Our Responsibilities Our stakeholders

We raise funds for a wide range of good causes, and operate in a highly regulated environment – which means we have important relationships with a large number of individuals, groups and institutions.

Our stakeholders include anyone who is affected by Camelot or who has an effect on the way we do business.

They include our employees, our players and the wider public, our retailers and suppliers, the Government, the media, the National Lottery Commission which regulates us, the National Lottery distribution bodies, public-interest groups and the local communities in which we work.

This table indicates the value we gave to some of our stakeholders this year:

• Our Communities
• Shareholders
• Retailers
• Suppliers
• Government
• Players and winners
• Employees

Our Communities
The funds raised by our games benefit the communities in which we work. But we at Camelot also support our communities through the direct contribution of time, money and skills to charities and projects that are important to our employees.

In partnership with our employees we have developed a community investment framework that includes activities like volunteering, Give as You Earn, match-funding schemes and partnerships with local and national charities. For more information on our Team Camelot initiatives, see our chapter on Community Investment [link].

Shareholders
In 2010, one of the world’s largest single-profession pension plans, Ontario Teachers' Pension Plan (Teachers'), acquired Camelot Group.

The Ontario Teachers' Pension Plan is an independent organisation responsible for investing the fund and administering the pensions of 289,000 active and retired teachers in Ontario. The acquisition was made on Teachers’ behalf by its Long-Term Equities division, which is focused on direct investments that have steady cash flow and growth potential over the long-term.

 Lee Sienna, Vice President, Long Term Equities at Teachers' said of the acquisition: “Camelot is a world-class lottery business with substantial opportunities to grow both domestically and internationally.  Teachers’ takes a long-term view of its investments, providing an environment of stability, commitment and continuity in the businesses it invests in, and is committed to supporting Camelot’s management team in delivering its plans for the business.”

Retailers
Our network of more than 28,800 retail outlets, the majority of which are independent, remain the largest National Lottery sales channel, accounting for around 85% of all sales.

Despite challenging high street conditions, in-store sales grew by 5%, from £4,761.8m in 2009/10 to £4,999.3m in 2010/11.

We provide training and support to the retailers who are helping us to grow our sales. In this year’s retailer satisfaction survey, 94% stated that they were satisfied with their relationship with Camelot, and 69% agreed that Camelot was their best supplier.  Of those surveyed, 98% agreed that the National Lottery was valuable or extremely valuable to their business.

We give some of our retailers Community Outlet status to ensure communities in remote areas have access to our games. These outlets are exempt from our usual sales targets so they can keep selling lottery tickets even if volumes are low.

Suppliers
Our Procurement and Tendering Policy sets out the social, ethical and environmental standards we expect from our 800 suppliers. We hold annual supplier conduct reviews with key suppliers to assess criteria such as business ethics, recycling and take-back schemes, employment practices and business continuity practices. Of the suppliers who took part in the review last year, 75% improved their scores in 2010/11. 

This year, 171 suppliers took part in our annual supplier relationship survey, representing 83% of our total spend. Of these, 99.4% of suppliers agreed with the statement ‘I am satisfied with my overall relationship with Camelot’, and 97.7% agreed that ‘I am satisfied with the extent to which Camelot contributes to the long-term sustainability of my business’.

Also this year, to coincide with the review of our supplier relationship handbook, Camelot and Tomorrow's Company ran a supply chain workshop with a number of peer companies. The results of the workshop – which focused on building and maintaining relationships with suppliers – will be incorporated into our updated relationship management model.

Government
Most lotteries around the world have a close relationship with regional or national governments. The National Lottery operates under licence in the UK and is subject to Lottery Duty, while as a Company we are liable for Corporation Tax.

In 2009/10, we paid £11.5m in UK Corporation Tax (2010: £13.3m). The rate of Lottery Duty remains at 12% of ticket price and totalled £698.7m for the year (2010: £654.3m).

We continue to work with the relevant Government departments on the development of public policy and legislation that affect our business.

Players and winners
The National Lottery creates around four million winners a week across our portfolio of draw-based and instant play games in the UK. This year we celebrated the creation of the 2,500th Lottery millionaire, bringing the total wealth of all millionaires to date to £7 billion. This year also saw the biggest jackpot prize in our history, when a Euromillions Rollover jackpot of £113,019,926 was won by one UK ticket-holder.

While we create winners, we are also a leading proponent of socially responsible gaming, both in the UK and internationally [link to influencing others]. 

Employees
Camelot's success is built on the contributions of our 806 employees. In return we offer training and development as well as competitive salaries and benefits. In 2010/11, we paid £40.6 million in wages and benefits (2010: £40.7m). For more information, please see our Workplace report [link].