Where the money goes2:
50p
of every £1 spent on National Lottery games is paid out as prize money.
28p
goes to Good Causes.
12p
goes to the Government in lottery duty.
5p3
is paid to retailers in commission.
4.5p
is used by Camelot to cover operating costs.
0.5p
is returned to shareholders in profit.
1 Independent Study by Henley Centre.
2 On average over the second seven-year licence period.
3 5p is paid to National Lottery retailers on all National Lottery tickets sold, with 1% commission on all prizes paid out over £10, up to and including £200.
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Camelot & The National Lottery
The way we run The National Lottery is strictly regulated, with every area of our operations bound by guidelines set down by law, the Government and our regulator.
The National Lottery was initially established by an Act of Parliament which laid down how it would work. To make sure we operate within that framework we work closely with Government through the Department for Culture, Media and Sport (DCMS). DCMS appoints the National Lottery Commission which awards and regulates the lottery licence.
Our commitment is to raise as much money as we can for Good Causes. We're not responsible for distributing the money we raise, but we work closely with the 14 National Lottery Distribution Bodies (NLDBs), which decide where funds will be allocated. Read more about Good Causes.
Through the DCMS, the Government is responsible for all legislation relating to The National Lottery and for appointing and directing:
The National Lottery Commission (NLC), which awards the licence to run the lottery and regulates it.
Camelot, the lottery operator, which sends the Good Causes money raised to the National Lottery Distribution Fund (NLDF) and Olympic Lottery Distribution Fund (OLDF).
The NDLF, which distributes funds to the Good Causes approved by Parliament via the NLBDs, and the OLDF.
14 Independent National Lottery Distribution Bodies (NLDBs) - these bodies decide which beneficiaries should receive funding and award lottery grants accordingly.
Our licence
In May 1994 we won our first seven-year licence to run the lottery and on 14 November 1994 the first tickets went on sale. Our second seven-year licence was awarded in December 2000 and came into force in January 2002. This licence runs until January 2009. In February 2007, we submitted our bid to the National Lottery Commission for the third licence, which will take the lottery into the next decade. Read more about our third licence bid.
Which Good Causes?
There are eight Good Causes in all: health, education, environment, arts, sports, heritage, charities and the voluntary sector. For more information see www.lotteryfunding.org.uk (opens in a new window).
In 2006/07 the lottery raised £1,419* million for Good Causes, averaging over £27 million a week. Since the lottery was launched we've raised more than £20 billion, funding over 250,000 projects across the UK. That is an average of 80 grants for every postcode district in the UK and amounts to the biggest programme of civic and social regeneration since the 19th century.
Read more about how money for Good Causes is raised and distributed and our special role in raising money for the 2012 Olympic Games and Paralympic Games here. You will also find further information on how we work with the National Lottery Promotions Unit to publicise Good Causes and all the ways we involve the public in The National Lottery.
Our place in the gaming industry
There are a number of features of The National Lottery that set us apart from other forms of gambling. Players know that buying a draw-based lottery ticket or Scratchcard benefits Good Causes. And most of our sales come from a lot of people spending relatively small amounts.
Although roughly two-thirds of adults regularly play lottery games, ticket sales account for just 7%1 of the UK gambling market compared with 69% spent with bookmakers and 15% on gaming machines. The average weekly spend per player is £2.79, which gives us sales of £4.9 million.
Finally, National Lottery games are considered 'low-risk' compared to other forms of gambling. For more information, see Responsible play.
*This figure includes unclaimed prizes, other payments and £83.5 million investment income.