Lotteries: Limits on Prize Values

Rosena Allin-Khan Excerpts

Tuesday 12th December 2017 Westminster Hall

[Dr Rosena Allin-Khan (Tooting) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Edward. I thank the hon. Member for North West Norfolk (Sir Henry Bellingham) for securing this debate.

As many Members have said, society lotteries do fantastic work across the country and support a wide range of key local causes, including hospices, air ambulances, sports clubs, health charities, animal welfare and support for the elderly, and many other charities across the globe. At a time when Government budgets have been cut across all Departments and in local government, some of that support has been vital.

Hon. Members will agree that there are fantastic examples of good causes being supported in our constituencies. In Tooting, for example, a local day care centre was the recipient of a new garden, a health space was created for young homeless people, a new project to help older people get online was started, and many other such groups have received essential funding. Society lotteries are a force for good, and we welcome all efforts by hon. Members to consider ways to make the system better. We must give this sector a greater degree of certainty and clarity about its rules and governance, to ensure that maximum funding is available for good causes. With that in mind, will the Minister consider raising the minimum good cause contribution for larger society lotteries?

I agree with some of the recommendations made by the Lotteries Council, and believe that their members’ No. 1 priority is to generate more income for good causes each year. Deregulation must not come at the expense of those good causes. The system and any changes to legislation that we consider must put good causes at its heart, and they cannot be forgotten in the rush to cut red tape.

I support calls for greater transparency in society lotteries, and information about where the money goes should be readily available. Given the data-driven society in which we live, why is it not the norm for us to be able to see how each lottery’s proceeds are spent? If we could see what portion of each ticket is spent on causes, prizes and expenses, that would increase trust in the system, which is especially important if the Government are considering raising the annual turnover or draw limit. Will the Minister implement the Committee’s recommendation of a 35% cap on operating costs for the largest lotteries?

We must be diligent in ensuring that caps on prize limits reflect the current political and economic climate, and that any renegotiation of the cap does not increase or promote bad gambling habits. Have the Government assessed the impact that increasing the prize caps may have on gambling habits? The Minister and I were both at the Gamble Aware conference last week, where that issue was raised.

One major concern that is often cited is the potential competition that the deregulation of the society lottery sector may bring to the national lottery. I believe that one main national lottery must be retained to maximise player participation and the financial benefits for good causes, but we must consider how the national lottery is set up and managed, given its recent drop in contributions. One organisation that is missing out is the Heritage Lottery Fund, which has announced that its budgets have been cut by more than £200 million. I am keen for the Government to have a plan to ensure that fantastic organisations that do incredible work across the UK do not lose out. What assessment has the Minister made of the impact of the reduction in national lottery good cause funding?

Does the Minister believe that expanding the ability of society lotteries to increase their prize draws would have a negative effect on the national lottery? Given that the current turnover and draw limit were set in 2005, it is right to look again at the rates and, potentially, to raise them. The Culture, Media and Sport Committee, as it then was, made a number of recommendations in 2015, but the Government have yet to take any action. Lotteries have been left in limbo for years, and the Government need to provide greater clarity about their intentions. Can the Minister tell me when the Government, whatever their decision, will make an announcement on any changes to the limits?

I said at the start of my remarks, and I think we all agree, that the main aim of society lotteries is and should remain to raise money for those who seek to do the best they can for the people at the heart of our communities. Motivations for playing the smaller lotteries, which are often tied to particular causes, are different from those for the national lottery, which people play to win for a life-changing amount. Both kinds raise millions for good causes, but they are distinct, and when considering easing the regulations on society lotteries, it is important to maintain that distinction. Any rises in prize thresholds must ensure a balance between the ability of society lotteries to raise more money for good causes and the national lottery’s ability to do so being protected. If we move to liberalise the market, we must take steps to ensure that where the number of players, and the prize draws, increase the potential associated dangers or harms are fully assessed as part of the reforms.