The U.K. National Lottery expects to face increased scrutiny when the gambling industry gets a makeover this year. One of the concerns is that a smaller percentage of revenues goes to the charitable causes. In addition, there is growing concern that scratch cards and online games contribute to problem gaming.
Founded in 1994, the lottery slogan “It Could Be You” and glitzy televised live draws has helped create 6,300 millionaires and given £43 billion (US$59 billion) to good causes.
Instant games such as “Red Hot 7s” and “Mega Cash Showdown” offer prizes of up to £1 million and can be played on smartphones but pay out less to good causes because more cash is given in prizes to help drive sales, according to the Guardian.
Sir Iain Duncan Smith, vice-chair of the all-party parliamentary group on gambling-related harm, said: “There should be a fixed percentage on the amount that goes to good causes. The operator is beginning to look like any other gambling company.”
A decision on who the next operator is could be completed in two months. The new licensee will start in 2024.
Lottery operator Camelot gave 28 percent of its revenues to good causes in 2010, but in its most recent figures the proportion has fallen to 23 percent. Because of the increase in revenues, the amount paid has gone up from £5.5 billion a year to £8.4 billion a year.
The first scratch cards were launched in March 1995. They sold in stores. Instant online games now account for 44 percent of the lottery’s total revenues.
About 31 percent of the income from draw-based games goes to good causes, compared with about 9 percent from scratch cards and 12 percent from instant-win games.
Heather Wardle, an expert on gambling research at Glasgow University, said she found a significant association between scratch cards and problem gambling. She said: “Engagement in traditional lotteries does decline over time and companies rely on products like scratch cards and they are riskier,” she said.
Matt Zareb-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 for the license as if it’s a military contract.”
Annual returns to good causes are now over £500 million higher than they were at the start of this license, even though the percentage rate of return is lower, Camelot said.
The lottery operator says its products are very different from those offered in the mainstream gambling sector and data showed the risk of problem play associated with lottery products was very low. “We abide by rigorous controls, with numerous checks and balances in place to ensure that lottery games are safe and enjoyable for players.”
