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Boom in expensive scratchcard sales drives lottery growth amid problem gambling fears

Boom in expensive scratchcard sales drives lottery growth amid problem gambling fears

Wednesday 29 May 2024

Boom in expensive scratchcard sales drives lottery growth amid problem gambling fears

Wednesday 29 May 2024


More than £6m. was gambled in Guernsey on £10 scratchcards which have been scrapped in other jurisdictions over addiction concerns.

And the 2023 Channel Island Lottery Report continues to show a stark trend in the difference in scratchcard sales between Guernsey and Jersey.

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Pictured: How CI Lottery sales compare over time by sector in the islands.

Last year, the Bailiwick of Guernsey recorded scratchcard revenue of £13.28m, more than £200 per person, well ahead of Jersey which has 47,000 more people, where the figure was £9.26m.

A review has been ordered into the operation of the CI Lottery in time for when the current contract ends in 2027, partly driven by government concerns about the impact of problem gambling on the CI community.

In 2019, £10 scratchcards were taken off sale in the UK over concerns they encourage problem gambling, but they are the main driver of sales growth in the islands, the CI Lottery report shows.

The States Trading Supervisory Board is responsible for overseeing the lottery in Guernsey, with Deputy Charles Parkinson chairing the sub-committee.

"It is the view of the new CI Lottery Joint Political Oversight Group that a review of the Channel Islands Lottery is required, as we move towards 2027 and the conclusion of both the distributer and game maker contracts," said Deputy Parkinson in the report.

"Furthermore, as responsible custodians, STSB working collaboratively with the States of Jersey under the framework of the Channel Islands Lottery Political Oversight Group (CILJPO) would like more insight into the problem gambling scenarios relating to scratchcards and the impact on those more vulnerable in our communities.

"This review will help inform decisions on the future strategic direction of the CI Lottery. This review will also investigate whether draw based game options can form part of our plans post 2027."

Three reasons to review how lottery operates

There are three primary reasons driving the need for a review of the Channel Island Lottery which have become more apparent in the last year, he said:

1. There has been a considerable increase in sales volumes of the Lottery in recent years, primarily since the 'running of the game' was taken up through the strategic partnership with Scientific Games Ltd (SGI) in 2011. Government have concerns about the impact of problem gambling on the Channel Islands community.

2. There is increasing pressure from the Third Sector to ensure the lottery is maximising the return to good causes. Only by looking in detail at all of the arrangements can they be sure.

3. The UK's National Lottery format is changing following Allwyn's appointment as operator from 2024. As part of their license application to the UK Gambling Commission they presented proposals to minimise the impact scratchcards have on those more vulnerable players and increase the revenues towards worthy causes from draw based game scenarios.

One of the changes already introduced in the UK has prevented people buying more than 10 scratchcards at any one time online, and this is being extended to shops.

The lottery in numbers

In 2023, more than half of all CI lottery sales derived from £10 games.

£10 sales were up by 22% in Guernsey when compared to 2022.

Total lottery sales, including the Christmas draw, were £24.51m across the islands.

Total sales in Guernsey were £14.1m, up 6% on 2022.

Revenue from the Christmas Draw continues to decline.

It was £797,000 in Guernsey and £914,000 in Jersey, compared to peaks of £1.23m in 2015 and £2.26m in 2014 respectively.

The CI Lottery generates funds for charities and good causes in Guernsey which are distributed by the Social Investment Fund.

Last year SIF received £868,000, compared to £774,000 in 2022.

Beau Sejour also received £700,000 from the takings.

Since 2013, £14.5m. has been raised for these areas.

It cost £2.75m to run the Guernsey end of the lottery, £1.68m. in distribution and handling costs, £781,000 in game agents commission and £294,000 in other operating and administration expenses.

The prize fund amounted to £9.9m.

And £70,000 worth of prizes in Guernsey went unclaimed.

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