Lotteries Regulation — House of Commons, 2019-07-16
Topic: Domestic Commerce
Miriam Jane Alice Davies (Conservative, Centre-right): With permission, Mr Speaker, I would like to make a statement in relation to lotteries. The national lottery and society lotteries contribute around £2 billion a year to good causes in this country, forming the backbone of giving in the UK. As preparations start for the competition for the next licence to run the national lottery, it is important that we ensure that the wider lotteries landscape is fit for the future and allows as much money as possible to be raised for good causes within a suitable framework. To ensure that there is clarity ahead of the upcoming fourth licence competition, I am today announcing next steps on society lotteries. I am also launching a consultation on increasing the age limit for playing the national lottery I turn to society lotteries. In June last year, the Government launched a consultation seeking views on proposals to reform the existing limits on society lotteries, which had not been raised for over a decade. I am aware that there has been strong support from across this House for the Government to increase the sales and prize limits for society lotteries, and that changes have taken a long time to come. Society lotteries are a vital source of funds for charities and other non-commercial organisations, and in 2018 alone they raised over £300 million. I am the Minister not only for lotteries but for charities as a whole, and I want the third sector to grow the pie overall for everybody’s benefit. I am aware that society lotteries are a vital funding mechanism for thousands of charities in many of our local communities, including air ambulances and local hospices The consultation aimed to ensure that society lotteries and the national lottery were able to thrive, and that society lotteries could continue to grow while we maintain the unique position of the national lottery and its ability to raise funds across the country by offering the largest jackpots. We heard strong arguments from both sectors, and I am grateful to everyone who shared their views. In coming to a final decision, I have balanced needs across the sector to ensure that returns to good causes can grow overall I am pleased to announce that I will raise the per-draw sales limit from £4 million to £5 million, and the maximum prize limit from £400,000 to £500,000, for large society lotteries. These increases will allow for significant headroom for most of the sector to continue to grow, and I am pleased that the Gambling Commission has agreed to carefully monitor these changes for any potential wider impact. This will enable us to analyse the impact of the changes over time. In addition, I will raise the annual sales limit from £10 million to £50 million. In recent years we have seen charities forced to slow their fundraising from lotteries as a result of the current limits, or to adopt costly alternative structures to avoid breaching them, thereby increasing admin costs and diverting money away from good causes. Indeed, one charity told us that introducing such arrangements could cost £345,000, with additional running costs of more than £100,000 a year. A £50 million annual limit will reduce or prevent administrative burdens for society lotteries, and I fully expect to see an equivalent increase when it comes to the amount of money directed to good causes as a result of the lower admin costs and this increase. I will be watching that closely I am aware that many Members support a higher annual limit of £100 million. I share that ambition, but this is a significant increase and I want to be certain that moving to this much higher limit would in reality increase returns to good causes across the sector. I want to be assured that an appropriate regulatory regime is in place. It is therefore my aim to launch a further consultation, looking at adding an additional tier of licence with suitable additional requirements for the very largest lotteries It is also important that society lotteries demonstrate the highest levels of transparency. I am therefore pleased that the Gambling Commission is also planning to consult on measures to tighten the existing licensing framework for all large society lotteries, looking in particular at the information provided to players on how the proceeds of society lotteries are used and on the good causes that benefit. We will also be looking further at how best to increase transparency in relation to executive pay, and we will seek further advice from the Gambling Commission. I will look to legislate if these measures do not go far enough. There was less support for changing the limits for small society lotteries and, having considered the evidence carefully, I do not plan to increase those limits at this time. I have previously committed to laying Camelot’s response to the society lotteries consultation in the Library, and I will also lay the other key responses that my Department received The age of 18 is widely recognised as the age at which one becomes an adult, gaining full citizenship rights and responsibilities. At present, all lotteries can be played from the age of 16; that is one of the few exceptions to the age limit of 18 for gambling products. In addition to the option to raise the minimum age to 18 for all national lottery games and to retain the current limit of 16, I am also seeking views on a differentiated approach that would increase the minimum age for instant-win games only. That includes scratchcards and online instant-win games My initial view, based on the evidence reviewed so far, is that such a split could be the best approach. This takes into account the fact that the risk of harm associated with playing the national lottery is the lowest for any form of gambling. We know that the risk of harm is slightly higher for instant-win games than it is for draw-based games such as Lotto. Given that the national lottery matters so much to so many people, I am keen to see further evidence in this area and hear what others, including operators, distributors and retailers, think about any potential impacts and benefits of any change This year, the national lottery celebrates its 25th birthday. Mystic Meg herself could not have predicted how successful it would be in that time, raising over £40 billion to support our local communities, protect our heritage, enhance the arts and transform funding across our sports. The national lottery has been at the very heart of creating, protecting and driving much of what we love. Each week it raises around £30 million for good causes. Since 1992 it has funded more than 4,000 world-class UK Paralympians and Olympians, and each year it invests around £325 million in protecting some of our most prized national heritage. It has funded the development of our artistic talent, and access to art. It has ensured access to sporting opportunities for people in all communities, alongside its support for 10,000 charitable causes each year, with more than £500 million of funding. I thank our national lottery players, the 12 distributors, the Gambling Commission and my Department for making that all possible Today’s announcements give clarity to those interested in running our national lottery when the current licence expires in four years’ time. It also gives our society lotteries greater capacity to continue to increase their work in the constituencies of my many colleagues in the Chamber. I look forward to seeing the real benefits of the changes for charities and good causes that are supported by all our lotteries across the UK. I commend this statement to the House.