National Lottery, which is a state-held national lottery in the UK, is operated by the Camelot Group. The lottery is monitored by the National Lottery Commission, and was established in the year 1994. All the prizes won are paid in full and without any tax deductions. The division of all the money spent on National Lottery is as such: 50% goes to prize fund and 28% is allotted to “good causes” which was set up by the Parliament, 12% goes to the government as duty, 5% to the retailers as commission for selling the big ticket, and the last 5% to Camelot, the lottery operator.
Money-raised to support good causes
Since its inception in 1994, National Lottery has raised a huge amount of £33 billion to support good causes in the country such as arts, heritage, and sports. It also supports causes related to the environment, health, and education. In 2012, the National lottery contributed £2.175 billion to fund the London Olympic and Paralympic Games which included £750 million from game sales. The sources of the funds raised by the National Lottery are the unclaimed lottery prizes and the interest on the fund balances held. The funds meant for the good causes are held by the NLDF that is the National Lottery Distribution Fund. Although the funds raised for Olympics were held by the NLDF it is the National Lottery Commission who makes sure the payments from the lottery operator come in on time.
The quarterly reports on the funds collected
This year in Q1, 2015-16, the total paid to NLDF amounted to £451.7 million. This was a 3% increase against the same quarter last year. However, it was 5.8% lesser than Q4, 2014-15, since that quarter received repayment of £14 million that was shelled out to support the introduction of Lotto in 2013.