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Camelot

Serving the nation’s dreams

Corporate Responsibility Report 2008

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. To make sure we operate within the framework of the Act 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.

• The Government through the Department for Culture, Media and Sport (DCMS) is responsible for National Lottery–related legislation 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 sends the Good Causes money it raises to the National Lottery Distribution Fund (NLDF) and the Olympic Lottery Distribution Fund
• The NLDF, which distributes funds to the Good Causes approved by Parliament via the NLDBs, 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 National 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. The third Licence to operate the lottery was awarded to Camelot in August 2007, following the submission of a bid which we had taken two years, one month and nine days to research and write. The bid included proposals to create more winners, increase returns to Good Causes and ensure The National Lottery remains one of the most cost-efficient in the world. The new Licence begins in February 2009 and will run for 10 years, with the potential for a five-year extension. Read more about our transition plans for the third Licence.

Which Good Causes?

Lottery funding is allocated to eight Good Causes: health, education, environment, arts, sports, heritage, charities and the voluntary sector. For more information see www.lotteryfunding.org (opens in new window).

In 2007/08 the lottery raised £1,454 million for the Good Causes, averaging over £25 million a week (this figure includes unclaimed prizes and interest payments). Since the lottery was launched we’ve raised more than £21 billion has been raised, funding over 294,000 projects across the UK. That is an average of more than 101 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 supporting money for the London 2012 Olympic Games and Paralympic Games here. You will also find here information on how we work with the National Lottery Promotions Unit to publicise Good Causes and how 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. Firstly, we have a clear public purpose in rasing money for Good Causes as well as its own dedicated regulator, something which is enshrined in legislation. However, Camelot not only fulfils its regulatory requirements for player protection, but continues to set the agenda in demonstrating the highest levels of corporate responsibility.

Our games are played by a large number of people, spending relatively small amounts of money. Around 70% of the UK adult population play National Lottery games on a regular basis, but the average player spend is still only £3.05 a week.

National Lottery games are also considered 'low-risk' compared to other forms of gambling. For more information, see Responsible play. We have only a relatively modest market share, compared to the rest of the gambling industry, only a relatively modest market share. In 2006 ticket sales accounted for just 7% of the UK gambling market in comparison with 69% spent with bookmakers and 15% on gaming machines (source: Independent Study by Henley Centre).

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