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National Lottery: Finance

Volume 474: debated on Wednesday 2 April 2008

To ask the Secretary of State for Culture, Media and Sport (1) what proportion of the cost of each national lottery ticket bought online goes towards (a) prize money, (b) good causes, (c) lottery duty, (d) operating costs and (e) profit for the national lottery operator; (198067)

(2) how the money received from national lottery tickets sold online is apportioned into (a) prize money, (b) good causes, (c) lottery duty, (d) operating costs and (e) profit for the national lottery operator.

National lottery ticket sales revenue is liable to lottery duty which is set by HM Treasury, currently at 12 per cent. The terms of the second licence to operate the lottery govern the way in which the remainder of the revenue is apportioned among prize money, good causes, retailer commissions and operator retentions (from which costs and profits are met). The second licence does not provide for this apportionment to be calculated on a game by game or sales channel by sales channel basis (the licence can be viewed on the National Lottery Commission website: www.natlotcomm. gov.uk <http://www.natlotcomm.gov.uk>). In particular, all relevant games are aggregated when calculating the appropriate contributions to the National Lottery Distribution Fund (NLDF) and Olympic Lottery Distribution Fund (OLDF).