Launched in 1994, Camelot, the UK’s National Lottery operator, has made thousands of lucky winners millionaires. Only recently, the operator has been under fire because of its instant win games that are available via mobile devices. Now, a recent report urges Camelot to contribute more to good causes.
Good Causes Receive Different Percentage from Different Games
Currently, Camelot’s draw-based games allocate 31% of the income toward good causes. In contrast, the highly popular instant-win games contribute only 12%, while only 9% of the income from scratch cards goes for good causes. One reason behind the lower good causes margin is that more money is allocated toward prizes. On the other hand, this contributes by making those games more popular. Regardless of the percentage difference, since 1994, Camelot has raised some £43 billion ($58.4 billion) for good causes.
But not everyone agrees that Camelot is contributing enough to good causes. Last week, Sir Iain Duncan Smith, the vice-chair of the all-party parliamentary group on gambling-related harm spoke to the Guardian, saying “there should be a fixed percentage on the amount that goes to good causes.” Moreover, he outlined that Camelot is starting to look just “like any other gambling company.”
Return to Good Causes Is Higher, despite the Lower Percentage
In its defense, Camelot said that its products are significantly different than the usual gambling products. Moreover, the operator acknowledged that based on data, the risks of problem gambling-related to its products are very low. The operator added that it is subject to strict rules and regulations that aim at ensuring a safe gambling experience for the users of the lottery games.
“Annual returns to good causes are now over £500m higher than they were at the start of this license, even though the percentage rate of return is lower.”
Additionally, Camelot pointed out that the annual returns to good causes have increased by £500 million ($679 million) when compared to the start of its license. Moreover, this increase comes despite the lower percentage of return. According to the operator, focusing only on the amount raised for good causes results in “a deliberately misleading and damaging picture of the health of the national lottery.”
Camelot explained that the national lottery games are more attractive for the players but they also offer generous payouts. In conclusion, the operator said that this results in high income to the Treasury, as well as records sales and prize payouts.