Code of Practice on Top Prize Management

Code of Practice on Top Prize Management

Version 7 - November 2009

  • Introduction

    This Code of Practice on Top Prize Management ("the Code") for Scratchcard games has been approved by the National Lottery Commission ("NLC") under Condition 7(15) of the Section 5 Licence. The Code covers both the content of Scratchcards and Promotional Material.

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  • Definitions

    "Annuity Prize"
    means a prize of an annuity policy, which will be purchased on behalf of the winner to provide fixed equal cash payments so that the total cash value of the prize is spread over a period exceeding 12 months. The Prize may be paid in weekly, monthly or annual instalments;
    "Base Game"
    please see attached definition in Appendix 1;
    "Camelot"
    means Camelot Group plc, the holder of the licence under Section 5 of the Act to operate the National Lottery;
    "POS"
    means point of sale material distributed by Camelot for display at retailers;
    "Promotional Material"
    means all material designed to promote the Scratchcard game and includes, inter alia, POS and all forms of advertising;
    "Regular Payment Prize"
    means a prize where the total cash value is less than £121,000. Payment of the total cash value of the prize is spread over a period of no more than 12 months and is a fixed sum. The prize may be paid in daily, weekly or monthly instalments;
    "Seasonal Base Game"
    please see attached definition in Appendix 2;
    "Section 6 Licence"
    means a licence pursuant to which the relevant Scratchcard Game is authorised by the NLC as a constituent lottery;
    "Top Prize" and "Top Prizes"
    mean the highest prize or prizes that may be won in a Scratchcard game, and
    "Top Prize Games"
    means where a reference(s) to the Top Prize or Prizes is/are used in the name of the Scratchcard Game or, if the Top Prize or Prizes is/are referred to on the face of the scratchcard with greater prominence than other prize levels.

    Where not defined in this Code, words or expressions used in this Code, so far as not inconsistent with the same, shall have the same meaning herein as words and expressions defined in the Section 6 Licence.

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  • Categories of Scratchcards

    "Scratchcards" shall be divided into five categories, as indicated under paragraphs A, B, C, D1 and D2 below. In the event that Camelot plans to launch a Scratchcard game that does not fit within any of these categories, then it shall, prior to the launch of that game propose a revision to the Code. Such revision to the Code shall be submitted to the NLC at least two months prior to the game launch.

    • A. Games which offer lump sum cash prizes of less than £121,000 or Regular Payment Prizes

      Each game in this category shall have no less than 5 Top Prizes.

      Scratchcards in relation to such games may remain on sale until the end of the relevant Section 6 licence, whether or not a Top Prize remains to be claimed.

    • B. Games which offer cash Top Prizes and non-cash prizes with a total value of less than £121,000

      Where games offer a non-cash prize as a lower tier prize they may remain on sale while there are prizes to be won, at either the non-cash prize level or the Top Prize level. This is on the provision that the total value of the two prizes (the non-cash prize and the cash Top Prize) is not more than £121,000.

    • C. Games which offer non-cash prizes or cash prizes of £121,000 or more, or Annuity Prizes

      Players of games in this category expect that they can win one of the Top Prizes when they purchase a Scratchcard. For these games:

      • a. Camelot shall determine the number of Top Prizes, in the knowledge that once the last Top Prize has been claimed the game must be withdrawn from sale. The number of Top Prizes available at the launch of the game shall be communicated on the face of the Scratchcard.
      • b. Once the penultimate Top Prize has been validated, further distribution of the game shall be limited to those retailers whom Camelot reasonably believes are best able to sell it successfully.
      • c. Once the last Top Prize has been validated, Camelot shall, as soon as reasonably practicable and in any case within 24 hours, prevent further activations from taking place and issue a terminal message to all retailers informing them that the last Top Prize has been claimed. Retailers shall be permitted to sell Scratchcards that have already been activated, but shall not be permitted to activate new packs. Unactivated stock shall be removed from retailers as soon as reasonably practicable.
      • d. Communication that the last Top Prize has been claimed shall be made by Camelot as set out under the section on Promotional Material.
    • D. Base Games

      D1 £100,000 Base Game

      Each game in this category shall have no less than 5 Top Prizes.

      Scratchcards in relation to such games may remain on sale until the end of the relevant Section 6 licence, whether or not a Top Prize remains to be claimed.

      D2 £100,000 Seasonal Base Game

      Each game in this category shall have a minimum of two Top Prizes.

      Scratchcards in relation to such games may remain on sale until the end of the relevant Section 6 licence, whether or not a Top Prize remains to be claimed.

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  • Promotional Material

    • 1. In order to provide players with appropriate prize information:
      • a. detailed information of prizes available to be won at the start of the game shall continue to be provided in the Game Procedures; and
      • b. POS shall indicate in a way likely to be visible to players how they can find out the number of prizes yet to be claimed for an individual game.
    • 2. Top Prize Games
      • a. For any game falling under Category C, Promotional Material can refer to the Top Prize or Top Prizes available for the game, provided that a Top Prize can still be won. If the last Top Prize is validated whilst Top Prize POS is still in-store, or Top Prize advertising is still on air, Camelot must ensure that the messages are changed accordingly.
        • i. In the case of advertising, this shall be done as soon as is reasonably practicable and in any case within 24 hours.
        • ii. In the case of POS, this shall be done by instructions given to, and to be implemented by, retailers, within 10 days, such implementation to be through the use of reversible items or removing the old POS as appropriate.
        • iii. Camelot shall take all reasonable steps necessary to secure that retailers comply with such instructions.
      • b. Once the last Top Prize has been validated
        • i. Camelot shall take the following steps to inform retailers:
          • terminal message shall be sent to all retailers as soon as is reasonably practicable and in any case within 24 hours;
          • Telesales and the Call Centres shall be informed as soon as is reasonably practicable and in any case within 24 hours and shall communicate the message during telephone conversations with retailers;
          • Field Sales force shall be informed as soon as is reasonably practicable and shall up-date retailers when in store; and
          • Customer Business Managers shall be informed as soon as is reasonably practicable and shall update multiple retailers' head offices.
        • ii. Camelot shall take the following steps to inform players:
          • A retailer letter to be sent to all retailers within 10 days of validation, communicating the last top prize has been claimed;
          • An A4 poster shall be sent to all retailers within 10 days of validation, communicating that the last Top Prize has been claimed. Camelot shall use reasonable endeavours to ensure that the poster is displayed by all retailers;
          • E-Media digital screens shall be updated as soon as is reasonably practicable and in any case within 24 hours;
          • A press release shall be issued as soon as is reasonably practicable and in any case within 24 hours of validation;
          • the National Lottery Line shall communicate the message to all relevant callers;
          • the National Lottery website shall be updated within 24 hours.
    • 3. In all cases, once the section 6 Licence expires and the game is removed from sale, Camelot shall instruct retailers to remove the POS referring to prizes. Camelot shall take all reasonable steps necessary to secure that retailers comply with such instructions.

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  • Appendix 1 - "Base Game" Definition

    • Category D1: £100,000 Base Game
      Graphic £100,000 Base Game Scratchcard examples
      Definition

      The game is regarded as a core sales generator and versions of this game have been on sale since 1999. The design of the scratchcard has altered over time using regular colour changes to keep the ticket refreshed.

      Further enhancements to game play, design and top prize may occur over time to keep the game fresh - such changes will result in an amend to this definition and will require approval from the NLC. Standard features include a match 3 from 9 playstyle, and top prize of £100,000, with the prominent crossed fingers design.
      Top Prize £100,000
      Odds 1 in 4.90
      Pay out +/- 1% of 60.02%
      No. of Top Prizes No less than 5
      Ticket Price £1
      Autowin Feature Y/N N

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  • Appendix 2 - "Seasonal Base Game" Definition

    • Class D2: £100,000 Seasonal Base Game
      Graphic £100,000 Seasonal Base Game Scratchcard examples
      Definition

      The seasonal variation of the base game launched with a Christmas theme in October 2004 and delivers incremental base game sales.

      Current seasonal variations include Christmas, Halloween and Valentines Day themes. Further seasonal 'events' may also be considered in future.

      The design is based upon the £100,000 base game and standard features include a match 3 from 9 playstyle with an additional autowin feature.

      The prize structure is based on £100,000 base game, but ticket volumes and the number of top prizes vary according to desired length of time the game will be in market, although odds of winning prizes at each tier are at least as good as the standard £100K base game.
      Top Prize £100,000
      Odds 1 in 4.90
      Pay out +/- 1% of 60.03%
      No. of Top Prizes 2 or more
      Ticket Price £1
      Autowin Feature Y/N Y

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