Camelot eyes annuity-style game to increase good cause returns
National Lottery operator reveals plans to revamp draw-based games portfolio in wake of Public Accounts Committee criticism
National Lottery operator Camelot has pledged to improve its draw-based games to increase the percentage of overall sales profit given to good causes.
Camelot faced criticism from the Public Accounts Committee (PAC) this week after its latest report found the operator’s profits were 122% higher in 2016-17 than in 2009-10, while money for good causes dropped by 15% annually.
The Committee said Camelot profits were well in excess of what had been envisaged when the operator was originally granted a 14-year lottery licence by the Gambling Commission.
Camelot said the drop in returns for good causes was down to changing attitudes towards lottery games, with instant play now the preferred method for most customers.
“We’ve seen an increasing preference for instant play games in recent years which is a by-product of changing consumer appetites and behaviour in general,” a Camelot spokesperson told EGR.
“Because they have a higher prize pay-out, instant play games return less in percentage terms to good causes than draw-based games like Lotto and Euro Millions.
“This is what has impacted returns to good causes as a percentage of overall sales,” they added.
The operator said that the average annual returns to good causes during the second licence period were £1.35bn, which is now up to £1.76bn during the current period, marking a 30% increase.
The spokesperson also told EGR that Camelot was planning to revamp its draw-based games to increase customer participation and money available to good causes as a result.
The operator’s plans include the potential release of an annuity-style lottery game scheduled for launch in 2019.
“We’re planning to make changes to Lotto later this year and, given the growing number of players who dream of long-term financial security rather than big jackpots, we’re currently exploring ways of satisfying this demand with an annuity-style game,” said the spokesperson.
“We’ve been looking at what they do in other countries, especially in the US, where annuity games that offer winners a set sum every month for the rest of their lives are hugely popular because they appeal to people who dream of lifelong financial security, rather than just big jackpots overnight.
“We also launched a new game called EuroMillions HotPicks in January and introduced a new draw day for our £1 Thunderball game at the same time,” they added.