COVID-19 Impact: Decrease in UK National Lottery Sales in Post-Pandemic Retail Climate

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In the year ending March 31, 2022, Camelot, the operator of the National Lottery, reported sales of £8.09bn, a decrease of 2.5% from the previous year’s £8.3bn. This was only the second time that sales surpassed £8bn.

Retail remains the largest sales channel for the National Lottery, accounting for nearly 60% of sales. However, retail sales declined due to challenges posed by the pandemic, including decreased footfall and shopper frequency, as well as the ongoing cost-of-living crisis. In 2021-22, in-store sales amounted to £4.67bn, down from £4.86bn in 2020-21.

Although online play saw a record number of participants in 2021-22, digital sales decreased by £93.0m to £3.42bn. This can be attributed to increased consumer choice post-lockdown and the introduction of lower online play and wallet limits for potentially at-risk players. Nevertheless, the pandemic led to a significant number of retail players migrating to digital platforms, resulting in Camelot gaining 1.8 million new player registrations, bringing the digital player base to an all-time high of 10.1m active players.

The majority of digital sales, 72%, were made through mobile devices, amounting to £2.45bn. The National Lottery’s apps experienced substantial growth, with sales reaching an all-time high of £1.69bn, reflecting an increase of £93.5m.

Camelot achieved draw-based game sales of £4.65bn, slightly lower compared to the previous year. Despite a decrease in large EuroMillions rollovers, with 15 draws having a jackpot of over £100m in 2021-22 compared to 22 in the previous year, draw-based game sales remained strong.

The decline in overall sales can be primarily attributed to a decrease in National Lottery Instants sales, down £240.0m year-on-year to £3.44bn. This can be attributed to increased competition for consumers’ attention and spending post-Covid-19 restrictions, as well as growing economic uncertainty.

During the year, National Lottery players won £4.61bn in prizes, a decrease from the record-breaking £4.85bn in 2020-21. Additionally, £1.91bn was generated for good causes, including unclaimed prizes, marking an increase of £24.3m compared to the previous year. This is the second-highest total raised for good causes in history, with the highest being achieved during the London 2012 period.

Camelot’s chief executive, Nigel Railton, emphasized the success of the National Lottery’s strategy in offering consumer choice in a safe and convenient manner. He also highlighted the company’s investment in the National Lottery brand, including campaigns celebrating players’ contributions to events like Tokyo 2020, as well as money-saving promotions for players as Covid-19 restrictions eased. The consistent generation of record returns to good causes from ticket sales is a significant accomplishment, especially in light of the current need for funding in the UK.

In March, the Gambling Commission selected Allwyn (formerly The Sazka Group) to run the Lottery from 2024, replacing Camelot, which has operated it since its inception in 1994. In response to the decision, Camelot issued a legal challenge in the High Court, expressing their belief that the Gambling Commission’s decision was flawed.

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Jamie Becker is a highly regarded writer with a fervent passion for gambling and online gaming. With over a decade of experience in the industry, Jamie has established himself as a knowledgeable and trusted authority, covering a wide range of topics from casinos and sports betting to poker strategies and the latest trends in online gambling. His writing is noted for its meticulous research, clarity, and engaging style, making complex subjects easy to understand and enjoyable for readers of all levels. Jamie’s articles provide in-depth reviews, expert tips, and up-to-date industry insights, helping gamblers make well-informed decisions and enhance their gaming experiences.
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