the CIRQUE DU SOLEIL KOOZA™ brand from Scientific Games' global portfolio of licensed properties for lottery and casino games.

Named in honor of the DC Lottery's former executive director, the Buddy Roogow Innovation Award won by the $5DC-7s game celebrates "the efforts made to create and communicate the innovative attributes of new instant and draw style games."

Scientific Games

"Our mission is to provide games that players enjoy and generate revenue for the District. It's great when a game we offer not only accomplishes those goals, but also is also honored by our peers in the industry," said Tracey Cohen, Interim Director for DC Lottery.

The DC Lottery's best-performing $5 game this year, DC-7s features 21 different scenes showcasing players' favorite number "7". Colorful DC-themed designs include the District of Columbia flag, cherry blossoms and U.S. currency—all in the shape of "7." The game offered instant win opportunities for more than $1,000,000 in total cash prizes, including two top prizes of $50,000.

"On behalf of Scientific Games, we congratulate the DC Lottery and both finalists for 'Best New Instant Game' of 2017 in North America," said John Schulz, Senior Vice President Instant Products for Scientific Games. "We have established a very high bar for instant product innovation, and we appreciate that so many of our games were nominated. We look forward to continued collaboration with our customers to create games that help drive maximum revenues for their beneficiaries."

In 1974, Scientific Games developed the world's first secure lottery instant game and is the world's largest provider of instant games. Today, the Company provides games, technology, and services to more than 150 lotteries globally, including nearly every North American lottery.

Cirque du Soleil and KOOZA are trademarks owned by Cirque du Soleil and used under license. © 2007 Cirque du Soleil. All rights reserved. Licensed by Cirque du Soleil.

About Scientific Games

Scientific Games Corporation (NASDAQ: SGMS) is a leading developer of technology-based products and services and associated content for worldwide gaming, lottery and interactive markets. The Company's portfolio includes gaming machines, game content and systems; table games products and utilities; instant and draw-based lottery games; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and interactive content and services. For more information, please visit us at:

SOURCE: Scientific Games Corporation.


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NetEnt Signs Distribution Agreement with IGT for Norsk Tipping

STOCKHOLM, Sweden (December 11, 2017) -- NetEnt, a leading provider of digital casino content solutions, has signed an agreement with IGT to supply online casino games to Norsk Tipping, the state lottery in Norway.

Earlier this year, NetEnt participated as a supplier to IGT in the competitive procurement process of Norsk Tipping for the delivery of online casino content. Norsk Tipping is Norway's state lottery operator and a World Lottery Association (WLA) member.

Following a successful tender process, IGT announced in February of this year that it had won a contract with Norsk Tipping to provide online casino games. For more information, see news release: IGT Wins Contracts With Norsk Tipping To Provide Interactive Casino And Instant Win Game Libraries And Customized Games


Subsequent to the contract win, NetEnt and IGT have signed an agreement for the supply of online casino games to Norsk Tipping. Under the terms of IGT’s contract with Norsk Tipping, NetEnt will make a wide range of its world-leading games available through the IGT Connect™ integration layer to Norway’s state lottery operator.

Enrico Bradamante, MD of NetEnt Malta Ltd, commented: “We look forward to providing our popular game portfolio to Norsk Tipping together with IGT through their IGT Connect™ platform. We are proud to serve yet another customer through IGT in the strategically important WLA segment.”

About NetEnt

NetEnt AB (publ) is a leading digital entertainment company, providing premium gaming solutions to the world’s most successful online casino operators. Since its inception in 1996, NetEnt has been a true pioneer in driving the market with thrilling games powered by a cutting-edge platform. NetEnt is committed to helping customers stay ahead of the competition, is listed on NASDAQ Stockholm (NET–B) and employs 900 people in Stockholm, Malta, Kiev, Krakow, Gothenburg, Gibraltar and New Jersey.

About Norsk Tipping

Norsk Tipping is assigned by the government to offer games that create excitement and entertainment within responsible limits, with the profits going to good causes. Norsk Tipping is a government-owned limited company under the direction of the Ministry of Culture. For more information about Norsk Tipping, please visit the website

About IGT

IGT is the global leader in gaming, enabling players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Interactive and Social Gaming.



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Kentucky Lottery Sales Remain Positive

LOUISVILLE, Kentucky (November 8, 2017) -- Kentucky Lottery sales continue to trend ahead of last year’s record-breaking sales, according to a report in today’s meeting of the organization’s board of directors.


Vice President and Corporate Controller Maggie Garrison reported year-to-date (July-November) sales of $415.8 million, which is nearly $21.6 million (5.5%) more than sales for the same timeframe last year of $394.2 million.

This amount is also $3.1 million (0.8%) more than what was budgeted for the period.

Income before transfer of dividends remains ahead of the budgeted number.

This amount year-to-date is $106.0 million, which is $5.4 million (5.3%) more than last year and $4.7 million (4.7%) more than budgeted.

We’re heading into the time of year which is always our best sales period,” said the lottery’s President and CEO Tom Delacenserie.

Sales of our holiday tickets are significantly ahead of where they were this time last year, I think due in large part to our marketing campaign featuring Bob Newhart. And once we get past the holidays, we traditionally see an uptick in sales starting in February, typically with our scratch off and Keno products. I believe we’ve laid the groundwork for a solid fiscal year.

In other business, the board approved:

  • The purchase of a digital printing press and related equipment and services from Ricoh;
  • The FY18 Keno retailer incentive program;
  • Modifications to retailer regulation and licensing documents;
  • An amendment to Delacenserie’s contract to include performance metrics for FY18 and establish a method for awarding an annual performance incentive, and;
  • Rules and regulations for eight scratch-off tickets and eight Instant Play games.


The next meeting of the KLC’s board of directors will be January 26. The meeting will begin at 10:00 AM EST, and will be held at the KLC headquarters at 1011 West Main Street in Louisville. The audit committee meeting will begin at 8:00 AM EST, as well as the procurement committee at 9:00 AM EST.

For More Information CONTACT: Chip Polston, Jennifer Cunningham or Sara Westerman, T: (502) 560-1675.

SOURCE: Kentucky Lottery.



Pollard Banknote Announces ‘Purrfect’ New Addition to Its Licensed Brands Portfolio — Felix the Cat


WINNIPEG, Manitoba, Canada (December 14, 2017) -- Pollard Banknote Limited (TSX: PBL) (“Pollard Banknote”), a leading lottery partner that provides instant tickets, interactive solutions, and marketing support, is excited to announce the addition of Felix the Cat, the iconic cartoon character, to its expanding licensed games portfolio. Under the agreement with DreamWorks Animation LLC (“DreamWorks”), Pollard Banknote now offers Felix the Cat branded instant tickets to its lottery clients.

Ever since his introduction in 1919, Felix the Cat has been a beloved character and an internationally recognized pop culture icon. Felix is a pioneer at heart, being the first animated movie star, the first character to be supported by merchandise, the first character balloon to appear in the Macy’s Thanksgiving Day Parade, and even the first image to be broadcast on TV!

Pollard Felix Ticket

For decades, Felix has displayed staying power as a cross-category lifestyle brand with a broad audience that spans multiple generations. There is a Felix to suit everyone, so potential and current lottery players will instantly recognize him as both a nostalgic and trend-setting brand.

In preparation for Felix’s milestone 100th birthday in 2019, DreamWorks has planned a variety of exciting events. The fun begins on November 8, 2018, the official kick-off to a year of festivities that will include public relations and social media campaigns, consumer events, and high-profile retail collaborations that will include brand new Felix merchandise ranging from clothing to accessories. All of these initiatives are designed to help the beloved feline celebrate his centennial birthday, and keep Felix top-of-mind with consumers.

The whimsical and nostalgic essence of the brand is what drew us to Felix, as these are two themes that lottery players love,” said Sina Aiello, Vice President, Marketing, Pollard Banknote. “We are pleased to introduce Felix to the world of lottery. The brand’s essence symbolizes luck, making it a ‘purrfect’ addition to our licensed games portfolio.

About Pollard Banknote

Pollard Banknote is a leading lottery partner to more than 60 lotteries worldwide, providing high quality instant ticket products, licensed games, and strategic marketing and management services for both traditional instant games and the emerging iLottery space of web, mobile and social channels. The company is a proven innovator and has decades of experience helping lotteries to maximize player engagement, sales, and proceeds for good causes. Pollard Banknote also plays a major role in the charitable pull-tab and bingo markets in North America. Established in 1907, Pollard Banknote is owned approximately 73.5% by the Pollard family and 26.5% by public shareholders, and is publicly traded on the TSX (PBL). For more information, please visit our website at

For More Information CONTACT: Sina Aiello, Pollard Banknote Limited, Vice President, Marketing, Telephone: (204) 474-2323, E-mail:

SOURCE: Pollard Banknote Limited.


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3rd Quarter 2017 Sales Data Available via the NASPL Matrix!

NASPL (December 8, 2017) -- To view, visit, log in and select the NRI tile.

From there you can view United States and Canadian Lotteries as a whole.

  • Jurisdiction specific sales can be found by selecting from the list under "Member Profiles".
  • A quarterly sales report can be generated by clicking the tab on the left of the screen and selecting the full report option.


Should you have any issues logging in please contact NASPL HQ by phone, 440-361-7962, or email to Jake Coy,

The NASPL Matrix Database holds a wealth of lottery information and statistics! Tell your co=workers, staff and any other lottery professionals!

 The NASPL Matrix, Another Great Service of NASPL.




Juncker's 'Political' Commission Leaves Gambling Reforms to the Courts


BRUSSELS, Belgium (December 7, 2017) -- EU-based and EU-regulated gambling operators oppose today’s decision of the Juncker Commission to discontinue its work to combat infringements of the EU single market rules in the gambling sector which has well over 20 million EU consumers. With a constant stream of court cases, over 30 consistent rulings issued by the Court of Justice of the European Union (CJEU) and further cases pending it is evident that the online gambling sector, an inherently cross-border sector, is rife with EU law infringements and that consumers are clicking on unregulated, non-EU gambling websites. This Commission decision also conflicts with the EU's own self-stated policy priorities, in particular the EU’s Digital Single Market programme, and is at odds with concerted efforts to enhance consumer safety and combat money-laundering and match-fixing ahead of next year’s FIFA World Cup in Russia.


The infringement cases which the Commission has today officially closed without further action involve a suite of national laws and practices which constitute serious and unambiguous contraventions of primary EU law and CJEU jurisprudence. The infringements in question include discriminating against operators from other member states in access to gaming and betting licences, discriminating against online services versus offline services and forced localisation of servers. [See annex for details of specific cases].

Maarten Haijer, Secretary General of the EGBA notes: “Today’s decision by the Commission is unhelpful in the fight against unregulated non-EU gambling services. National courts will continue to be confronted with gambling cases and the CJEU will continue to rule on questions from national courts. This decision sends a signal that the Juncker Commission fails to appreciate the need to underpin its ambitious Digital Single Market programme with solid enforcement and guidance from the Commission itself, taking its role as guardian of the treaties seriously. The question is not whether the Commission should create an internal market for online gambling or not, but the idea that regulatory and EU law challenges of an internet sector like online gambling can be resolved by member states individually, shows a baffling lack of understanding of the digital consumer by the Juncker commission.”

The Commission back in 2012 already concluded that ‘the prevailing regulatory, societal and technical issues in the EU cannot be tackled adequately by Member States individually. This is especially true given the cross-border dimension of online gambling. The Commission is not proposing EU-wide legislation on online gambling.


It is proposing a comprehensive set of actions and common principles on protection.1 Today’s decision goes against the European Parliament report on online gambling calling on the Commission ‘to launch infringement procedures against those Member States that appear to breach EU law.2

Haijer added: “EU member states such as Italy and Denmark have set an example in designing a gambling framework which works: strict regulation and controls in combination with a level of taxation which encourages recourse to properly supervised services and a high level of consumer protection. However, we note that the gambling sector is not alone in complaining about the inaction of the Commission when certain other member states refuse to allow non-domestic services to operate on their territory. Today's decision to close the cases does not change the legal situation and – as the Commission states itself – cannot be read as any form of "greenlighting" existing breaches of EU law in the Member States' laws”.


The Commission decision conflicts with its own statement in its ‘EU law: Better results through better application’ paper where it states that: ‘The Commission will act firmly on infringements which risk undermining the four fundamental freedoms’.

In the same paper the Commission commits to 'focus on the most important breaches' but, by disregarding a whole sector, it risks overlooking key instances of breach which might be of general relevance to EU-wide enforcement of the single market. The Commission pledges that it will ‘continue to identify wider problems with enforcement’ yet the infringement cases to be closed are treated en masse without consideration of their possible broader relevance to proper EU-law enforcement in the countries in question.





For more information, please CONTACT: Maarten Haijer, Secretary General of EGBA, T: +32 25 540 890, E:

About EGBA

The EGBA is an association of leading European gaming and betting operators Bet-at-home, BetClic, GVC Holdings PLC, Expekt, Kindred Plc, ZEAL Network, Betsson Group and Bet365. The Gibraltar (GBGA), Swedish (BOS) and Austrian (OVWG) associations are affiliate members of EGBA. As a Brussels-based non-profit association, EGBA promotes the rights of more than 20 million adult European citizens to participate in online gambling of their choice in an informed, regulated, safe and secure environment. While online gambling remains a smaller part of the total gambling market (15%), based upon innovation, technology and digital consumer demand, online gambling transformed itself into an industry champion of the European digital economy with material spin-off effects towards other digital economies and strong synergies with sports.

SOURCE: EGBA press release.



Concerns About Public Order and Consumer Protection Are Best Dealt with by Controls and Regulation at the Level of the Member State

EL understands European Commission’s closure of infringement cases in the field of gambling


BRUSSELS, Belgium (December 7, 2017) -- The European Lotteries Association (EL) takes note that the European Commission has closed the open infringement cases concerning online gambling.

EL Secretary General Arjan van ‘t Veer: “It makes sense for the European Commission to close cases when it is indeed no longer needed to pursue them. Concerns about public order and consumer protection are best dealt with by controls and regulation at the level of the Member State."


EL recalls that Member States have a wide discretionary margin in determining their gambling policy on their territory. They have the right to decide on restrictive measures for public order and consumer protection, in light of the national/regional specific features.

It is therefore welcomed that the Commission in its statement today acknowledges the broader political legitimacy of the public interest objectives that Member States are pursuing when regulating gambling services.

The association also stresses the primary competence of Member States to regulate the gambling sector on their territory, as has been confirmed by the Council and the case-law from the EU Court.

CONTACTS: Arjan van ‘t Veer, Secretary General, The European Lotteries, Tel. +32 2 234 38 20, E: or Jutta Buyse, EL Deputy Secretary General

Tel: + 32 2 234 38 20, E:

About The European Lotteries

The European Lotteries (EL) is the European umbrella organisation of national lotteries operating games of chance for the public benefit. EL has members from more than 40 European countries including all EU Member States.

The association’s EU members contribute more than 20 billion EUR p.a. to the state budgets and the funding of sport, culture, social projects, research and other causes of general interest.

Unlike many commercial online gambling operators, EL members only offer gambling and betting services in the jurisdictions in which they are licensed by the respective national government.

SOURCE: European Lotteries (EL).



Lotto Management Cooks Christmas Dinner for Employees for a Good Cause

HANNOVER, Germany (December 8, 2017) -- Traditionally, the management of Lotto Niedersachsen in the run-up to Christmas time is dedicated to the physical well-being of the workforce to raise funds for the good cause.


On December 12, 2017, the management will be cooking Christmas dinner in the Lotto headquarters for all 166 employees, who will reward this with a donation to a charity in Lower Saxony.

This sum raised by the employees is matched by the company following the joint lunch.

This year, the proceeds from the campaign go to MOKI Mobile Children's and Youth Hospice e. V. The Association provides assistance to affected families from the moment of diagnosis of a serious illness, with the primary objective of providing educational and therapeutic support and support to families.

The Christmas dinner of Lotto Niedersachsen takes place for the 14th time. For the first time this year, the provider of "meal time", who has taken over the preparation of the canteen food since this year, is supporting the management in the cooking work.

About Toto-Lotto Niedersachsen GmbH:

The Toto-Lotto Niedersachsen GmbH (LOTTO Lower Saxony) is the Landeslotteriegesellschaft of Lower Saxony based in Hannover.

For more than 60 years, LOTTO Niedersachsen has stood for responsible gambling and the directing of gaming interest in legal channels on behalf of the state.

For further questions CONTACT: Dr. Petra-Kristin Bonitz, Head of Corporate Communications and Press Officer of Toto-Lotto Niedersachsen GmbH, Telephone: +49 (0) 511 8402-556, Mobile: +49 (0) 151 52050254, E-Mail:

SOURCE: Lotto Niedersachsen GmbH.


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mybet Holding SE Goes Online in Ghana

BERLIN, Germany (December 8, 2017) -- Since several years the mybet Group operates a successful B2B sports betting offering in Ghana in cooperation with a local partner. Already more than 120 mybet branded land-based betting shops are in operation in Ghana.

This business is one of the main reasons for the growth achieved in mybet Group's group segment B2B. Now the local partner expands his offering in cooperation with mybet: Henceforth customers from Ghana are able to bet on sports results online at

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"Due to a rapid growth the mybet brand used by our partner has become one of the market leaders in sports betting in the country. Now we want to expand on this success together with our partner. From our perspective there is currently no online sports betting offering in Ghana that is able to compete with the quality and safety of mybet. Therefore we are convinced that the mybet brand can reach market leadership in Ghana in the mid-term," said Markus Peuler, CEO of mybet Holding SE.

The Management Board is expecting the online business to have a significant positive effect on the economic development of the group segment B2B within a few months only.

Thus, in addition to the B2B activities in Austria already started in August, mybet Group's very profitable group segment B2B gains another growth driver.

mybet Holding SE

The mybet Group, licensed in several European countries to offer sports betting and online casino games, has its registered office in Berlin and locations in Cologne and Malta. mybet offers its betting and gaming products over the internet platform as well as at land-based betting shops operating under a franchise system.

In addition, the group supplies regional betting providers in Europe and Africa as a B2B service provider.

mybet Holding SE is the parent company of the mybet Group. The shares of mybet Holding SE (ISIN DE000A0JRU67) are listed on the Frankfurt Stock Exchange in the Prime Standard.

For further information, visit | |

CONTACT: mybet Holding SE, Sebastian Bucher, Investor & Public Relations, T: +49 30 22 90 83 161, F: +49 30 22 90 83 150, E:

SOURCE: mybet Holding SE.



RGA Calls for Government to Introduce a Statutory Levy

LONDON, U.K. (December 11, 2017) -- The Remote Gambling Association (RGA) today announced that it would urge the Government to introduce a statutory levy to replace the current system of voluntary funding for research, education, and treatment of problem gambling; and to ensure that the National Responsible Gambling Strategy is properly funded.

The current voluntary funding system, which is overseen by GambleAware, was originally established by the gambling industry to provide finances for a range of social responsibility projects, and full credit should be given to all those companies who have contributed to it regularly over the years. Without this support there would have been few or no specialist treatment services in Great Britain and less resource available for research and education.

However, it has become increasingly clear that this system is no longer fit for purpose and this concern is presumably why DCMS in its Consultation on proposals for changes to Gaming Machines and Social Responsibility Measures October 2017) posed a specific question about the future of the funding of research, education and treatment.


The RGA’s previous position was that it was not opposed in principle to the introduction of a statutory levy. After careful consideration it has now taken the decision that it should instead proactively seek the introduction of such a levy for which there is already a reserve power in the Gambling Act 2005. When it responds in January to the DCMS consultation it will adopt this line and propose ways in which an equitable and effective levy system could be implemented sooner rather than later.

Commenting on the proposal, the RGA’s Chief Executive, Clive Hawkswood, said:

‘There has been much to commend in the voluntary funding system, but if we are to combat problem gambling to the best of our ability and to minimise gambling related harm, then now is the time for change and for a fresh start. We are all disappointed that the current system has been the subject of so much criticism and has struggled with fundraising, but we need to put that behind us.

We have acknowledged the problem and put forward a long-term solution. We believe everyone’s efforts should now be focussed on bringing this change about. For the industry this should be seen as an opportunity rather than a threat. More funding is needed if we are to fulfil our responsibilities to everyone in this country who gambles, and especially those who are affected by problem gambling. A statutory levy will ensure the right funds are raised in a fair and open process and, crucially, that they are allocated in a way that is transparent, independent, and achieves measurable benefits.’

About the RGA

The RGA is a trade association representing the online gambling industry. Further information and full list of its membership can be found at

CONTACT: Clive Hawkswood either at or on 0203 585 1242.

SOURCE: The RGA press release.



Authentic Gaming Expands Into New Office

Live casino pioneer takes up residence in state-of-the-art 400 sq meter headquarters as it continues to grow at rapid rate

MALTA (December 11, 2017) -- Live casino pioneer Authentic Gaming has cut the ribbon on a brand new 400 square meter office in the heart of Selima, Malta, to accommodate its tremendous growth.

The company has gone from three employees when it was founded back in 2015 to more than 30 designers, developers, engineers and technicians today, as well as fast growing team of online dealers/presenters. As a result, it has outgrown its current headquarters.

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The new office boasts a stunning location being situated on the seafront in the bustling town of Selima.

Jonas Delin, CEO of Authentic Gaming, said: “We are delighted to take up residence in our new office. We have enjoyed a rapid rise over a short space of time, and our new headquarters represent the scale and scope of the business today.

“The business continues to expand as we sign up new partners and operators, and broaden our product and service offering. Our new office will allow us to properly execute our ambitious growth plans, and better serve our clients.”

Authentic Roulette, the supplier’s flagship product, allows land-based casino operators to live stream footage from their gaming tables to an unlimited number of online players via its network of B2B online partners.

The footage is captured via HD cameras located above the wheel and around the table. Authentic Roulette is not realistic, it’s real; the tables are real, the croupiers are real, the cards and the chips are real and, most importantly, the other players are real

The supplier also offers Authentic Live! Entertainment, which allows land-based casino operators to live stream shows, performances and celebrity appearances taking place within the property to online players while they continue to wager.

Authentic Gaming recently strengthened its product offering with the launch of Casino Floor Live Roulette, a dedicated online table that can be located at the heart of the gaming floor of any land-based casino.

About Authentic Gaming:

Authentic Gaming is a provider of premium live casino systems to online and land-based gaming operators. All Authentic Gaming tables are broadcasted live from the floors of luxurious resort casinos across the world. The company was founded in 2015 and is headquartered in Malta.

SOURCE: Authentic Gaming.


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National Audit Office Investigation: National Lottery Funding for Good Causes

LONDON, U.K. (December 13, 2017) -- The National Audit Office has today published the results of its investigation into the fall in National Lottery income for good causes in 2016-17.


It reviews the trends in total National Lottery sales and income for good cause, focusing on the six distributors with the largest share of National Lottery income and the way they have managed the balances within the National Lottery Distribution fund.

The National Audit Office scrutinises public spending for Parliament and is independent of government. The Comptroller and Auditor General (C&AG), Sir Amyas Morse KCB, is an Officer of the House of Commons and leads the NAO, which employs some 785 people. The C&AG certifies the accounts of all government departments and many other public sector bodies.

He has statutory authority to examine and report to Parliament on whether departments and the bodies they fund have used their resources efficiently, effectively, and with economy. Our studies evaluate the value for money of public spending, nationally and locally.

Our recommendations and reports on good practice help government improve public services. Our work led to audited savings of £734 million in 2016.

CONTACT: Steve Luxford , Direct line: 020 7798 7861, Mobile: 07985 260074 Email:



Key findings

Income for good causes

1. National Lottery (the Lottery) income for good causes increased between 2004-05 and 2015-16, but fell in 2016-17. Lottery income for good causes rose by 42% from £1.36 billion in 2004-05 to £1.93 billion in 2015-16. However, in the 12 months from 1 April 2016, income for good causes fell by 15% to £1.63 billion at the same time as Lottery sales fell by 9% to £6.93 billion, compared with the previous year. Camelot predicts a further fall in sales and income for good causes in 2017-18 (paragraph 2.7 and Figure 8).1

2. In 2016-17, Lottery sales decreased by 13% on draw-based games and 2% on scratchcards and instant-win games (instants). The Department for Digital, Culture, Media & Sport (the Department), the Gambling Commission (the Commission) and Camelot have identified some possible reasons for the fall in sales, including consumers’ reaction to recent changes to Lottery games, increased competition and consumers moving away from playing draw-based games. They have not been able to establish the financial impact of these individual factors (paragraphs 2.7 and 2.14, and Figures 7 and 8).

3.  Returns for good causes are higher from sales of draw-based games. The rate of return for good causes varies across different Lottery games. As at February 2017, for each pound spent on the Lottery, the approximate returns for good causes ranged from 34p for draw-based games bought online to 10p for scratchcards, with some scratchcards returning as little as 5p. Camelot told us that instants return less to good causes due to the need to offer a higher proportion of proceeds as prizes for instants to encourage consumers to participate. In 2016-17 the prize fund accounted for approximately 68% of gross sales for scratchcards, compared with 49% for draw-based games. The calculation of the amount that goes to good causes is set in Camelot’s operating licence and depends on a number of factors including the level of sales, what is paid out in prizes, Camelot’s retention and retailers’ commission (paragraph 2.8 and Figure 9).

4. Increases in Camelot’s profits have been proportionately greater than increases in both Lottery sales and returns for good causes. Camelot’s accounts show that, comparing 2009-10 and 2016-17, Lottery sales increased by 27% (£1.5 billion) to £6.9 billion. Comparing the same dates, returns for good causes increased by 2% (£31 million) to £1.5 billion and Camelot’s profit attributable to its shareholders increased by 122% (£39 million) to £71 million.2 The amount that Camelot keeps to cover costs and profit was set in 2009, in the third operating licence, and is a percentage of both gross and net sales, rather than a direct linear relationship to what has been raised for good causes (paragraphs 2.4, 2.10 and Figure 6).

5. The method of calculating returns for good causes was set in Camelot’s 2009 licence and does not reflect subsequent changes in sales across different types of Lottery games. The Lottery’s overarching objective is to maximise returns for good causes through selling Lottery products in an efficient and socially responsible way.

The relative decline in sales of draw-based games compared with instants has led to a lower rate of return to good causes. The licence terms were set in 2009 and Camelot’s current licence term ends in 2023. Any changes to the basis for calculating returns for good causes prior to 2023 would need to be agreed by the Commission and Camelot (paragraphs 1.2, 2.3 and 2.9 and Figure 10).

Management of balances in the National Lottery Distribution Fund

6. Half of the six largest Lottery distributors increased their grant commitments in 2016-17 at the same time as Lottery income fell. Funding liabilities of the six largest distributors increased by a total of £88 million compared with the prior year.

At 31 March 2017, distributors’ liabilities as a percentage of their National Lottery Distribution Fund (the Fund) balance ranged from 19% for UK Sport to 342% for the Big Lottery Fund. Distributors often have commitments spanning many years, so it is likely that commitments will exceed their Fund balance at a given date.

However, between 2009-10 and 2016-17, the total available Fund balance increased by 18% (to £1.54 billion) while total grant liabilities increased by 37% (to £3.04 billion) (paragraphs 3.4, 3.6 and Figures 12 and 13).

7. The Fund balance at 31 March 2004 was sufficient to cover 96% of total liabilities raised by distributors; at 31 March 2017 this figure had fallen to 51%.

At 31 March 2017, Fund balances were £1.5 billion compared to distributors’ grant liabilities of £3.0 billion. In July 2005, the Committee of Public Accounts recommended that the Department should set a target to reduce the Fund balance (which stood at £2.7 billion at 31 March 2004). Fund balances are determined by how much money is raised by the Lottery for good causes and how much is paid out by distributors.


Since distributors have no control over Lottery income, they manage their balances by planning their grant awards using available information on future Lottery income (paragraphs 3.2, 3.4, 3.7 and 3.8).

8. Since the fall in Lottery income for good causes, distributors have been given more sophisticated information, including short-term forecasts from Camelot. In June 2016, Camelot began to provide distributors with short-term, commercially sensitive forecasts of future Lottery income for good causes. Prior to this, until October 2015, the Department shared with distributors projections of future income for good causes based purely on projecting historical trends. In June 2017, the Department gave all distributors an external consultancy’s analysis that modelled future income for good causes up to 2019-20. Distributors have raised concerns that the modelling makes no adjustment for the impact of any structural changes in the Lottery, such as game changes to address the recent fall in sales. The Department told us that the modelling work will be repeated following Camelot’s recent strategic review of its business and it did not believe it would have been helpful to model the impact of potential game changes prior to Camelot’s review, given the wide range of potential variables. The six largest distributors have modelled different scenarios of potential income when setting future years’ grant budgets. Many distributors continue to use their own estimates of future income for good causes informed by the data sources available, causing some duplication (paragraphs 3.11 and 3.14 to 3.16).

9. The Department gives distributors information to help them manage their balances; but distributors told us they do not get all the information they need.

The Department can request any data it wishes from the Commission, in accordance with its management agreement, and receives detailed information, including weekly sales by game and monthly returns for good causes. The Department does not give the distributors weekly sales figures split by game, even though they have asked for them. Distributors have told us that prompt sharing of such data allows them to spot declining or increasing income early, helping them to plan their future grant awards. The Department believes that weekly sales data does not provide a clear indication of trends due to the range of factors that may cause Lottery sales to fluctuate from week to week (paragraph 3.18).

Download Full Report Investigation: National Lottery funding for good causes (pdf - 518KB).


Scientific Games

Schafer Systems Inc.




Jumbo Interactive

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