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Lottery operator Camelot spends £59.2m of funds ‘for good’ on marketing

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The amount of cash from charity budgets ‘raided’ to promotional funds has tripled in the last three years, with their decision to renew their Lottery license.

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National lottery operator Camelot spent £59.2million of its funds on ‘good causes’ on marketing last year, the Mirror has learned.

The amount of money “raided” from charity budgets for promotional funds has tripled in the past three years, with the decision to renew the Lottery’s license.

And a leaked document from an industry source shows the company has massively increased ad spend to promote ‘National Lottery’ as a generic brand – separate from ads to promote the games. Play as Lotto or Euromillions.

The company spent £45.2 million on advertising for the brand in 2020/21 – up from just £1.5 million in 2017/18.

Meanwhile, some £18.8m of the ‘for good cause’ budget was spent on marketing in 2017/18, rising to £59.2m in 2020/21 – a doubling three times.

Under the terms of the license, Camelot is entitled to use the funds for good cause for marketing purposes to “support the long-term health of the National Lottery.”

The company has argued it needs more spending to maintain its “common voice” amid growing competition from social lotteries that don’t pay ticket sales tax.

And they deny the increase is related to the license renewal.

But critics have claimed Camelot will benefit from the promotion of the Lottery brand when their license is renewed next year.






Tory MP Alexander Stafford calls for National Lottery reform

Alexander Stafford, Conservative MP for Rother Valley, said: “Under Camelot, the National Lottery seems to have become a game of corporate interest, prioritizing PR and profits over actually creating out the difference.

“If promotion is the success we all aspire to, then we cannot let an organization like the National Lottery lose sight of what it is at its core purpose: to generate money for purposes that matter to us. the public, not to queue. the pocket of Camelot shareholders.

“These numbers show that the National Lottery is in urgent need of reform. In a time when the National Lottery can make a real difference to the lives of people across the country, it seems to have been partnered with Camelot’s marketing department. ”

And Alex Davies-Jones, Secretary of Labor for Technology, Digital Economy Gambling, said: “The National Lottery is an institution that is loved by many and does not have any vision or head. Any investment from the Government into the regional culture or grassroots sport, it has played an important role in ‘upgrading’ in places where the Government has failed.

“Labour has long called for a transparent approach to the National Lottery fund. People will be able to clearly see where their money is being spent.

“If true, these allegations could seriously damage the reputation of the lottery. When licenses are granted for renewal, transparency and maximization of funds for legitimate purposes should be at the heart of any future vendors’ approach to running the National Lottery. ”

In July 2020, the Gambling Commission approved a £25 million “marketing investment” to be withdrawn from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year.

The agency said the cash will “support the long-term health of the National Lottery by promoting positivity, loyalty and an emotional connection to the brand.”

A Camelot spokesman said: “It would be completely false to claim that increased investment in the marketing of the National Lottery was made for the benefit of Camelot. It is a well-documented matter that, after reviewing our strategy in 2017, we have committed to spending more to revive the National Lottery brand.

“This work to better connect play to purpose – in terms of generating money for Good Cause – is vital to the long-term health of the National Lottery and has resulted in increased participation in the National Lottery. Increase and increase profits for Good Cause, with a record Profit Cause from ticket sales last year and Good People’s annual profits now £500 million more than when the third license started in 2009.”

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https://www.mirror.co.uk/news/politics/lottery-operator-camelot-spends-592m-26322121 Lottery operator Camelot spends £59.2m of funds 'for good' on marketing

Fry Electronics Team

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