Letter: Profits and lotteries
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Sir: Peter Kilfoyle's letter (16 February) about Richard Branson's bid returning the profit element from the National Lottery to the good causes overlooks the fundamental flaws of Oflot's decisions. There is no need for Mr Branson, or any other consortium, to make large profits. The most efficient and successful lotteries in the world pay off their start-up costs immediately, so that they need neither long-term loans from banks nor equity capital.
Profit motivation to increase sales comes when the agents receive more funds by selling more tickets. Only one other person needs such a motive - the director of operations, of whom several outstanding examples are already in this country. In Sweden, he receives pounds 75,000 a year. In Hessen, Germany, the perks which the director has received beyond his pounds 106,000 salary have caused such a scandal that his bosses have been replaced. So pounds 200,000, with a bonus for extra sales, ought to be more than sufficient for the director of operations here, by international standards.
The administration costs of the commercial lottery in Victoria, Australia, are only 4 per cent of the turnover, not the 15 per cent envisaged in Britain. Moreover, Oflot's duty under the Act to maximise the funds to the good causes cannot be achieved here while rollovers are limited to three times, or while unclaimed prizes are not returned to the prize pool.
It is high time the Government revised its plans to create the best lottery in the world in a more thoroughly informed way.
DENIS VAUGHAN
Director, Lottery Promotion
Company Limited
London, WC2
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments