The United Kingdom’s National Lottery sales achieved an unprecedented peak in the initial six months of the 2021-22 fiscal period (beginning April 1st and concluding September 25th), reaching a staggering £39.6 billion (€47.2 billion/$53.1 billion).
Camelot, the entity responsible for operating the UK lottery, attributed this surge in sales to exceptional digital performance and groundbreaking advancements in draw-based games, coupled with the substantial brand recognition generated by the UK’s extensive coverage of the Tokyo Olympic Games.
Draw-based games constituted the dominant portion of Camelot’s first-half revenue, experiencing a 3.6% increase to £22.3 billion, fueled by consistent growth across all offerings within its portfolio.
Although there were fewer instances of rollovers for EuroMillions, Lotto featured several “must-win” draws, which triggered Camelot’s “rollover” mechanism, leading to enhanced prizes for all successful participants.
Regarding National Lottery scratchcards and online instant win games, sales expanded by 1.6% in the first half, reaching £17.3 billion. Camelot attributed this growth to robust retail performance following the relaxation of COVID-19 restrictions in the UK.
Consequently, in-store scratchcard sales witnessed a 6% increase.
Although there was a dip of 8.8% in online instant win game sales, lottery sales rose by 7% annually. However, the lottery organization also mentioned that scratchcard sales are still below pre-pandemic levels as purchasing habits continue to change.
The lottery organization also stated that total retail sales for all products reached £23.4 billion during the period, a 4.5% jump compared to the previous year, confirming the channel as the National Lottery’s biggest. Retailer commissions rose by 5.1% during the period, reaching £133 million.
The lottery organization works with roughly 44,000 retailers across the UK and further expanded its network in the first half of the year through new partnerships with Aldi and Iceland supermarkets. These partnerships mean National Lottery draw games are now obtainable at checkout in about 1,900 stores throughout the UK.
Meanwhile, digital sales hit a record £16.2 billion. This represents an annual increase of just 0.2%, though this follows a strong first half of 2020 for digital sales, when sales climbed by 39.1% due to the closing of retail stores during the COVID-19 pandemic, which prompted players to go online.
Mobile sales increased by 1.8% to a record £11.5 billion, which the lottery organization said reflects the growing trend of consumers buying via smartphones. This growth was driven by more than 795,000 new online registrations.
The National Lottery paid out £22.7 billion in prizes to players during the period, a rise of £30.6 million compared to the previous year, and in the process created 184 new millionaires.
Camelots licensing accord stipulates that roughly 1% of sales are retained as profit, while 4% is allocated to operational expenditures. Following the disbursement of bonuses and operational costs, the bulk of the funds are channeled to charitable organizations. Total contributions for the six-month period reached £884.5 million, reflecting a 2.4% rise from the previous year.
Since its inception in 1994, the National Lottery has returned over £45 billion to worthy causes.
“With overall National Lottery sales experiencing robust growth and public participation at an elevated level, we are once again showcasing that our strategy of providing consumers with a diverse range of options in a secure and safe environment continues to make a substantial contribution to worthy causes across the UK,” remarked Nigel Railton, Camelots Chief Executive Officer.
“Lotto serves as a gauge of the National Lottery’s overall health, and I am immensely proud that, due to a number of enhancements we have implemented in the game, we continue to be one of the few major operators globally where sales of our flagship game continue to expand.”
Railton further stated that Camelots summer-long campaign, which emphasized the role of National Lottery participants in funding the training of Olympic and Paralympic athletes, was a pivotal factor in the heightened engagement. This initiative included two homecoming events at Wembley Stadium for athletes who competed in the Tokyo Olympics.
Mr. Hugh Robertson, the head of Camelot, stated that this has heightened public recognition of the National Lottery brand. It’s now connected to the favorable image formed after the declaration of a funding commitment during the initial stages of the COVID-19 outbreak.
“Exceptional half-year results demonstrate that the National Lottery is in excellent condition, backing worthy causes, participants, vendors, and the Treasury,” remarked Railton.
“Following four years of sales expansion, including record performance last year, I’m deeply appreciative to my associates and the broader National Lottery charitable causes distributor and retailer network for their contribution to this ongoing success narrative.”
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