STATES OF JERSEY
PUBLIC LOTTERIES: REPORT FOR 2010
Presented to the States on 15th March 2011 by the Minister for Economic Development
STATES GREFFE
REPORT
Introduction
The Minister for Economic Development, in accordance with the provisions of Regulation 4(4) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975, is pleased to submit to the States a report of the Public Lotteries promoted from 1st January 2010 up to and including the Draw of 16th December 2010, together with an income and expenditure account and balance sheet.
Overview of the Channel Islands Lottery
Policy for the Lottery in 2010 was decided by the Assistant Minister for Economic Development in Jersey, Connétable L. Norman and the Culture and Leisure Member in Guernsey, Deputy F. Quin.
Public Lotteries Board
The Public Lotteries Board is constituted in accordance with Regulation 3 of the Channel Islands Lottery (Jersey) Regulations 1975, as amended, for the purpose of advising the Minister on general matters connected with the Lotteries and for conducting the Draw held in Jersey. Its Members in 2010 were –
Mr. I.T. Barnes (Chairman)
Mr. P.S. Cruickshank
Mr. D.A. Wallis
Mr. G.J. Roscouet
Ms M. Horton
Mr. A.J. Arnold
Mr A. Garnier
Dr. J. Lane (Secretary)
The Policy of the Minister for Economic Development
In keeping with recent practice, The Minister brought a Report and Proposition to the States in 2009, asking for approval that the total Jersey portion of the profits of the Channel Islands Lottery for 2009 and 2010 should be paid to the Association of Jersey Charities for the benefit of the community and the charitable needs of the Island. The Proposition also had States approval to set aside as a reserve, 10% of the Jersey surplus for 2009 and 2010.
The remaining 90% profit, according to the provisions of Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975 would be applied in such a manner and for such purposes of public benefit as the States shall from time to time by Act direct. It was the Minister’s recommendation to the States that these funds be granted to the Association of Jersey Charities.
The proposed transfer of 10% of the Jersey profits to the Accumulated Fund is to maintain a contingency for the Association of Jersey Charities should sales of the Channel Islands Lottery decline.
The grant due to be paid to the Association of Jersey Charities for the year is £423,699, an increase of £117,908 on 2009.
Having undertaken a public consultation on the future of the lottery, it is clear that there is a strong belief that the Islands should continue their own public lottery until there was a clear indication from both the States and the United Kingdom parliament that extension of the UK National Lottery was a realistic proposal.
To that end the strategy in 2010 was to –
- continue the ‘Two Super Scratch Games’ from January 2010, until the Christmas Bumper Draw in December 2010;
- ensure that any future modernisation of the Island’s gambling legislation should take account of the needs of charitable and other good causes.
During 2010 The Channel Islands Lottery went through an internal audit review which identified a number of issues, one of which was that the lottery had not been subjected to a formal tender process for some considerable time. This was duly undertaken and is in the process of being evaluated, with the outcome being determined during 2011.
Main Agents
The Minister maintained two appointed Main Agents to act on his behalf in distributing tickets in the Island.
The Main Agents were –
Mrs S. Le Brocq
Mr. and Mrs. M. Vowden
The two Main Agents purchased tickets at a discount of 13% for all the Games including the Christmas Draw.
All agents, including sub-agents, were offered an additional commission equal to 1% of any winning ticket sold by them of a value of £750 or more. The agents, however, had to register and purchase a special stamp number to stamp the reverse side of all tickets sold by them, in order to receive the ex-gratia payment.
The Minister records his appreciation to the Main Agents for their hard work and enthusiasm during the year.
The Lottery Game
The prize structures for the games introduced in January 2010 were –
Super Scratch Game 3
Prize structure per 200,000 tickets –
2 Prizes of £20,000 = £40,000
10 Prizes of £500 = £5,000
50 Prizes of £100 = £5,000
200 Prizes of £25 = £5,000
500 Prizes of £10 = £5,000
2,000 Prizes of £5 = £10,000
5,000 Prizes of £2 = £10,000
40,000 Free Tickets = £40,000
Total Prizes £120,000 = 60% return
Win ratio = 1:4.19
Sales for these games were very successful throughout the year, selling out at a rate of approximately one game every two months. Two different design games were on sale at the same time with the same prize structure for each game.
The Christmas Charity Draw
The planning and promotion of the Christmas Charity Draw remains the most important of the year and continues to draw significant public interest and support. In order to maintain this, both the Assistant Minister in Jersey and the Culture and Leisure Member in Guernsey were strongly of the opinion that the First Prize had to be seen to be rising steadily and it was agreed that the minimum First Prize would start at £300,000 as in 2009.
2,300,000 tickets were printed for this draw, 300,000 more than in 2009, when tickets were available up until the day before the Draw. Demand for tickets was unprecedented with a sell-out approximately one week before the Draw.
The Minister is delighted to report that all tickets were sold from a Jersey issue of 1,420,000, representing an increase of 180,000 (14.5%) on Jersey sales over the previous year.
Guernsey sold 880,000 tickets, representing an increase of 120,000 (15.8%) on their sales over the previous year.
The Channel Islands Lottery achieved a top prize of £750,000, exceeding the £651,000 achieved the previous year.
Finally special mention must be made of the vital part played by the Islands’ media for broadcasting and printing the daily press releases, which played an invaluable part in the successful promotion of the Draw.
The Lottery Show
The only Lottery Draw to be broadcast by Channel Television was the Christmas Charity Bumper Draw. The appreciation of the Minister goes to Mrs. Karen Rankine, Managing Director (Broadcast) and the staff at Channel Television for their continued support.
Marketing and Promotion
Marketing for the Lottery was undertaken by the Departments’ Officers in both Islands. The result was an imaginative and colourful campaign transmitted through poster, press and television that provided a very positive message.
The Year’s Ticket Sales
Ticket sales for the year (inclusive of the Christmas Draw) totalled 3,760,400 with 2,240,000 being sold in Jersey and 1,520,400 in Guernsey[1]. This showed a combined sales increase of 5.9% with Jersey sales up 6.5% and Guernsey 5.9%.
There were 10 scratch card games promoted throughout the year. 1,460,400 were sold in total (820,000 tickets in Jersey and 640,400 in Guernsey). Jersey sales were down 5.3% and Guernsey sales down 6.7%.
The Lottery Website at www.gov.je
Once again the Lottery results for the Christmas Draw were made available through the States of Jersey Website.
The Association of Jersey Charities
Founded in 1971, the Association of Jersey Charities now represents approximately 248 Jersey charities. The Minister continued to support their efforts for local charitable causes and recognised the importance of Channel Islands Lottery profits as the mainstay of the Association’s funding. The provision of the States grant is governed through a Service Level Agreement.
Grant applications from members up to a maximum of £20,000 are considered by the Executive Committee at their quarterly meetings. From September 2003 the maximum grant available was £20,000 in any two consecutive years but since 30th September 2008 this was changed to £20,000 in any one year.
The relationship whereby the Minister is able to provide funding to the Association, who are then able to assist its membership, works well. The grants approved in 2010 by the Association of Jersey Charities are listed below and illustrate the very real benefits accrued by Lottery profits for local good causes.
List of Applications Approved in 2010 (from the 2009 Grant)
Caesarea Association | Repair & redecoration of fire escape | £5,000.00 |
George V Cottage Homes Residents Assocn. | Travel costs | £600.00 |
Arts in Health Care Trust | Running costs | £12,000.00 |
FNHC | Refurbishment of satellite base | £20,000.00 |
Jersey Youth Trust | Part salary of senior youth worker | £20,000.00 |
Trinity Youth Centre Trust | Redecoration of entrance hall, curtains Main Hall | £15,961.00 |
Durrell | Refurbishment of playground | £20,000.00 |
Music in Action | Performers, administration assistant, cello | £19,300.00 |
Silver Star Community Playgroup | Short fall in running costs | £4,952.00 |
Silkworth Lodge | Purchase & installation of IT system | £11,815.00 |
Centre Point Trust | Lunches & snacks for one year | £20,000.00 |
Inclusion Project | Personal development programmes | £20,000.00 |
Relate Jersey | Counsellor training | £20,000.00 |
Art in the Frame Foundation | Children’s & Mencap workshops | £4,000.00 |
Jersey Scout Association | 18 scouts to World Jamboree | £5,500.00 |
Victim Support (Witness Service) | Running Costs | £20,000.00 |
ACET Jersey | Part HIV / AIDS Educator salary | £20,000.00 |
Jersey Child Care Trust | Assisted Nursery Places Project | £20,000.00 |
Jersey Catholic Pastoral Service | Photocopier | £2,189.00 |
Grace Trust | Part manager’s salary | £20,000.00 |
Weston Health Care Foundation | Refurbishment of new detox centre | £16,061.00 |
St. John Ambulance | Replace roof | £20,000.00 |
St. John Ambulance | Balance of roof, garage refurbishment & storage | £14,000.00 |
Le Squez Youth Club | Assistant’s salary | £20,000.00 |
Silkworth Lodge | Part counsellor’s salary | £16,061.00 |
Community Charitable Trust | Various office items | £10,974.00 |
Roseneath Trust | Continuation refurbishment of Centre | £17,442.46 |
| Total | £395,855.46 |
States Treasury Recharges
The Department has a Service Level Agreement with the Shared Services Division of Treasury and Resources for financial, administrative and audit support with the CI Lottery.
This includes services such as preparing accounts on behalf of both Islands, reconciling winning tickets, paying commissions, auditing accounts and being present at the Christmas Lottery Draw and for which the Treasury charges the Department a fee of £21,002.
The Board would like to thank the relevant staff of the Shared Services Division of Treasury and Resources.
The final accounts for the C.I. Lottery (unaudited) up to December 2010 are noted overleaf.
Channel Islands Lottery (Jersey) Fund
Fund/Reserve The net asset value increased by 9.8% (£47k) in 2010
Highlights: Jersey ticket sales increased by 5%
Purpose of Fund
The Channel Islands Lottery is administered and governed by the Public Lotteries Board, which is constituted in accordance with the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975.
In 2009 a decision was made by the States to increase the grant to 90% of the total profits for the benefit of the community and the charitable needs of the Island. The Association has now indicated that a sufficient buffer has built up and that, as a consequence of the global economic downturn, it would wish to receive its full share of grant from the 2011/12 allocation.
Key Financial Results of the Operating Cost Statement
Sales of Tickets
Ticket sales of £3,128,240, an increase of £148,027 (4.96%) on 2009. Guernsey’s contribution to the prize fund increased by 5% in 2010 due to increased ticket sales. Sales of tickets in Jersey also increased by 5%.
Other Revenue
Other revenue of £341, a decrease of £199 (36.85%) on 2009.
Supplies and Services
Supplies and Services of £476,913, a decrease of £3,491 (0.72%) on 2009.
Grants and Subsidy Payments
Grant due to be paid to the Association of Jersey Charities of £423,699, an increase of £117,908 (38.55%) on 2009.
Channel Islands Lottery (Jersey) Fund
Key Results
Key Variances from 2009 £’000 2009 NAV 480 Funds due to Guernsey 40 Balance due from CF 142 Funds owed to Charities (118) Uncollected prizes 63 Funds owed by agents (80) 2010 NAV 527 | The Net Asset Value increased from £480k to £527k during 2010, an increase of £47k (9.8%) The States increased the grant to the Association of Jersey Charities in 2009 for both 2009 and 2010 from 80% to 90% of the total profits with the remaining 10% being retained within the Fund. The net asset value of the Fund increased by 9.8% (£47k) due to increased ticket sales during 2010. |
Key Variances from 2009 £’000 2009 NRI 34 Guernsey’s contribution 44 Jersey ticket sales 104 Interest received (11) Grant to Charities (118) Other Variances (6) 2010 NRI 47 | Performance compared to 2009 Jersey ticket sales for the Christmas draw increased by 15% compared to 2009. Guernsey’s contribution to the prize fund also increased compared to 2009 due to increased ticket sales. Guernsey Contribution to Prize Fund £44k (5%) more than 2009 Guernsey’s contribution to the prize fund increased by 5% in 2010 due to increased ticket sales. Sales of tickets in Jersey £104k (5%) more than 2009 Sales of tickets in Jersey also increased by 5%. Loan Bank and Notional Interest £11k (60%) less than 2009 The Fund received £11k less interest during the year due to low interest rates. Grants and Subsidies Payments £118k (38.6%) more than 2009 The grant to the Association of Jersey Charities increased in 2010 due to Increased ticket sales. |
gov.je