Agenda item

The Group Accountant provided the Panel with information on how a local lottery scheme could operate in West Norfolk.  A copy of his presentation is attached.  He provided detail on how the scheme could work and that it could cost £1 a ticket and people could enter online.  The £1 ticket price would be distributed as set out in the report.  50% of the ticket price would go to a good cause and 10% to a general fund.   Good causes would need to apply to join the scheme and the Council would be required to determine the criteria that they would need to meet to be eligible.

The Group Accountant drew attention to the report which set out the costs to set up the lottery and how it would be managed.  He explained that it would take approximately six months’ to set up.

The Panel’s attention was drawn to the recommendations as set out in the report.

The Chairman thanked the Group Accountant and the Executive Director for the information and invited questions and comments from the Panel, as summarised below.

The Leader of the Council, Councillor Long informed the Panel that he had brought the proposals forward, following conversations with other Local Authorities.  He reminded those present that finances were constrained and in the future it may be harder to support good causes through the Council’s finances.  He felt that the local lottery proposals would counteract the reductions in the Council’s ability to help.  He informed those present that King’s Lynn previously had a local lottery, but this had ended when the National Lottery was introduced.  He explained that not all small organisations would be able to get National Lottery funding as it was a very complex process.  A local lottery could make funding easier to access for smaller organisations.  The Leader of the Council accepted that some people did not agree with gambling, and if they wanted to support a local charity or organisation they could do so independently.

The Leader of the Council stated that he had met with lots of charities and local organisations and many of them would be in favour of the additional funding that the local lottery could potentially provide.  He informed the Panel that the proposals for the local lottery scheme would be presented to Cabinet for consideration.

In response to a question from Councillor Pope, the Group Accountant agreed to check how many big winners there had been in other Local Authority areas.  Councillor Pope commented that the scheme would be good if local organisations would benefit and they could promote the lottery and invite people to support their charity or organisation.  It was confirmed that the Council would determine the criteria for which organisations and charities would be eligible.

Councillor Smith asked for clarification on the breakeven cost and what safeguards would be in place to protect children.  The Group Accountant explained that there would be a cost to the Council to set up the website and then the ticket price would go towards the prize fund, the charities and ongoing costs.  The Council would also be required to obtain the necessary licences to operate.  He explained that the lottery would be accessed online and a credit or debit card would be required.

Councillor Squire informed those present that she had spoken to colleagues in Portsmouth, which had a local lottery scheme.  She had received positive feedback and explained that the individual charities promoted the lottery.  She felt that the scheme was a good way for individuals to support their chosen charity and was better than using council tax payer’s money for financial assistance schemes.

Councillor Westrop suggested that investigations take place on other service providers of local lottery schemes as she was aware of a local lottery scheme where 80% of the ticket price went to charity.  She also hoped that the local lottery scheme would not preclude smaller organisations that did not have the time or capacity to promote the scheme.  The Group Accountant explained that organisations could just submit a photo and paragraph of text to include on the website.  Councillor Westrop referred to paragraph 3.3 of the report and asked that local branches of national organisations and charities be eligible to apply.

In response to a question from Councillor Moriarty, the Group Accountant explained that the Council could purchase a template website from the lottery management company.  It was explained that discussions had taken place with some of the other Local Authorities who ran local lotteries and their feedback on the company used had been positive.  At this stage information had not been sought on the Directors of the Company or their track record, but due diligence would be carried out at the required time.  The Executive Director explained that the proposals had been brought to the Panel at an early stage to seek their views on the scheme before the detailed background work was carried out.  If the Panel were broadly supportive of the idea, more information could be presented in the future for consideration.

In response to a question from the Vice Chairman, it was confirmed that the lottery was web based and there was no limit on the amount of charities which could join the scheme and benefit from the additional funding, as long as they met the criteria.

Councillor Fraser supported the proposals, but asked the Council to be mindful of the other local charities who already ran local lottery schemes.

Councillor Tyler commented that he was in favour of the principle of the scheme and he felt that there would be interest from local organisations and charities.  He hoped that the lottery would be made accessible and commented that not all people had internet access and would there be other ways to enter such as in shops or scratch cards.  The Executive Director explained that there would be administration costs involved to access the lottery in other ways, and this could be investigated by the Lottery Manager once appointed.

Councillor Moriarty referred to the recommendations as set out within the report and commented that these needed to be looked at.  He felt that the principle was fine, but more information would need to be brought back to the Panel on the detail.

The Chief Executive explained that the purpose of the report was to get Councillors views on the principle of the scheme.  If Members were broadly acceptable of the proposals, due diligence would be carried out and further information presented to the Panel in the future.

Councillor McGuinness commented that market testing would be required and investigations into other service providers to ensure that the Council and the charities involved would get the best deal possible.  Councillor McGuinness raised concern that he did not want the scheme to replace the financial assistance scheme.

The Leader of the Council explained that it was not the intention to end the financial assistance scheme, however, consideration needed to be given to diminishing budgets.  He explained that the lottery provided an additional opportunity for local organisations and charities to fundraise.

Councillor Bubb asked for information on how much it would cost for the Council to administer the lottery themselves.  The Group Accountant explained that he was aware of another Local Authority who had set up a lottery independently and it had cost over £80,000.

In response to a question regarding insurance backing and the prize fund, it was confirmed that 20% of the ticket price went to the prize fund and if prizes were not won, they would build up in the prize fund.  The Insurance Premium was included in the 17% which went to the Management Company.

The Panel discussed the criteria for the charities and it was suggested that this be brought back to the Panel at a future meeting for further consideration.  Councillor Westrop explained that consideration would need to be given to the type of charities which would be eligible as their governance was all different.

RESOLVED: That the Environment and Community Panel request that Cabinet:

1. Consider in principle that a Local Lottery be set up, with further information to be provided to the Environment and Community Panel as appropriate.

2. Investigate options for the setting up and management of the scheme.

3. Further information on the criteria to be presented to the Panel for consideration.