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There are interesting times ahead for the Lottery (p1), which since its launch in 1994 has arguably been instrumental in some of the most glorious arts achievements (as well as some of the most embarrassing fiascos) of the 20th Century.

Understandably Arts Council England?s Peter Hewitt has welcomed the new arrangements, no doubt relieved that, despite the National Audit Office?s slap on the wrists for early Lottery mismanagement (ArtsProfessional issue 50, May 19) arts funders will continue to hold the purse strings for arts Lottery funding. However, the relief may be premature, as evidence grows that the Lottery golden goose is past its prime and its egg yield is falling alarmingly. For the playing public, it seems the Lottery ?pound? has finally dropped and the minuscule odds of a major win ? comparable, perhaps, with a Henman win at Wimbledon ? is leading to a drastic fall-off in ticket purchase. The knock-on effects are seen everywhere in the grant distribution system and just this week it has been announced that the funding received by the Arts Council of Wales (ACW) has fallen from a high of £17.5m in 1997 to less than £12m projected for this year. Consequently ACW is about to announce the closure of the majority of its Mid and West Wales Lottery based grant schemes. Regional Directors in South and North Wales have been given approval by its Council to follow suit when their funds run out. Only Capital and Small Grants programmes will remain open. With ticket sales dwindling, a sizeable slice of Lottery money being ring-fenced for London?s Olympic Bid, and a cash-strapped Government failing to reassure many of us that Lottery money isn?t funding activities which should be undertaken through taxation, it seems that those with ambitious arts development plans should begin to look for alternative nest eggs.