Lottery good causes cash faces further £2bn shortfall

Lottery funding for good causes raised during the present seven-year licence period to 2009 could suffer a massive shortfall, new estimates reveal.

Even if Camelot's present ticket sales are maintained, the total going to charities has been estimated at £9.6bn, £2.6bn less than the £12.2bn it predicted during the bidding process.

The estimate – from analysis by the Financial Times – is £900m less than the £10.5bn raised in Camelot's first seven-year licence period, and does not take into account the £2.2bn to be diverted from good causes to pay for the Olympics.

A Camelot spokesman said the £9.6bn estimate before Olympic deductions made "unjustified assumptions" about future sales but would not offer an alternative prediction.

Camelot's bid for a third seven-year licence, to extend its contract to 2016, is expected to be confirmed in August, since its only rival is the little known Indian lottery firm of Sugal & Damani.

Meanwhile, the most recent Camelot annual report has revealed that the total salary package of chief executive Dianne Thompson went up 44.8 per cent, from £654,000 in 2005 to £947,000 in 2006. Over the same period, lottery ticket sales went up 5.17 per cent or £246.7m to just over £5bn and funding for good causes rose 3.74 per cent or £50.5m to just under £1.4bn.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus