Charities feel pinch as cut from lottery sales hits low

THE National Lottery gave its lowest proportion of sales to charity last year, research into its current licence found, as its online games soar in popularity.

It gave 21.3 per cent of receipts to good causes, compared to 27.75 per cent – its largest proportion – in 2012/13, a drop of 30 per cent.

Though it gave £1.8 billion to good causes last year, the largest sum since its inception in 1994, MPS say charities should have received more.

Meanwhile, Nigel Railton, the CEO of Camelot, the lottery licence holder, saw his payments from the company rise to £2.9million from last year’s figure of £1.3 million.

The company also spent £59million on marketing, up from £3.2million five years ago.

The decline in the proportion of sales given to good causes is a result in the increase in popularity of scratchcards and interactive instant win games. They give a smaller percentage of their sales to charity than lottery draws.

At the start of its third licence in 2009/10, 24 per cent of Camelot’s income came from these games, but that has since risen to 44 per cent.

Camelot said scratchcards and instant win games were necessary to maximise the sums it gives good causes, and that all charities care about the total amount they receive, not the proportion.

Camelot is one of four contenders hoping to win the next 10-year lottery licence. The winner is due to be announced in February.

Sir Iain Duncan Smith, vice-chairman of the Gambling Related Harm Allparty parliamentary group (Appg), said:

“I am frankly appalled that an organisation set up with the primary purpose of supporting charities is paying them so little, instead they are siphoning money to marketing, prioritising keeping their licence over supporting those in need.”

A Camelot spokesman said: “Annual returns to good causes are now over £500million higher than they were at the start of this licence, even though the percentage rate of return is lower.

“It’s this cash amount that matters to the beneficiaries of National Lottery funding – after all, they can’t spend percentages.”