Operator News

UK – UK’s National Lottery reports record year despite decline in lockdown

By Phil - 3 June 2020

The COVID-19 lockdown saw lottery sales for Camelot, the UK’s National Lottery operator, spiral by 22.6 per cent in the first week following lockdown, however the operator reported a 1.3 per cent in retail sales for the year as a whole.

The EuroMillions experienced the worst dip with sales a third down by the end of March.

In its quarterly sales figures, Camelot revealed that sales had ‘shown improvement’ since the initial drop because some retail customers ‘moved to playing online.’
Chief Executive Nigel Railton said: “Our sales are currently proving resilient. That’s not to say there is no impact, but the business is adapting and continuing to adjust well to the changing situation.”

He warned that the biggest challenge for the lottery was ‘where the economy goes.’ “If the economy is doing well, we tend to do OK, so if there is a downturn that will impact us for sure,” he said.

Camelot announced record sales of £7.9bn for the year to the end of March, a 9.7 per cent increase on last year.

Over the same period, Camelot generated returns to Good Causes of £1,853.1m, an increase of £198.4m, up 12 per cent, which is even more significant at this critical time as National Lottery Distributors continue to fund vital work across the UK. This commitment will see up to £600m of National Lottery funding being directed towards UK charities and organisations to help tackle the impact of COVID-19.

Camelot Chairman, Sir Hugh Robertson, commented: “Thanks to this crisis relief package, hundreds of millions of pounds in vital funding has been repurposed to help those most affected by the coronavirus pandemic – providing, among other things, much-needed aid for communities, grants for sport initiatives to keep people fit and healthy, and assistance for thousands of other projects that are in desperate need of funding during this time. Anyone who has bought a National Lottery ticket should know they’ve played their part in making this possible.”

Mr. Railton added: “Three years on from our strategic review, we are seeing growth across all areas of the business. Crucially, our best-ever sales performance has delivered a £200m boost to Good Causes at a time when the UK needs it most.”

Camelot’s sales performance in 2019/20 means that The National Lottery continues to generate over £30 million week in, week out for Good Causes across the UK.
Camelot grew total sales of draw-based games by £455.3m to £4,537.1m, driven by improvements made to create a more compelling and distinct range of games. As players continue to experience the benefits of the changes made to Lotto in November 2018 (including bigger, fixed cash prizes and regular ‘Must Be Won’ draws where the jackpot is often shared among all cash prize winners), the company saw an increase in sales of the game – making Camelot one of the few operators globally to be growing its flagship lotto game. With a record roll series, EuroMillions also had an exceptional year, while The National Lottery’s newest game, Set For Life – which has so far created 16 winners of its top prize of £10,000 a month for 30 years – continues to grow in popularity and exceed sales expectations.

The company also grew sales of National Lottery Scratchcards and online Instant Win Games over the period by £243m to £3,368m. This follows work to give players a wider range of differently-priced products with varying themes – including a special 25th birthday game, as well as Friends and Love Island-themed games.

Accounting for nearly 70 per cent of all ticket sales, retail remains the largest National Lottery sales channel. Despite the ongoing challenges in the retail environment, Camelot grew in-store sales by £74.3m to £5,447.6m over the 12 months – underlining the effectiveness of the work it has been carrying out to support its retail partners. As a result, National Lottery retailers, many of them small independent businesses, earned £312.7m in commission over the period – an average of around £7,000 per store. Camelot has also made progress on implementing initiatives that reflect the shifting retail landscape. More than 150 Aldi stores now sell National Lottery products and the company’s trial with Iceland is progressing well. In addition, having made National Lottery tickets available at self-checkouts in over 550 Asda stores nationwide, the company is now in talks with other major supermarkets to do the same.

Camelot’s continued innovation and investment in The National Lottery’s digital channels led to record online sales of £2,457.5m over the period, an increase of £624m, and saw it exceed the £2bn sales mark for the first time. As part of this, the company grew mobile sales by £586m to an all-time high of £1,605.5 million, with sales through smartphones and tablets now accounting for around 65 per cent of all digital sales. Camelot’s continuing improvements to The National Lottery’s iPhone and Android mobile apps also drove record sales for this channel, while a brand new look and feel for the National Lottery website and apps at the end of last year has made them more user-friendly, easier to navigate and more engaging.

Mr. Railton added: “With Good Causes front of mind, our focus now is to forge ahead in making progress with our plans while maintaining operational resilience and flexibility. This approach will ensure we are ready to respond to a changing environment and that we are doing all we can to look after our players, our retail partners and National Lottery Good Causes. I would like to take this opportunity to extend a huge thanks to everyone involved with The National Lottery for their support over the last few months. To our players, who make a difference every time they buy a ticket. To our retail partners, who have continued to sell National Lottery tickets alongside essential products. To all of our employees, especially those who have continued to work on site to keep business-critical operations going. To the wider National Lottery family, particularly the National Lottery Distributors, who have done a tremendous job at prioritising funding for the people and projects who need it most. And to the government and our regulator, for working with us to keep The National Lottery running and delivering the huge benefits it brings to the nation.

“With the ongoing uncertainty, the year ahead will inevitably be challenging. But I’m very confident that we’re in great shape to meet those challenges – and that we have the strong track record, creativity and determination required to continue generating vital funds for those who need it most in the UK. All of us at Camelot are fully aware of the important role that we play every single day, and I feel immensely privileged to be part of an institution that makes a real difference.”