The National Lottery refers to games such as Lotto, Thunderball and Euromillions as draw-based games. This means that you buy a ticket, but you don't know whether it is a winner or not until a draw has been completed.
This graph refers to the distribution for each £1 spent on draw-based games:
(total value equals 99p due to rounding)
The prizes section of the pie-chart indicates how much is won for each £1 spent on draw-based games. Almost half of each £1 - 49p - is paid out.
This is almost 20% less payout than that of a scratchcard!
Income For Good Causes
For all income generated by The National Lottery, a proportion is paid out to fund good causes. Good causes can range from small one-off projects to large national projects.
30p from every £1 spent is to fund these good causes. This is 3 times as much as scratchcard sales generate!
This extra 20p per pound is simply due to the reduced prize payout.
Camelot Retention is the money kept by The National Lottery. This is split into operating costs of running the games, and a profit.
As profit is fixed at 1% (1p per £1), the 5p is spent on running the lottery. This includes the prize of printing tickets, installing machines in shops and advertising.
Interestingly, this figure is higher (6p vs 4p) than scratchcards. Draw-based sales are currently declining year-on-year, which suggests that more money must be spent advertising the games on TV and the internet than is spent on scratchcards.
The final split of each £1 spent goes to the retailer.
Retailers end up with a commission of 3p (3%) of each pound spent.
Again, this is less than the 5p commission that retailers get from scratchcards.
Comparing how scratchcard sales differ from draw-based games vary between two main factors: the prize pot and funding for good causes.
Whilst scratchcard payouts are increased versus draw-based games, the amount that goes to good causes is dramatically reduced.
Would you rather a greater payout, or give more money to good causes?