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STATES OF JERSEY
PUBLIC LOTTERIES: REPORT FOR 2014
Presented to the States on 16th March 2015 by the Minister for Economic Development
STATES GREFFE
2015 Price code: B R.32
REPORT
Introduction
The Minister for Economic Development, in accordance with the provisions of Regulation 4(4) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975, is pleased to submit to the States a report of the Public Lotteries promoted from 1st January 2014 up to and including the Christmas Draw of 18th December 2014, together with an income and expenditure account and balance sheet.
Overview of the Channel Islands Lottery
Policy for the Lottery in 2014 was decided in Jersey by the Minister for Economic Development, Senator A.J.H. Maclean (until October), and thereafter by the Assistant Minister for Economic Development, Deputy M.J. Norton of St. Brelade , and in Guernsey by the Culture and Leisure Board Member, Deputy F. Quin.
Public Lotteries Board
The Public Lotteries Board is constituted in accordance with Regulation 3 of the Channel Islands Lottery (Jersey) Regulations 1975, for the purpose of advising the Minister on general matters connected with the Lotteries and for conducting any
Draws held in Jersey. Given the improvements made to the Channel Islands Lottery over recent years, new terms of reference are being finalised, and a recruitment process for a new Public Lotteries Board will commence in April 2015.
The policy of the Minister for Economic Development
The Minister will bring a Proposition to the States regarding the allocation of the Jersey portion of the profits from the Channel Islands Lottery for 2014.
The profit, according to the provisions of Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975 would be applied in such a manner and for such purposes of public benefit as the States shall from time to time by Act direct.
The profit figure from 2014 is £701,802, an increase of £17,247 on 2013.
Following a tender exercise held in late 2013, Wilkinsons C.I. Limited commenced storing, distributing, merchandising, and reconciling paper lottery products on 1st January 2014.
The win ratio and percentage payout of each game was published on each scratch-card ticket reverse.
The Christmas Lottery Draw
The planning and promotion of the Christmas Lottery remains the most important of the year, drawing significant public interest and support. This interest and support has only increased after the £1 million barrier for the first prize was broken in 2013.
1,750,000 tickets at £2 each were printed for this Draw, 250,000 more than in 2013. The Minister reports that 1,130,000 tickets were sold from a Jersey issue of 1,080,000 (50,000 additional tickets were transferred from Guernsey).
Guernsey sold 612,950 paper tickets out of an allocation of 670,000.
The Channel Islands Christmas Draw achieved a top prize of £1,220,600, exceeding the £1,038,000 achieved in 2013.
Finally, special mention must be made of the part played by the Islands' media for broadcasting and publishing the regular first prize updates, which played an invaluable part in the promotion of the Draw.
Marketing and promotion
Merchandising for the Channel Islands Lottery was undertaken by Wilkinsons C.I. Ltd. in Jersey. Special efforts commenced in Jersey during 2014 to work with an expanded retail network to increase the prominence of lottery products at point of sale.
Ticket sales in 2014
Ticket sales for the year (inclusive of the Christmas Draw) totalled £13,695,200, with £5,682,700 being spent on tickets in Jersey and £8,012,500 in Guernsey.
www.gov.je and social media
As previously, the winning numbers for the Christmas Draw were made available through the States of Jersey website, www.gov.je and all social media channels.
The Association of Jersey Charities
Founded in 1971, the Association of Jersey Charities now represents 301 Jersey charities. The Minister continues to support their efforts for local charitable causes. The provision of the States' grant is governed through a Service Level Agreement.
Grant applications from members up to a maximum of £30,000 are considered by the Executive Committee at their quarterly meetings. From 30th September 2008, the maximum grant available was £20,000 in any single financial year, but since June 2012 this has been changed to £30,000 in any one financial year.
The grants approved in 2014 by the Association of Jersey Charities are listed in the following table, and illustrate the very real benefits accrued by Lottery profits for Jersey good causes.
List of applications approved in 2014 (from the 2013 Grant)
Application from: | Reason for application: | £ |
Brighter Futures | To continue the Journey into Wellbeing' Project | 30,000.00 |
Jersey Scout Association | To send 4 Scouts to the World Jamboree in Japan | 2,000.00 |
Trinity Youth Centre Trust | Towards shortfall on refurbishment costs | 1,453.00 |
Friend of the Bridge | To cover 38 Play-scheme places | 4,490.00 |
7 Overseas Air Cadets | For a minibus with trailer | 21,269.00 |
Jersey Brain Tumour Charity | To cover a part-time administrator's salary for 3 years | 30,000.00 |
Jersey Hospice Care | For equipment for the physiotherapy gym | 30,000.00 |
Le Congres de Parlers Normand St. Jerriais | Towards an MSc | 1,350.00 |
JCG PTA | For a minibus | 24,925.00 |
Jersey Scout Association | To re-cover the floor of the 9th Scout Hut | 2,000.00 |
Jersey Heritage Trust | To complete the scanning of WW1 documents | 1,914.05 |
St. Peter 's Youth Club | Towards sessional youth worker salaries | 17,342.00 |
Grand Vaux School PTA | To refurbish the library | 4,209.26 |
Jersey Cancer Trust | For 10 chemotherapy couches | 29,815.00 |
St. John Ambulance | For a replacement support vehicle | 28,000.00 |
Triumph Over Phobia | To send 2 people to a conference | 1,679.00 |
Caring Hands | Towards 2 salaries | 30,000.00 |
La Moye School PTA | To refurbish the kitchen | 10,191.29 |
Words & Numbers Matter | Admin salary and Assessor salary for one year | 9,959.80 |
Jersey Arts Centre Trust | Theatre in Education Project | 18,000.00 |
Jersey Citizen's Advice Bureau | Debt Adviser's salary for 2 years | 30,000.00 |
Little Sisters of the Poor | To continue major refurbishment | 30,000.00 |
George V Residents' Association | For coach trips | 1,000.00 |
Jersey Scout Association | To send a further 5 Scouts to the World Jamboree | 8,000.00 |
Friends of St. Thomas Church | To cover the shortfall on the cost of refurbishing the hall toilets | 1,183.00 |
ACET Jersey | To support the HIV Education in Schools project | 30,000.00 |
Application from: | Reason for application: | £ | |
Friends of Mont à l'Abbé School | To make the playground more wheelchair- friendly | 22,800.00 | |
Jersey Council on Alcoholism | To refurbish 26 & 28 West Park Avenue | 27,966.00 | |
Durrell Wildlife Conservation Trust | To refurbish the entrance to Café Dodo | 12,969.00 | |
NCT Jersey | To train an antenatal teacher | 17,260.00 | |
Jersey Heritage Trust | To purchase 8 Edmund Blampied Sketchbooks | 20,000.00 | |
Maison des Landes | For roof repairs | 30,000.00 | |
Arts in Health Care Trust | Towards 3 concert tours | 9,000.00 | |
Macmillan Cancer Support | Towards the refurbishment of the centre | 20,000.00 | |
Music in Action Limited | For educational masterclasses, Admin Assistant | 19,525.00 | |
Beach Ability | To employ a full-time seasonal co-ordinator | 4,494.00 | |
No. 7 Overseas Air Squadron | For PCs and laptops | 5,000.00 | |
Durrell Wildlife Conservation Trust | To resurface the footpaths | 17,031.00 | |
Freedom for Life Ministries | To install a lift | 19,484.00 | |
Community Savings Ltd. | Towards part-time salaries | 30,000.00 | |
Silkworth Lodge | To upgrade kitchen and replace carpets | 9,564.00 | |
663,873.40 | |||
States of Jersey recharges
The Economic Development Department administer, operate and manage the Channel Islands Lottery in Jersey. For this, the figure of £20,864 was recharged to the Lottery in 2014.
The Shared Services Division of Treasury and Resources provide vital support for the Channel Islands Lottery. This includes services such as preparing accounts on behalf of both Islands, reconciling winning tickets, and auditing accounts, for which the Treasury charged the Lottery a fee of £25,883.
The Minister for Economic Development would like to extend his thanks to the relevant staff of the Shared Services Division of Treasury and Resources and the Reception of Cyril Le Marquand House for their dedication in support of the Channel Islands Lottery.
The final accounts for the C.I. Lottery (unaudited) up to December 2014 are noted overleaf.
Channel Islands Lottery (Jersey) Fund
The purpose of the Channel Islands Lottery (Jersey) Fund is to promote and conduct public lotteries in aid of good causes.
Summary Snapshot
Fund Position: | £180,172 (69.5% decrease from 2013) |
Net Revenue Expenditure: | £410,120 |
- Fund Performance
- Income
Actual 2013 Actual 2014 £8.2 million £11.3 million
Ticket sales accounted for the overwhelming majority of income in 2014, at £11.1 million (98.2%). The Christmas Draw and Super Red Hot 7s were the most popular games, jointly contributing £5.9 million of sales. Other income from investment returns and time expired prizes amounted to £0.2 million (1.8%).
Combined Jersey and Guernsey sales grew by £3.1 million (38.8%) in 2014. Sales of Super Red Hot 7s recorded the greatest increase, at £1.5 million, whilst the Christmas Lottery sales grew by £0.5 million. Income from investments and time-expired prizes remained at the same level as 2013.
- Performance of CIF Investments
The Channel Islands Lottery (Jersey) Fund participates in a range of CIF pools. Investments are held by the CIF, which recognises income, expenditure and gains/losses on Investments. The Fund recognises only gains or losses on the units held in the CIF.
The table below shows the share of transactions in the CIF attributable to the Fund. CIF Amounts Attributable to the Channel Islands Lottery (Jersey) Fund
| 2013 | 2014 |
| £'000 | £'000 |
|
|
|
|
|
|
Income | 5 | 1 |
Expenditure | - | - |
Gains on Investments | - | - |
|
|
|
|
|
|
Total Gains recognised | 5 1 | |
- Expenditure
Actual 2013 Actual 2014 £8.2 million £11.7 million
Prize payments and commission to distributors were the principal costs in 2014 before distributions to the Association of Jersey Charities. Together they accounted for expenditure of £9.5 million (81.2%) and £0.8 million (6.8%) respectively.
Overall expenditure grew by £3.5 million (42.7%) in 2014. Prize payments make up the majority of this increase at £2.9 million, with commission being the other significant contributor at £0.3 million.
The 2014 grant to the Association of Jersey Charities was £0.7 million, which represents an increase, compared to 2013, of 2.5%.
The 2014 grant increased by less than income because the underlying profitability of the lottery was lower in 2014 than 2013; this as a result of larger prize funds on 2014 games and higher commission costs.
A special distribution of £0.4 million was made to the Association of Jersey Charities from the net assets of the Fund. As a result, expenditure was greater than income in 2014.
- Changes in Fund Net Asset Value
Fund Balance 2013 £0.6 million | Fund Balance 2014 £0.2 million |
Over several years the Channel Islands Lottery (Jersey) Fund established a reserve to protect against the potential losses that could have been incurred through the operation of the Lottery. In 2014 a new approach to ticket sales was introduced which significantly reduced the Fund's risk exposure and permitted a reduction in the level of reserves held. As a consequence, a special distribution of £0.4 million was paid to the Association of Jersey Charities, reducing the Net Asset Value of the Fund by an identical amount.
Channel Islands Lottery (Jersey) Fund: Net Asset Value over time
Financial Statements
Statement of Comprehensive Net Expenditure1
2013 2014 Actual Actual £'000 £'000
Revenue
Sales of Goods and Services (8,020) (11,139) Investment Income (11) (11) Other Income (171) (176)
Total Revenue (8,202) (11,326) Expenditure: Near Cash
Supplies and Services 924 1,113 Other Operating Expenditure 6,586 9,508 Grants and Subsidies Payments 684 1,112 Impairments of Financial Assets 3 3
Total Expenditure: Near Cash 8,197 11,736 Net Revenue (Income)/Expenditure (5) 410
1 The C.I. Lottery Fund does not account for Guernsey's full sales revenue. Only Guernsey's
contribution to the prize fund is shown in sales income, being the amount owed by the States of Guernsey to the C.I. Lottery Fund.
Statement of financial position
2012 2013 2014 Actual Actual Actual £'000 £'000 £'000
Non-Current Assets
Investments held at Fair Value through Profit or Loss 539 142 143 Total Non-Current Assets 539 142 143 Current Assets
Trade and Other Receivables 1,490 1,117 1,816 Balance due from the Consolidated Fund 958 1,636 2,683
Total Current Assets 2,448 2,753 4,499 Total Assets 2,987 2,895 4,642 Current Liabilities
Trade and Other Payables (2,402) (2,305) (4,462) Total Current Liabilities (2,402) (2,305) (4,462) Assets Less Liabilities 585 590 180 Taxpayer's Equity
Accumulated Revenue Reserves 585 590 180 Total Taxpayer's Equity 585 590 180