National Lottery hit by scratchcard demand slump

SALES of National Lottery scratchcards have fallen as players grapple with a squeeze on their household finances.

Camelot, which has run the draw since its inception in 1994 and is due to be replaced in 2024 by new operator Allwyn Entertainment, said the cost of living crisis had slowed down sales “as consumers tightened their belts”.

However, money raised for good causes hit highs not reached since the London Olympics, rising by £24m to £1.9bn in the year to March 2022. Total sales during the year were £8.1bn.

Nigel Railton, chief executive, said that sales dropped around 3pc, “predominantly driven by scratchcards”.

People are also changing their spending habits on the main National Lottery draw.

Mr Railton said: “We have regular players at play every week. We have occasional players that play every couple of weeks, and have infrequents that come in maybe once a month when jackpots get to certain levels.

“We are starting to see, potentially, regular plays becoming more occasional as a search for more value in jackpots. They will only play Euromillions when it is over £100m.

“[Customers are] choosing when to spend, as opposed to not being a lottery player.”

The results come with Camelot locked in a make-or-break legal battle with the Gambling Commission over its decision to select a new operator from 2024.

The Birmingham-based regulator has selected Allwyn Entertainment, the gambling group owned by Czech billionaire Karel Komarek and which has Olympic champion Lord Coe as an adviser, as “preferred bidder” to run the National Lottery from 2024.

Lord Coe stepped down as a member of the House of Lords in January to take up the role on Mr Komarek’s board.

Camelot has challenged the decision in the High Court. Judges are considering whether the regulator can press ahead and sign a contract with Allwyn.

The merits of the decision are due to be argued at a hearing in October.

A key issue in the run up to the Gambling Commission’s decision was the sale of National Lottery scratchcards, with MPS calling for tighter restrictions amid concerns about problem gambling.

Sales of scratchcards, which have been on offer for two decades, have increased over the last decade. Their sale is on instruction by the Gambling Commission and is not expected to be curbed by the next licensee.