Where the money goes
As operator of The National Lottery, Camelot is committed to maximising returns to National Lottery Good Causes through selling tickets in a socially-responsible way.
Camelot runs the most cost-efficient major lottery in Europe, with around 4% of total revenue spent on operating costs – a key factor behind it delivering, on average, over £35 million each week for National Lottery Good Causes in 2012/13. To date, National Lottery players have raised over £31 billion for these projects, with more than 420,000 individual awards made across the UK – an average of 135 lottery grants for every postcode district.
As has always been the case, the total amount which Camelot delivers to National Lottery Good Causes under its current licence depends on a number of variable factors, including the mix of games sold, the channels through which they are sold and the level of unclaimed prizes.
In the year ending 31 March 2013, 28% of total National Lottery revenue was returned to the Good Causes, while over 50% of total revenue was paid to players in prizes. Over the same period, 12% of total revenue was paid to the Government in Lottery Duty and around 5% was paid to retailers in commission. In line with the incentivised model introduced for the current licence period, Camelot's profit after tax is dependent on its performance, and was less than 1% of total revenue for the year.
The allocation of National Lottery funding
Although Camelot is responsible for generating returns for National Lottery Good Causes, it plays no role in the allocation of funding, which is the responsibility of 12 National Lottery distribution bodies, each with specialist knowledge of their sectors.
The income raised for Good Causes from ticket sales is paid by Camelot into the National Lottery Distribution Fund and then allocated to the distribution bodies according to a formula set by the Department for Culture, Media, and Sport. In the year to 31 March 2013, the money Camelot delivered for National Lottery Projects was allocated as follows:
- Health, Education, Environment, and charitable causes – 40%
- Sports – 20%
- Arts – 20%
- Heritage – 20%.
To find National Lottery Good Causes in your local area, visit www.lotterygoodcauses.org.uk/good-causes. Read the featured weekly Good Causes story to find out how one organisation has benefited from National Lottery funding and the difference it has made.