The British National Lottery has achieved a record peak in sales, hitting a staggering £40.6 billion.
Camelot, the UK lottery operator, revealed that National Lottery sales reached an unprecedented high of £40.6 billion (€46.7 billion/$48.3 billion) in the initial six months of the 2022-23 financial year, fueled by robust digital performance.
Total sales from April 1 to September 24 exhibited a 2.6% increase compared to the previous year, marking the first instance in the National Lottery’s 28-year history that sales have surpassed the £40 billion threshold.
Draw-based games remain the most favored among consumers, generating £24 billion in sales during the first quarter, a 7.5% year-on-year rise. Camelot highlighted that EuroMillions performed exceptionally well, driven by larger prizes, including a £184 million jackpot in May.
Despite a reduction in sales-driven “must-win” draws during this period, Lotto also performed admirably, but sales of scratchcards and online instant-win lottery tickets experienced a 3.7% year-on-year decline to £16.7 billion, primarily attributed to a reduction in in-store scratchcard sales as foot traffic and shopping excursions decreased.
Examining the figures more closely, overall online sales experienced a 13.0% growth in the first quarter, reaching £18.4 billion, a record high for the National Lottery.
Mobile sales witnessed a 19.0% year-on-year increase to £1 billion.
Camelot revealed that they produced £37 billion in earnings, mirroring the wider and “persistent growth” of mobile commerce. The operator also declared that they successfully lured 1.1 million fresh online patrons in the preceding six months, expanding their total digital customer base to 10.7 million.
In the retail sector, overall sales decreased by 4.7% to £2.23 billion, as the physical store marketplace continues to confront difficulties. This is primarily attributed to declining foot traffic in certain sectors, and consumers choosing to shop less often but purchase more items per transaction to seek better bargains, rather than making frequent small purchases.
Despite this, Camelot asserted that retail remains the primary channel for lottery sales, with their sales network boasting over 44,500 retail partners.
It is worth noting that the distribution of funds to “worthy causes” reached £956.5 million in the initial six months of the year, establishing a record high for the first half of a financial year. This figure represents an 8.1% increase in comparison to the same period last year, signifying that the total amount raised for good causes since the lottery’s commencement in 1994 has now exceeded £47 billion.
Moreover, Camelot announced that the lottery paid out £2.3 billion in prizes to participants in the first half of the year, creating 169 new millionaires, including the three largest jackpot winners in UK history, all of whom triumphed on EuroMillions: £195 million, £184 million, and £171 million.
“I am thrilled that these record outcomes demonstrate that the lottery is returning more to good causes than ever before,” said Sir Hugh Robertson, Chairman of Camelot.
During these tough financial times, I’m pleased with the team’s excellent performance, building upon record lottery sales and charitable returns in the past few years. We continue our history of service to the British public.
Record sales have followed the announcement by Allwyn Entertainment of a contract to take over Camelot UK Lotteries, replacing the company as the manager of the National Lottery. This comes with less than a year remaining before the next license period starts. I believe the National Lottery has never been in a better state.
Under the agreement, Camelot UK’s current owner, the Ontario Teachers’ Pension Plan Board (OTPP), will become a fully-owned subsidiary of Allwyn.
The financial details of the deal have not been revealed, but a report in January by Sky News, when discussions were confirmed, stated the acquisition could be worth up to £1 billion.
The takeover is expected to be finished in the first three months of 2023, subject to regulatory approval, including final approval from the UK Gambling Commission.
Allwyn is expected to take over the UK National Lottery in February 2024, with the third license ending on January 31 of that year. Allwyn was officially given the fourth UK National Lottery license in September, ending Camelot’s 28-year reign as operator.