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."
"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
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. currencyall 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
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: www.scientificgames.com.
SOURCE: Scientific Games
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 IGTs contract with Norsk Tipping,
NetEnt will make a wide range of its world-leading games available through the
IGT Connect integration layer to Norways state lottery
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.
NetEnt AB (publ) is a leading
digital entertainment company, providing premium gaming solutions to the
worlds 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 (NETB) and
employs 900 people in Stockholm, Malta, Kiev, Krakow, Gothenburg, Gibraltar and
New Jersey. www.netent.com
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
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
SOURCE: NetEnt AB.
Kentucky Lottery Sales Remain Positive
LOUISVILLE, Kentucky (November 8,
2017) -- Kentucky Lottery sales continue to trend ahead of last years
record-breaking sales, according to a report in todays meeting of the
organizations 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.
Were heading into the
time of year which is always our best sales period, said the
lotterys 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
weve laid the groundwork for a solid fiscal year.
In other business, the board
- 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
- An amendment to Delacenseries 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 KLCs
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 Macys Thanksgiving Day Parade, and even the
first image to be broadcast on TV!
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
In preparation for Felixs
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 brands 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: email@example.com.
SOURCE: Pollard Banknote
Quarter 2017 Sales Data Available via the NASPL Matrix!
NASPL (December 8, 2017) -- To view,
visit www.nasplmatrix.org, 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
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
BRUSSELS, Belgium (December 7, 2017)
-- EU-based and EU-regulated gambling operators oppose todays 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 EUs 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 years 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: Todays 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 Todays 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'
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
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:
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. www.egba.eu.
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
EL understands European
Commissions closure of infringement cases in the field of
BRUSSELS, Belgium (December 7, 2017)
-- The European Lotteries Association (EL) takes note that the European
Commission has closed the open infringement cases concerning online
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
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
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
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 associations 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
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
SOURCE: European Lotteries (EL).
Management Cooks Christmas Dinner for Employees for a Good
HANNOVER, Germany (December 8, 2017)
-- Traditionally, the management of
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
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
The Toto-Lotto Niedersachsen GmbH
(LOTTO Lower Saxony) is the Landeslotteriegesellschaft of Lower Saxony based in
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: firstname.lastname@example.org.
SOURCE: Lotto Niedersachsen
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
"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 mybet.com 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: email@example.com
SOURCE: mybet Holding SE.
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
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
The RGAs 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
Commenting on the proposal, the
RGAs 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 everyones 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
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 www.rga.eu.com.
CONTACT: Clive Hawkswood either at
firstname.lastname@example.org or on 0203 585
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
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
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
suppliers 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, its real; the tables are real, the croupiers are real, the
cards and the chips are real and, most importantly, the other players are
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.
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
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:
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
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 Camelots operating licence and depends on a number of
factors including the level of sales, what is paid out in prizes,
Camelots retention and retailers commission (paragraph 2.8 and
4. Increases in Camelots
profits have been proportionately greater than increases in both Lottery sales
and returns for good causes. Camelots 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
Camelots 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
5. The method of calculating returns for good
causes was set in Camelots 2009 licence and does not reflect subsequent
changes in sales across different types of Lottery games. The Lotterys
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 Camelots 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
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
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 consultancys 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 Camelots 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 Camelots 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).