UK National Lottery Donates $2 Billion+ to Good Causes in the 2021-22 FY

In the 2021-2022 financial year closing in March 2022, UK National Lottery made over £1.84 billion ($2.21 billion) worth of donations to good causes. The numbers were disclosed by a government report released earlier last week, indicating a slight increase of less than 1% from the previous fiscal year.

This growth trend, as marginal as it is, is not surprising as the report stated that there had been an increase in lottery ticket sales, even beating pre-pandemic numbers. The £1.84 billion was distributed across the four quarters as follows:

• Q1 (April to June 2021) – £420.7 million/$503.7 million
• Q2 (July to September 2021) – £418.4 million/$501 million,
• Q3 (October to December 2021) – £508.5 million/$608.9 million
• Q4 (January to March 2022) – £491.3 million/$588.3 million

It’s worth pointing out that Q3 saw the highest volume of donations to good causes in the just concluded fiscal year. Better still, in H1 2021/22, the UK National Lottery recorded its highest ever sales volume for any fiscal half in history, with £3.961 billion ($5.28 billion) worth of receipts.

Since its initiation in 1994, the UK National Lottery has contributed about £44 billion ($53 billion) to the National Lottery Distribution Fund. The donations have funded over 670,000 good cause projects of different sizes through its 28-year tenure across the UK.

Camelot-UKGC Battle for Fourth License Case On-going

The UK National Lottery has been run by the same company, Camelot UK Lotteries Ltd, for about three decades. However, towards the conclusion of the 2021-2022 financial year, the UK Gambling Commission named Allwyn Entertainment UK as its’ preferred applicant’ for the fourth National Lottery license – to be renewed in 2024. At the same time, the Commission named the interim license holder as the ‘reserved applicant.’

After the High Court approved UKGC’s recommendation, Camelot, International Game Technology, and Northern and Shell (also applicants for the 2024 license) asked the UK Court of Appeal for permission to appeal the decision. At this time, the Commission was getting ready to grant the license to Allwyn, but on July 14th, a Court of Appeal judge granted the permission, and the two parties proceeded with their petition. As a result, the suspension of the license issuance processes initially lifted by the High Court is back in effect. While a hearing date for the matter is yet to be set, it is most likely expected to happen during the week of September 12th.

The Commission has since maintained that its decision is valid and that the appeal only serves to delay the handover process. However, the gaming ombudsman added that it would respect the court’s judgment on the matter. A statement published on the gambling regulator’s official website reads in part:

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“We are, obviously, disappointed with this outcome but respect the court’s decision. The appeal process will generate challenges for the transition to the fourth license and further delay to the award of the license to Allwyn. We regret the decision by third parties to bring legal proceedings following the outcome of a highly successful competition for the fourth National Lottery license, actions which could impact transition to the Fourth License and, ultimately, funding for good causes.”

Good Causes a Priority for Future License Holders

Before arriving at the decision to settle for Allwyn Entertainment, the UKGC conducted what it termed a fair and open bidding process that left four companies battling it out at the very final stage. These included Allwyn, Camelot UK Lotteries Ltd, Sisal Spa, and The New Lottery Company Ltd.

UKGC’s CEO Andrew Rhodes reported that the National Lottery has grown to become a national asset and that the Commission had achieved its priority of attracting ‘a strong field of candidates’ to compete for the license. The Gambling Commission Executive Director John Tanner reiterated the CEO’s comments, elaborating on the criteria used to arrive at the final candidate, saying:

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“The Commission is grateful to all four applicants for their engagement in the competition. We were impressed by the overall standard of applications, including the range and quality of innovation proposed, and the high level of confidence and ambition demonstrated for the prospects of the National Lottery under the fourth license.”

As the events surrounding the current court case continue to unfold, eyes are on the beneficiary funds, which may be affected by the tassel for the fourth 10-year license. In court proceedings leading up to the appeal, Camelot has even warned that the numbers by the end of the next financial year may not be as high as in previous years.

Camelot has defended its current position in the National Lottery by pointing out that the repercussions of losing the license will be far more reaching than for any other contender, including IGT. Additionally, according to court documents, the company also cautioned that it would likely go bankrupt if it didn’t win the license.