According to a new report researched by Regulus Partners and commissioned by the Association of Charitable Lotteries of Europe (ACLEU), charity lotteries complement rather than compete with state lotteries.
Charity Lotteries and the European Lottery Market
“Charity Lotteries and the European Lottery Market: Impact Assessment” provides a statistical analysis of lottery statistics in lottery markets across Europe and finds that charity lotteries do not have a significant negative impact on lotteries. Our research has shown that charity lotteries help increase overall revenue from lottery-based charitable fundraisers,” said Paul Leyland of Regulus Partners. Living with a material sector of charitable lotteries; those with a limited charitable lottery sector; and those without
National Charity Lotteries. “Our analysis found no material causal relationship between the existence of not-for-profit lotteries and the performance of state lotteries. Funds raised for good causes typically outperform state lotteries in revenue growth.
ACLU President Eva Striving commented: “We are pleased that this new research report confirms our long-standing and strong belief that charity lotteries complement and do not jeopardize the revenues of state lotteries.” This report will help politicians, legislators and charities to fully appreciate the value that charity lotteries bring and to understand some of the dynamics faced by the lottery industry in general. “We also hope that it will be of interest to our colleagues in the state lottery sector and get us all thinking about how we can work together to further expand lottery-based charitable fundraising for the benefit of organizations, charities, communities and countries.” all of Europe.
Charity lotteries and gambling harm
Research shows that several factors contribute to gambling being harmful. These are The continuity of activity between the “bet” and the buzz “win or lose”. The more significant the gap, the less likely gambling is to cause problems—the ability to apply abilities to play, whether perceived or actual.
So betting on sports, or “knowing” that a particular colour or number will win, increases the likelihood of in-game damage. The motivation to play is also essential. Therefore, those who play to win money or win back their losses are more at risk than those who play for fun or raise money for a good cause. Data shows that around 14% of people play a charity lottery regularly, which is pretty evenly split between men and women (while men influence most forms of gambling). This compares to the National Lottery at 41% and race betting at 2% (much more data in Table 1 on page 6 of Responsible Gaming).
And of course, even these low numbers don’t show that lotteries cause gambling problems; instead, some people who already have gambling problems will also play lotteries. Compare this to ‘slots’ at around 14% or online slots, casinos or bingo games at 9.2% (see Table 2 of the report). Our responsible gaming report contains two recommendations. Must develop a code of best practices for all members to follow.
This could include training staff, developing systems to look for problematic activities (e.g. limiting play time) and risk mitigation for all activities. Each final code can stand alone or feed into the work of the fundraising regulator.