The Department for Culture, Media and Sport has launched a consultation on society lotteries, the National Lottery and other competing gambling products and their approach to the funding of good causes and ensuring player protection.

This consultation has been long-awaited. It was announced in 2012 to take place in 2013. However, Minsters delayed its opening in order to widen its scope. It was originally planned to focus on whether or not regulations for society lotteries needed tightening. The delay was said to reflect a change in market conditions, which included the growth of the National Lottery, the Health Lottery and gambling products which behave like society lotteries but are not currently required to raise fund for good causes.

There are seven questions in the consultation, including questions focussing on:

  • whether the amount that society lotteries are required to give to good causes is suitable;
  • whether the Gambling Act 2005 regulations deal adequately with umbrella society schemes, such as the Health Lottery;
  • the extent to which the National Lottery should be shielded from competition; and
  • whether the market share between the competing 'products' are appropriate and whether action should be taken to address any issues raised about market share.

The Minister for Sport, Tourism and Equalities, Helen Grant has said that the boundary between the commercial gambling sector and society lotteries and the National Lottery is no longer clear. This is due to the growth in society lotteries and competing gambling products with the related trend in online gaming.

It is considered that player protection and the continued raising of funds for good causes, which is a key aspect of the National Lottery, may require action on behalf of the government.

In his evidence to the parliamentary committee, Andy Duncan, the chief executive of the National Lottery operator, Camelot, cautioned against deregulation of society lotteries because this may reduce the funds given to good causes. He advocated a system that maximised the returns for good causes. These sentiments were echoed by other lottery chief executives, Dawn Austwick of the Big Lottery Fund and Carole Souter of the Heritage Lottery Fund. Ministers, Rob Wilson, the Minister for Civil Society, and Helen Grant, Minister for Sport, Tourism and Equalities, were also concerned about greater competition reducing the funds available for good causes.

The consultation is due to close at midday on 4 March 2015.

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