Reducing regulations on society lotteries would mean organisations could better support good causes, according to a report published yesterday.
The Economic Impact of People’s Postcode Lottery report calls for an increase in society lottery turnover and draw limits in order to “substantially boost” the ability of organisations such as the People’s Postcode Lottery to better support good causes.
The report was commissioned by the People’s Postcode Lottery but produced independently by the Centre for Economics and Business Research.
The Culture, Media and Sport Select Committee launched an inquiry into society lotteries in July, and it is expected that the government will launch its call for evidence into society lotteries next week.
It is revealed that the annual direct contribution made to good causes by players of the People’s Postcode Lottery could increase to as much as £130.2m, up by £120m, if regulations governing revenue and prize sizes were relaxed. This could then lead to a total charitable income of £351.5m once the charity multiplier effects are taken into consideration.
The report highlights the multiplier effect, with every £1 in support from players of People’s Postcode Lottery leveraged by charities to, on average, generate an additional £1.70 in income. This provides a multiplier of 2.7, which when coupled with a simplification in society lottery regulations, means players of People’s Postcode Lottery have the potential to raise as much as £351.5m a year.
The report states that the key driver behind this “multiplier effect” appears to be the largely unrestricted nature of the funding provided by players of the People’s Postcode Lottery.
The report says evidence from other nations and UK-focused studies shows that relaxation of regulations are not likely to impact negatively upon the National Lottery.
It instead concludes that a “stronger society lotteries sector, more able to capitalise on economies of scale and able to continue its current growth is expected to generate increased funding for good causes and ultimately at near zero cost to public finances”.
Grant Baskerville, head of public affairs at the People’s Postcode Lottery, said: “The report represents a turning point in the debate on how best to regulate society lotteries. It provides unequivocal evidence that there is so much more our players could achieve for good causes with some very simple changes to existing regulations. “
The People’s Postcode Lottery, is a society lottery raising funds for, and building awareness of, charities and good causes in the UK and globally. It is part of a family of charity lotteries operating in the Netherlands and Sweden, which combine to make the world’s second largest private funder of good causes.
Mark Astarita, fundraising director at the British Red Cross, has backed the call for the government to simplify the regulations restricting the ability of society lotteries to achieve more for charities.
He said: I welcome this report, and indeed any evidence, that demonstrates the need for responsible reform of current society lottery regulations. The hoops that charities have to jump through are disproportionate.”
“Excessively tight restrictions can put charities off running lotteries and this limits the funds they have available to spend on their work. Players of People’s Postcode Lottery help charities like British Red Cross do more to support people in crisis, and simple reforms could enable the available pot of money to grow.”
Peter Lewis, chief executive of the Institute of Fundraising, said: “This report highlights the importance society lotteries have in the fundraising community. Simplifying existing regulations will allow even more to be raised by charities, delivering increased support to good causes at a time when they need this most.”
