Share

National Lottery ‘losing £1m a week’ to Health Lottery

National Lottery ‘losing £1m a week’ to Health Lottery
News

National Lottery ‘losing £1m a week’ to Health Lottery 5

Fundraising | Celina Ribeiro | 17 Feb 2012

The National Lottery estimates it is losing £1m in sales a week as a result of the Health Lottery, contrary to claims by the latter that it is expanding the lottery market.

National Lottery operator Camelot has conducted its first analysis of what impact the launch of the Health Lottery in October last year has had on its sales, and found that the newcomer has chipped away at the national game’s market share and says it expects its negative impact on sales to only increase.

“We believe that, at present, the National Lottery is losing around £1m a week in sales to the Health Lottery,” a spokesman told civilsociety.co.uk. “We estimate that this represents at least a third of weekly Health Lottery sales. Our analysis shows that the majority of this cannibalisation is being felt by National Lottery draws that take place on a Saturday – the same day as the Health Lottery draw.

“We expect this figure to rise sharply in the coming months as the Health Lottery has publicly stated it has a number of marketing initiatives and changes to its game plan to ensure it reaches the £50m it has promised to raise for health-related charities in its first year.”

Camelot said this £1m-a-week loss to the National Lottery equates to more than £20m a year less to the National Lottery’s good causes. It added that as the Health Lottery, a society lottery, pays no duty on sales, this represents a loss to the Exchequer also.

Health Lottery disputes 'negative impact'

Responding to the claims by Camelot, a Health Lottery spokesman said: ““Since our launch we have raised more than £10m for good causes. The Department of Media, Culture and Sport said recently that if current strong National Lottery ticket sales trends continue, National Lottery income could increase to £1.626bn in 2012/13 - £232m above what the Department had projected in September 2010.

“We have always believed the Health Lottery scheme, on behalf of the 51 CICs which participate, would inject a new lease of life into the lotteries sector, offering consumers choice without diluting the overall market. This has proved to be the case and we are delighted that people have recognised the scheme is a fun, new alternative which donates funds directly to local good causes in their areas.”

The Camelot spokesman confirmed that ticket sales for the National Lottery were higher in the last quarter of 2011, but the company has attributed this increase to the promotion of ‘Millionaire’s Month’ in December and high scratchcard sales around Christmas time, among other factors.

Just this week DCMS released figures showing that higher National Lottery ticket sales could, over the next five years, result in £1bn more to good causes than earlier forecast.

Since its launch, the Health Lottery and Camelot have been involved in an ongoing to-and-fro, with each disputing the other's figures and projections. The issue has drawn in both politicians and senior figures within civil society .

Camelot said that this detrimental impact on sales is just “one area of concern”, and that its primary issue is what it alleges is the unlawfulness of the structure of the lottery itself. Camelot is still awaiting a decision by the Gambling Commission on its complaints about the set-up of the Health Lottery

Ben Wittenberg
DSC
20 Feb 2012

At that rate it will take 26 years for the Lottery to lose as much as the government stole from BIG in one go to pay for London 2012 infrastructure projects in 2007.

Cheryl Walker
17 Feb 2012

You never know what to believe I've read so many different articles for and against both lotteries. I think if they're running side my side and giving money to charity it's up to people which lottery they decide to play. I stick to Irish lottery myself because the odds of winning are much better.

Muriel Simmons
Hon. Chairman
Allergy UK
17 Feb 2012

If £1m a week is going from the National Lottery across to the Health Lottery that would be a pretty clear indicator that people are showing where they want their money to go to. When the National Lottery first started there was considerable debate on whether it should be used to support the health services, it looks to me as if the public are now voting with their feet and their money.

Chris
17 Feb 2012

If the National Lottery is losing £1m of sales per week, and that is only 1/3 of Health Lottery sales, then the Health Lottery IS expanding the lottery market - lottery sales are up by net £2m per week.

Stephen Lulsley
Independent Commentator and Consultant
17 Feb 2012

"Camelot said this £1m-a-week loss to the National Lottery equates to more than £20m a year less to the National Lottery’s good causes."

Too true; you can bet that it won't come out of their exorbitant profits!

For the record, I have never done the Lottery and never will; I give my donations straight to the charities of my choice and cut out the 'middle man'.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Charities are not doing enough to defend themselves over pay, conference hears

1 Jul 2015

Charities are not doing enough in response to attacks on chief executive pay, a Directory of Social Change...

VAT tribunal judgment on investment management fees worth tens of millions to the sector

30 Jun 2015

Charities should be able to reclaim VAT on investment management fees, a tribunal has ruled, in a move...

St John Ambulance records first operating surplus in seven years

30 Jun 2015

First-aid charity St John Ambulance has recorded its first operating surplus in seven years, as its income...

Breast Cancer Now loses a quarter of its staff after merger

30 Jun 2015

Breast Cancer Now has reduced staff numbers by a quarter since the merger, through a mix of redundancy...

Charity ordered to seek advice on reclaiming £130,000 missing funds from former trustee

30 Jun 2015

A charity has been ordered to seek independent advice on reclaiming £130,000 of missing income after...

Trustees must answer to the public over high chief executive pay, says minister for civil society

29 Jun 2015

Trustees must do more to give the public confidence in charities, and must make sure charitable donations...

Contactless donations set to soar, CAF study suggests

24 Jun 2015

There is a “massive future” for charity donations using contactless payment technology, according...

RBG Kew denies pressuring TripAdvisor into deleting hundreds of negative reviews

22 Jun 2015

Kew Gardens has denied claims that it pressured travel site TripAdvisor into deleting negative reviews...

JK Rowling charity scoops top prize at Charity Awards 2015

19 Jun 2015

A charity set up by JK Rowling ten years ago to close children’s institutions and orphanages in developing...

Join the discussion

Twitter button

@CSFundraising