Olympic Lottery Distribution Fund Payment

Background

Camelot makes payments to the National Lottery Distribution Fund and Olympic Lottery Distribution Fund based on the numbers of tickets/plays sold and the prize payout on these games.  These funds are drawn on by the organisations that support projects that relate to the 2012 Olympics, arts, heritage, health, education, sport and communities.

Condition

Paragraph 9(2) of Schedule 1 of the licence granted under Section 5 of the National Lottery etc. Act 1993 (as amended).

Description 

With effect from 1 April 2006, all Interactive Instant Win games were designated as Olympic lotteries.  The payment made to the Olympic Lottery Distribution Fund did not take this change into account and was subsequently underpaid by £30,622.06 with the National Lottery Distribution Fund being overpaid by the same amount.  

Regulatory Action

The Commission wrote to Camelot, considered its response and subsequently decided that there had been a contravention of the licence requirement.  One of the Commission’s key concerns is that all funds due to the good causes should be transmitted to the National Lottery Distribution Fund or the Olympic Lottery Distribution Fund in a proper and timely manner. A licence breach was recorded on 23 August 2006.  

Outcome

Under the terms of the licence granted under Section 5 of the National Lottery etc. Act 1993 (as amended) Camelot was charged penalty interest at 7.5% for seven days on the underpayment of £30,622.06.  Payment was received for the Olympic Lottery Distribution Fund on 11 April 2006. Camelot did not seek a balancing adjustment in respect of the overpayment to the National Lottery Distribution Fund.