In April 2020, new licence conditions came into effect which banned both online and land-based gambling operators from accepting payments from credit cards (including via e-wallets) for gambling services.

The Gambling Commission has published an interim evaluation of the ban on credit card gambling which showed that the measure had been successful and that there had not been widespread displacement to other forms of credit as payment, but the Commission has committed to continue to monitor the situation.

‘Pay by Phone’ transactions are not directly covered by the ban but are limited by law to £40 per transaction and no more than £240 per month. These limits cover all services charged to telephone bills, such as music downloads. This is not a common means of spending on gambling, currently accounting for around 0.4% of annual gross gambling yield (including lotteries), and the Phone-paid Services Authority market review suggests that gambling expenditure via telphone has decreased since the credit card ban was introduced.

It is not possible to use a credit card to play the National Lottery online or via the National Lottery smartphone application.

Licence conditions for gambling operators make clear that, where businesses take deposits via an electronic wallet, they must ensure that the money was not loaded from a credit card. If they cannot verify this, they must not accept the deposit.

Shoppers can use credit cards to buy National Lottery and society lottery products in retailers, recognising the lower risk posed by lottery products relative to other gambling products – along with the controls which are already in place, such as the training provided to retailers.

There are currently no plans to change this position under the 4th National Lottery licence but, in any case, the licence increases player protection requirements.

The decision by the operator to withdraw all £10 Interactive Instant Win Games in 2020, followed research, commissioned by the Gambling Commission, which found a correlation between players of Interactive Instant Win Games at the £10 price point and some problem gambling behaviours. The research did not show causation. The precautionary actions taken in this respect are indicative of the strong player protection policies in place on the National Lottery.

'Instants games’ have been part of the National Lottery portfolio for a majority of the time since the National Lottery was launched in 1994. Scratchcards were introduced in 1995 and online Interactive Instant Win Games in 2003. A broad portfolio ensures the National Lottery continues to appeal to a wide range of people and can provide substantial contributions for good causes every week. This has helped the National Lottery contribute over £1.2 billion to the UK wide response to the Covid-19 pandemic.

All games, including instants games, are licenced by the independent regulator, the Gambling Commission. In determining whether to licence games, the Commission will consider the potential impact on players and the player protection mechanisms which are in place to protect players from harm.

Evidence from the latest (2018) Health Survey for England shows that National Lottery games were associated with the lowest rates of problem gambling of all gambling products considered. Problem gambling rates for National Lottery draw-based games were 0.9% while the figure for Scratchcards was 1.4%.

The decision by the operator to withdraw all £10 Interactive Instant Win Games in 2020, followed research, commissioned by the Gambling Commission, which found a correlation between players of Interactive Instant Win Games at the £10 price point and some problem gambling behaviours. The research did not show causation. The precautionary actions taken in this respect are indicative of the strong player protection policies in place on the National Lottery.

'Instants games’ have been part of the National Lottery portfolio for a majority of the time since the National Lottery was launched in 1994. Scratchcards were introduced in 1995 and online Interactive Instant Win Games in 2003. A broad portfolio ensures the National Lottery continues to appeal to a wide range of people and can provide substantial contributions for good causes every week. This has helped the National Lottery contribute over £1.2 billion to the UK wide response to the Covid-19 pandemic.

All games, including instants games, are licenced by the independent regulator, the Gambling Commission. In determining whether to licence games, the Commission will consider the potential impact on players and the player protection mechanisms which are in place to protect players from harm.

Evidence from the latest (2018) Health Survey for England shows that National Lottery games were associated with the lowest rates of problem gambling of all gambling products considered. Problem gambling rates for National Lottery draw-based games were 0.9% while the figure for Scratchcards was 1.4%.

DCMS does not hold this information. The amount the National Lottery operator spends on advertising is a commercial decision, subject to conditions set out in the licence which specify minimum amounts that must be spent on marketing. For the current year the figure is £72m or 1.07% sales, whichever is higher. Information for further years can be found at Schedule 10, Condition 11, Part 1 of the third licence at the following link: https://www.gamblingcommission.gov.uk/PDF/NL-licences/NL-Third-licence.pdf

We do not hold data on sales by region, and Camelot does not publish sales data by region due to commercial sensitivities.

The table below shows sales data for draw based games (DBGs) and instant win games from 2010/11 to 2019/20. Data prior to this time was not in a readily accessible format. Sales data for instant games is not separated further into scratchcards and online instant win games. This information has been collated from an analysis of Camelot UK Lotteries Limited annual accounts.

In addition, annual National Lottery sales from 1994/1995 to 2019/2020 are shown below:

*As the Lottery began in November 1994, data from 1994/1995 is only for a partial year.

The total prize payout by game type and region is not collated.

The total amount that has been paid out in prizes since 2010 is £38,447.5 million and the list below shows how this is broken down each year during that period. This information has been collated from an analysis of Camelot UK Lotteries Limited annual accounts, which are publicly available:

• 2019/20 - £4,505.0 million

• 2018/19 - £4,128.5 million

• 2017/18 - £3,928.4 million

• 2016/17 - £3,943.2 million

• 2015/16 - £4,198.9 million

• 2014/15 - £4,043.0 million

• 2013/14 - £3,636.6 million

• 2012/13 - £3,697.6 million

• 2011/12 - £3,388.6 million

• 2010/11 - £2,977.7 million

Information on National Lottery income derived from players aged 16 and 17 is provided in the Consultation document dated 16 July 2019 on the minimum age for playing National Lottery games.

Sales revenue derived from players aged 16 and 17 is estimated due to the complexities involved in collating data from retail sales.

Total estimated sales revenue from 16 and 17 year olds in 2017/18 was £47m of which 32% was for draw-based games, 68% for scratchards and less than 1% for online instant win games (inclusive of online scratchcards).

This below data is from page 24 of the consultation document.

Figures rounded to the nearest £0.1m

* Over 99% of draw-based game sales to 16 and 17 year olds would have taken place in retail.

There are no statutory price or volume limits on the online purchase of lottery products.

The National Lottery operator has voluntarily set limits on both draw-based and instant-win games for players using its online services. It has set a spend limit of £750 per week and an account deposit limit of £350 per week. An account can play up to 75 instant win games per day. Players are also able to set personal, tighter limits if they so wish.

The People’s Postcode Lottery does not sell instant win games. It voluntarily limits on the online purchase of Lottery tickets to three entries per month, totaling £30.

The Health Lottery’s instant win games have a spend limit of £500 per day. Their draw-based game has a limit of £80 per person for any single lottery. Their QuickWin online game has a limit of £400 per week with a day cap of £75. All their online games have a deposit limit of £500 per day, and a restriction on deposits where the account balance exceeds £2000.

The Government does not have any plans to impose a maximum purchase price for scratchcards.

The 2016 Health Survey found that lottery products are low risk, with scratchcards having a problem gambling rate of 1.8%.

The Secretary of State’s directions to the Gambling Commission state that National Lottery games should have sufficient controls to prevent excessive play. They also require the Commission to ensure that the price of games, in the opinion of the Commission, are not unreasonably high.

The National Lottery’s player protection policies can be found in the Consumer Protection Strategy. Some society lottery operators also offer scratchcards, either physically through retailers or online. Society lottery operators are required to have and put into effect policies and procedures to promote socially responsible gambling.

The Gambling Commission’s recent findings highlight one of the key differences between the National Lottery and society lotteries with the National Lottery characterised by high life-changing prizes and society lotteries characterised by smaller prizes and linked to a dedicated charity or good cause such as a local hospice or air ambulance. We are currently consulting on potential changes to society lottery sales and prize limits and will consider the Gambling Commission’s findings as part of our response. In addition, we are working with National Lottery good cause distributors and Camelot to increase players’ understanding of the good causes that benefit from the National Lottery.

When the conclusions of the Government’s Gambling Review were announced in May 2018, the Government said it would consider whether 16 remained an appropriate age limit to play all National Lottery products, including scratchcards, as part of work on the next licence competition. The evidence in this area is currently being reviewed and analysed, including the number of young people who play National Lottery games and whether participation leads to problem gambling behaviours in later life.

When the conclusions of the Government’s Gambling Review were announced in May 2018, the Government said it would consider whether 16 remained an appropriate age limit to play all National Lottery products, including scratchcards, as part of work on the next licence competition. The evidence in this area is currently being reviewed and analysed, including the number of young people who play National Lottery games and whether participation leads to problem gambling behaviours in later life.

The legal age for playing National Lottery scratchcards is 16. The Gambling Commission’s Young People & Gambling 2018 report surveyed 2,865 children aged 11-16 years old in schools in England, Scotland and Wales. It reported that 2% of those aged 11-15 years old (45 individuals) had spent money on scratchcards in the past 7 days. Of the 11-15 year olds who have bought National Lottery products (National Lottery tickets or scratchcards) in the past, 62% said a parent or guardian handed over the money at the till.

Data from the Health Survey for England and Scotland 2015 and Problem Gambling Survey Wales 2015 indicates that none of the 16-17 year olds surveyed who played scratchcards were classified as problem gamblers. This is from a sample of 246 16-17 year olds, of whom 53 who had bought scratchcards in the last 12 months. The Gambling Commission also carries out regular telephone surveys, which again found that there were there were no problem gamblers amongst 16-17 and 16-18 year old scratchcard players surveyed. However, in both age groups sample sizes were small, and findings should be treated with caution.

I am aware that my hon. Friend has considerable knowledge in this area. I am happy to look into the issue of scratchcards and come back to him.

According to the recent health survey, the only two forms of gambling in which the poorest people are more likely to participate than the richest people are bingo and scratchcards. Given that fact, can the Minister justify allowing 16-year-olds to buy scratchcards when for any other form of gambling the minimum age is 18? Will she review that urgently and ensure that buying scratchcards is something that can only be done by 18-year-olds?