Where does lottery money go?

Is lottery money fairly split between eligible parties?

Given the fact that many people are raising questions about how exactly the lottery money is distributed after the tickets are sold, the operators try to keep things as transparent as possible. Contrary to popular belief, not all the money is used for fueling the prizes and paying taxes and the operator only keeps a small percentage to cover its fees and to ensure its profit margin. Much of the lottery money is donated to charity, and those who sell the tickets are also enjoying a fraction of the total amount.

Half of the lottery money pays the price

The National Lottery is one of the most cost-efficient in Europe and Camelot is very proud of its achievement, especially with Good Causes receiving substantial funding. The operator has decided to double the ticket price starting this year, which makes it even more important to explain where lottery money will go. As they expect to have their third license awarded very soon, they claim that 50% of the total revenue will be spent to pay those who win the jackpot and lower tier prizes.

It is a significant amount and despite the fact that there are other lotteries worldwide who distributed a higher percentage for this purpose, the jackpots are still remarkable. The decision about how lottery money is supposed to be allocated doesn’t rest with Camelot, something that the operator tries to emphasize. They have nothing to be ashamed of, as the operating costs would only consist of 4% while the retailers working for Camelot will receive an additional 5% in sales commission.

Good causes receive 28% of lottery money

The idea to direct more than a quarter of revenue towards charity is much appreciated by both lottery players and regular citizen. It is yet uncertain whether the 28% will be kept or slightly decreased, but as the ticket price will rise, so will these amounts. Those who are curious how this lottery money is distributed, should note that starting from April 2012 40% goes towards the environment, education, health and charitable causes, while the remaining cash is equally split between sports, arts and heritage.

The National Lottery has been around for almost 3 decades and since its inception, £29 billion has been raised for various nonprofit organizations and individuals in the name of good causes. In addition to that, lottery money that remains unclaimed by the winners is also going to help those in need. Although it is only a pale consolation for those who missed out on a once-in-a-lifetime opportunity, it’s still good to know that all those millions are spent on something noble. The percentage change, and lottery money are not distributed in the same manner all over the world, but very similar principles apply.

Read about the Lottery operators and charity now.

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