The popularity of draw-based games improved returns to good causes last year, but heavy reliance on retail sales points to a “challenging” year ahead for National Lottery operator Camelot.
Dylan Nolte on Unsplash
National Lottery returns to good causes grew to almost £1.8 billion in 2019/20, an increase of £181m – over 11% – on the previous year.
£360m goes to the UK’s national arts councils for distribution across the four countries of the UK.
As last year, Camelot top-sliced its returns to good causes to pay for some of its own expenses. In a deal struck with the Gambling Commission, the company is permitted to divert money from good causes for marketing spend aimed at countering the competition posed by ‘synthetic’ national lotteries. Last year that amounted to £56.6m.
Ticket sales growth
Total Lottery ticket sales last year reached £7.9 billion, an increase of nearly £700m on the previous year.
For the first time in many years, good causes benefited disproportionately from this upswing because sales for draw-based games – which generate a higher % return to charities than scratchcards and other instant win games – saw a significant increase.
Now the fifth largest lottery in the world by sales, Camelot is keen to defend itself against accusations of encouraging irresponsible gambling. The company points out that in terms of per capita spend, it is just 59th in the world, which underlines its strategy “to encourage lots of people to play but to only spend relatively small amounts”.
Uncertainty ahead
Sales through mobiles and tablets reached a record £1.6 billion, and total digital sales reached £2.5 billion. But this figure is dwarfed by retail sales of £5.4 billion.
The heavy reliance on retail is warning signal for the current year, when many retail outlets have been closed and the public has been told to stay at home.
Announcing the results, Camelot CEO, Nigel Railton, said: “Like many businesses, Camelot has seen disruption as a result of the pandemic – particularly in retail. But, thanks to a combination of the foundations we’ve laid over the last three years and some urgent interventions to respond to the current situation, our sales are currently proving resilient. That’s not to say there is no impact, but the business is adapting and continuing to adjust well to the changing situation…
“With the ongoing uncertainty, the year ahead will inevitably be challenging. But I’m very confident that we’re in great shape to meet those challenges – and that we have the strong track record, creativity and determination required to continue generating vital funds for those who need it most in the UK.”
 |