900 British Post Offices to cease lottery tickets and scratchcards' sales
Allwyn UK, the British arm of the global lottery powerhouse Allwyn Group, revealed to PA Media on Monday that approximately 900 British post offices will discontinue the sale of lottery tickets and scratchcards in 2024. This announcement comes after Allwyn's recent takeover of the UK's National Lottery, marking 2024 as the first year since the lottery's inception in 1994 that Camelot will not be at the helm.
In anticipation of this transition, Post Office Limited terminated its group contract with the National Lottery in 2023, allowing individual postmasters the option to stock lottery-related products voluntarily. This decision was prompted by requests from postmasters who sought to retain the full commission from lottery sales, as opposed to the previous system where the Post Office levied a 1% fee on such transactions. Throughout the past year, Post Office Limited has been assisting individual branches in adapting to the new licensing arrangements.
Despite Allwyn Group’s recent announcement, lotto and scratchcard enthusiasts need not worry because there are plenty of online operators offering such gambling products. This means it can actually work out better for such punters who choose to treat themselves and try their luck. This is particularly true if they sign up with NoDepositCasino.guide – a reference site with the biggest no deposit bonuses in the online casino world.
The problem with scratchcards
According to Allwyn, around 600 post office managers opted out of stocking lottery tickets and scratchcards due to religious beliefs or poor sales performance, while 200 were ineligible to sign up due to legal issues, such as county court judgments. They reported that Calum Greenhow, the Chief Executive of the National Federation of SubPostmasters (NFSP), pointed out scratchcards as a key factor behind many postmasters' decision not to enroll under the new 10-year license.
Mr. Greenhow cited the example of his Scotland-based post office, which would have continued selling lottery tickets if not for the requirement by the UK Gambling Commission to also stock and sell scratchcards. He explained that previously, Post Office Limited covered the costs of scratchcards under the group contract. However, with this contract terminated, individual branches are now responsible for purchasing scratchcards every six weeks. To break even, a branch would need to generate scratchcard sales of at least £400 per week. Faced with the risk of financial losses from unsold scratchcards, Mr. Greenhow and his wife opted not to enroll under the new license, a decision echoed by many other post office managers.
Previous sales
National Lottery sales hit a new high for the 2022-23 financial year, reaching a cool £8.19 billion. This total, recorded for the 12 months ending in March 2023, marked an increase of £99.6 million compared to the previous year and stood as the second-highest annual figure since the National Lottery's inception in 1994. Draw-based games remained the top choice among consumers, with sales hitting £4.74 billion, up by £9.19 million from the prior year.
Camelot attributed this growth to EuroMillions' robust performance, supported by 30 draws featuring jackpots exceeding £100 million. Despite fewer "Must Be Won" draws during the period, Lotto sales maintained a steady pace. On another front, instant sales saw a year-on-year increase of £7.7 million, reaching £3.45 billion. According to Camelot, this rise was primarily driven by players purchasing Instant Win Games as impromptu additions alongside their EuroMillions tickets.
The uptick in instant sales occurred despite a decline in scratchcard sales, which Camelot attributed to shifting consumer shopping patterns and the persistently challenging retail landscape.
Good Causes
Last fiscal year, the National Lottery contributed £1.88 billion to charitable endeavours, bringing the total amount raised since its inception to over £47 billion. However, while Allwyn officially assumed control as the new operator of the UK’s lottery just a few weeks ago, it has already acknowledged that it will not meet its promised short-term targets for donations to charitable causes.
This revelation comes amidst controversy surrounding Allwyn’s $80 billion contract, one of the UK's largest public sector agreements, predicated on these projections. The company faced numerous legal challenges from unsuccessful bidders. Formerly known as Sazka, the Czech-based company committed to raising £38 billion (US$48 billion) for charitable causes over the next decade, equating to a yearly donation of $3.8 billion. It seems Allwyn's tenure will continue to have a rocky start, but hopefully, it will stabilize in the coming months.
DISCLAIMER: This is paid for advertorial and is not the view of London World. If you suffer from a gambling problem or suspect somebody you know does, then we strongly suggest that you call the National Gambling Helpline at 0808-8020-133 to talk with an advisor for help and to make gambling safer for you or your loved ones. Remember all gambling sites and guides are 18+ only.
Visit these free gambling addiction resources: