Overseeing the transfer of funds

Good causes

The proportion of National Lottery income that goes to good causes is transferred from the operator to the National Lottery Distribution Fund (NLDF) or the Olympic Lottery Distribution Fund (OLDF). The payments made by the operator are made to the NLDF and OLDF on behalf of the Secretary of State, who oversees these two funds. We make sure that the operator’s payments to the Secretary of State are accurate and on time.

Prizes

There are different prize levels for different games, but on average, over the course of the second licence period, approximately 50% of Lottery sales was given out as prizes. It is a requirement of the operator’s licence that they transfer prize money into the Players Trust, to keep it secure and separate from other funds. Once in trust, these funds are under the control of an independent trustee and are out of the hands of the operator. We review all payments that the operator makes to the trust.

Unclaimed prizes

We check that prizes unclaimed by winners are transferred to the NLDF and OLDF as appropriate. These are prizes that have not been claimed within 180 days after the draw, if a draw-based game, or 180 days from the close of the game for Scratchcards.

Statement of Assurance

Each year, we produce a Statement of Assurance for the Department for Culture, Media and Sport (DCMS). This confirms that the operator’s weekly calculations of payments to the Secretary of State are correct.

This gives assurance that the primary contributions made to the Secretary of State by the operator are complete, accurate and timely and that all other payments due from the operator to the Secretary of State, such as unclaimed prize money, are correct.

 

Related Links

• Returns to good causes reporting

  We ensure that payments to the National Lottery Distribution Fund (NLDF) and Olympic Lottery Distribution Fund (OLDF) are accurate and on time. We compile a quarterly report on the funds that have been transferred.