Acevo chief executive Sir Stephen Bubb has branded Richard Desmond’s new Health Lottery “a disgrace”, claiming it is likely to cannibalise National Lottery sales and mean less money for good causes.

“I don’t think Mr Desmond suddenly woke up one day and thought ‘how can I help health charities’,” Bubb told civilsociety.co.uk. “He intends this lottery to be a profit-making scheme and he is competing directly with the National Lottery because he is going to be selling his tickets in more retail outlets than the National Lottery. 

“And he is only giving 20p per pound to health charities whereas the National Lottery gives 28p in the pound to good causes, so if he does compete and it reduces the amount going to the National Lottery then charities will suffer.”

£100k top prize

The Health Lottery, which launches on Thursday, is operated by Richard Desmond’s Northern & Shell media company and offers a £100,000 top prize for matching five numbers. Four matching numbers will win players £500, while three will collect £50.

The draw will be shown in adverts on Saturday evenings on ITV and the Northern & Shell-owned Channel Five.

The operators have said they hope to raise £50m a year for health causes.

More than 40,000 retailers have signed up to sell tickets, while around 28,000 sell the National Lottery. A £20m marketing campaign will promote the launch.

Bubb dismissed as “spin” the idea that the voluntary sector does not benefit from the whole 28p that the National Lottery allocates to good causes from each pound. “The 28p is given to heritage, arts and sports organisations and nearly every single one of those is a charity,” he said. He went on to say that the money that has been diverted for the Olympics is a one-off situation and the Olympics will be over next year.

Duplicating admin costs

Bubb also criticised Desmond for setting up a whole new administrative structure to give the money away “when the Big Lottery Fund already does it very efficiently and effectively”.

“BIG gave away £1.3bn last year and £270m of that went to health charities.  If National Lottery sales drop as a result of this new lottery then that is worrying.

“If he is doing it on the back of this emotional pull of supporting health charities then I absolutely think he has to match the National Lottery, otherwise we are going to lose out as a sector.”

Health Lottery chief executive Martin Hall defended the disbursement ratio, stating: “If we’re giving more in prizes, there is less to give away.”