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National Lottery

Volume 450: debated on Tuesday 10 October 2006

To ask the Secretary of State for Culture, Media and Sport how much superdraws have contributed to the funds raised by the national lottery for good causes since they were introduced; and if she will make a statement. (90150)

There have been 72 national lottery guaranteed jackpots, or superdraws, since they were first introduced in 1995. In total, they have contributed £776,966,865 to the good causes.

To ask the Secretary of State for Culture, Media and Sport what the source is of the money paid out on national lottery superdraws; and how many draws there have been since they were first introduced. (90151)

There have been 72 national lottery guaranteed jackpots, or superdraws, since they were introduced on 7 January 1995. Of these, 52 took place under the first and interim licence periods, with a further 20 taking place under the second (current) licence period.

Under the first and interim licence periods, funding for superdraws was taken from the prize target shortfall. The shortfall was the difference between the amount of revenue that Camelot’s 1994 bid anticipated paying in prizes and the actual amount paid. Following the funding of the superdraw, the balance of the shortfall, together with the interest generated on it, passed in full to the National Lottery Distribution Fund (NLDF).

Under the 2002-09 licence, which took effect on 27 January 2002, there has been a change in the way that superdraws are funded. The increased prize payout for a superdraw is now funded jointly by the NLDF and the operator (Camelot) in the proportion that they benefit from incremental sales. Since superdraws use funds which would otherwise be destined for the good causes, individual superdraw events have to be approved by the National Lottery Commission.