UK Government Holding GB£ 1 Billion Lottery Ticket
The UK government is sitting on a GB£ 1 billion lottery ‘ticket’ thanks to the National Lottery’s performance in recent years.
Lottery duty – the government receives 12% of lottery sales – rose by 7% in 2012, sending GB£ 817 million to the Treasury’s coffers.
At that rate the government will receive GB£ 1 billion in lottery duty by 2015.
Global Betting and Gaming Consultants’ Director Lorien Pilling commented: “Since 2007 the lottery duty the government has received has increased by 42% and the last few years have each seen record-breaking amounts of duty generated by the National Lottery’s performance.”
GBGC UK Lottery Duty Forecasts
On a global basis, lotteries have performed very well over the recent years, given the economic situation and fragile consumer confidence. In 2012 the global lottery market was worth US$ 122 billion in revenues and GBGC’s Global Gambling Report forecasts this will rise to US$ 150 billion by 2017.
GBGC Global Lottery Revenues 2011 to 2017
“The strong performance of lotteries is good for governments because many rely on the proceeds of their state lotteries to fund various areas of public life from welfare to education. In the UK the forthcoming ticket and prize increases will spur further sales increases and, therefore, increase the amount the government receives in duty. In the current economic climate GB£ 1 billion will be most welcome even though it won’t solve the UK’s fiscal problems.”
Lottery Ticket Price Increases and Bigger Jackpots
Camelot, the operator of the National Lottery, announced major changes to ticket prices and prizes at the start of the year. The cost of a Lotto ticket will increase from £1 to £2 from Autumn 2013. This is the first ticket price increase since the game launched in 1994. In addition, the prize for matching three numbers correctly will be increased from £10 to £25. Camelot also said that the Lotto jackpots would be bigger – around £5 million on Saturdays and £2.5 million on Wednesdays. Lotto’s jackpots have been falling as players are enticed by the much larger prizes offered by the Euromillions game.
Global Betting and Gaming Consultants (GBGC)
GBGC is a specialist, independent gambling consultancy based in the Isle of Man. Since 1998 GBGC has worked with clients on every continent: helping governments develop their gambling policy; advising gambling companies of all sizes on their strategy; and assisting investment banks and private equity with due diligence work.
GBGC also publishes the comprehensive Global Gambling Report, currently in its eighth edition – essential reading for gambling industry executives.
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