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STATES OF JERSEY
PUBLIC LOTTERIES:
REPORT FOR 2017
Presented to the States on 27th March 2018
by the Minister for Economic Development, Tourism, Sport and Culture
STATES GREFFE
2018 R.34
REPORT
Introduction
The Assistant Minister for Economic Development, Tourism, Sport and Culture, 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 2017 up to 31st December 2017, including the Christmas Draw of 19th December 2017, together with an income and expenditure account and balance sheet.
Overview of the Channel Islands Lottery
Policy for the Lottery in 2017 was decided in Jersey by the Assistant Minister for Economic Development, Tourism, Sport and Culture, Deputy M.J. Norton of St. Brelade and the States' Trading Supervisory Board in Guernsey.
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 conducting any Draws held in Jersey.
The policy of the Assistant Minister for Economic Development, Tourism, Sport and Culture
The Assistant Minister will bring a Proposition to the States regarding the allocation of the Jersey portion of the profits from the Channel Islands Lottery for 2017.
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 amount available for distribution from 2017, is £1,399,097, an increase of £148,615 from 2016. This increase was driven by a number of factors, including a further reduction in administrative costs and improvements to the approach taken to estimate prize liabilities following review.
The win ratio and percentage pay-out of each game was published on each scratch-card ticket reverse, save for the Christmas Lottery Draw, which is determined by the number of tickets sold.
Total Lottery sales in 2017
| £ |
Jersey Sales | 7,949,000 |
Guernsey Sales | 10,725,000 |
Total: | 18,674,000 |
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.
2,000,000 tickets at £2 each were printed for this Draw, replicating 2016.
The Assistant Minister reports that 977,050 tickets were sold from a Jersey issue of 1,300,000.
The Channel Islands Christmas Draw achieved a top prize of £1,008,410 below the £1,120,220 achieved in 2016.
Marketing and promotion
A new logo and associated marketing and merchandising material to increase awareness of the Channel Islands Lottery continued to be rolled out during 2017. Merchandising for the Channel Islands Lottery in Jersey was undertaken by Wilkinsons C.I. Ltd.
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, the local media, and all social media channels.
The Association of Jersey Charities
Founded in 1971, the Association of Jersey Charities now represents 312 Jersey charities. The provision of the distribution of the 2016 proceeds to the Association of the Jersey Charities in 2017 was governed by a Service Level Agreement.
List of applications approved in the 4th Quarter of 2016 by the Association of Jersey Charities (omitted from previous year's Report)
Date | £ | Applicant | Reason for application |
06/12/2016 | 30,000.00 | Autism Jersey | Fundraiser's Salary |
06/12/2016 | 4,959.50 | Beach Ability | Co-ordinator's Salary |
06/12/2016 | 11,700.00 | Pain Support Jersey | 2 x admin. salaries |
06/12/2016 | 30,000.00 | Headway | Half for minibus costs; half for physio salary |
06/12/2016 | 10,000.00 | Jersey Heritage Trust | To digitise old film footage |
06/12/2016 | 15,000.00 | Gorey Youth Project | Youth Worker's Salary |
06/12/2016 | 30,000.00 | Freedom Church | Refurbishment of Centre retrospective |
06/12/2016 | – | Jersey Employment Trust | Re-use project – cancelled |
06/12/2016 | 9,749.36 | Silkworth Lodge | Refurbishment of office |
Total: 141,408.86 |
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The grants approved by the Association of Jersey Charities in 2017 are listed in the following table, and continue to illustrate the very real benefits accrued by Lottery profits for Jersey good causes.
List of applications approved in 2017 by the Association of Jersey Charities
Date | £ | Applicant | Reason for application |
07/03/2017 | 10,000.00 | Jersey Sea Cadets | To purchase an R.I.B. |
07/03/2017 | 19,500.00 | Jersey Brain Tumour Charity | Head of Patient Support salary |
07/03/2017 | 4,999.00 | Grouville School PTA | To purchase an OWL House |
07/03/2017 | 30,000.00 | Wetwheels | Running costs |
07/03/2017 | 15,000.00 | Jersey Seasearch | Educational costs |
07/03/2017 | 30,000.00 | Elim Rock Community Centre | Manager's salary |
07/03/2017 | 4,999.00 | Jersey Early Years Association | Emergency Nursery Places Fund |
07/03/2017 | 14,000.00 | Words & Numbers Matter | Teacher's salary and educational supplies |
07/03/2017 | 15,000.00 | Jersey Arts Trust | Funding teachers/equipment for Paper Cuts |
07/03/2017 | 29,709.56 | Brook in Jersey | Nurses' salaries |
05/06/2017 | 29,783.52 | Youth Arts Jersey | Assistant Youth Worker salary |
05/06/2017 | 30,000.00 | Les Amis | Towards nursing care' facilities |
05/06/2017 | 30,000.00 | Grace Trust Jersey | Towards 3 x salaries |
05/06/2017 | 1,000.00 | Triumph Over Phobia | For books |
05/06/2017 | 4,350.00 | JCRAG | Educational component of Refugee Week |
05/06/2017 | 30,000.00 | Silkworth Lodge | Exterior maintenance and roof garden |
05/06/2017 | 30,000.00 | Love Matters | Educator's Salary |
05/06/2017 | 27,810.00 | Relate Jersey | Training and supervision |
05/06/2017 | 4,142.00 | Jersey Heritage Trust | Culture Map for schools |
05/06/2017 | 9,929.95 | Jersey Heritage Trust | Replacement book scanner |
05/09/2017 | 9,948.95 | Jersey Heritage Trust | To produce a Peace Trail guide & video |
05/09/2017 | 15,368.82 | Jersey Marine Conservation | To purchase an R.I.B. |
05/09/2017 | 2,820.00 | Jersey Child Care Trust | For training |
05/09/2017 | 30,000.00 | Les Congrès | For a Jèrriais teacher's salary |
05/09/2017 | 24,900.00 | Music in Action | Development Manager's salary and educational programme |
05/09/2017 | 24,000.00 | Lymphoedema Jersey | For a therapist's salary for 2 years |
05/09/2017 | 30,000.00 | Jersey Council on Alcoholism | To refurbish West Park properties |
05/12/2017 | 49,032.00 | Family Nursing & Home Care | Various items of equipment |
05/12/2017 | 14,935.98 | Jersey Child Care Trust | Fundraiser salary |
Date | £ | Applicant | Reason for application |
05/12/2017 | 30,000.00 | Caring Cooks of Jersey | CEO salary |
05/12/2017 | 30,000.00 | Autism Jersey | Fundraiser salary |
05/12/2017 | 7,000.00 | Jersey Mencap | Second-hand van |
05/12/2017 | 22,000.00 | Every Child Our Future | Admin. salary |
05/12/2017 | 50,000.00 | Jersey Cheshire Home | Lift |
05/12/2017 | 50,000.00 | Headway Jersey | Therapist, education, website |
05/12/2017 | 20,000.00 | Les Amis | Wheelchair vehicle |
05/12/2017 | 30,000.00 | Aspire CT | Fundraiser salary |
05/12/2017 | 50,000.00 | Jersey Employment Trust | New build re-use centre |
05/12/2017 | 11,500.00 | Jersey Eisteddfod | Replacement display boards |
05/12/2017 | 30,000.00 | Normandy Rescue | Second-hand ambulance |
05/12/2017 | 25,005.00 | Street Pastors Jersey | Admin salary, admin. costs, uniform, training |
05/12/2017 | 30,000.00 | Jersey Youth Trust | Rent and utilities |
05/12/2017 | 29,753.25 | Abbeyfield Jersey Society | New kitchen |
Total: 986,487.03 |
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States of Jersey recharges
The Department for Economic Development, Tourism, Sport and Culture administer, operate and manage the Channel Islands Lottery in Jersey. For this, a nominal figure of £3,520 was recharged to the Lottery in 2017.
The Shared Services Division of Treasury and Resources provides 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 £27,300.
The Assistant Minister for Economic Development, Tourism, Sport and Culture 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 2017 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 |
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£100,000 |
0.0% increase from 2015 |
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Net Revenue Expenditure |
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£0 |
£80,172 in 2015 |
Fund Performance
- Income
Actual 2016 £14.7 million | Actual 2015 £12.9 million |
Ticket sales and Guernsey's contribution to the prize fund accounted for almost all income at £14.6 million (99.5%). The Christmas Draw and Super Red Hot 7s contributed the majority of that revenue, accounting for £8.6 million (58.8%) of sales. Other income from investment returns and time-expired prizes amounted to £0.1 million (0.5%).
Overall income from ticket sales grew by £1.8 million (14.3%) driven by a strong increase in Jersey. Sales of Super Red Hot 7s accounted for £1.5 million of that increase. Income from investments and time expired prizes was in line with 2015.
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.
£0.1m
Cash Class Assets £0.1m
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
| 2016 | 2015 |
| £'000 | £'000 |
Income (1) (1) Expenditure – – Losses on Investments – –
Total Gains recognised (1) (1)
- Expenditure
Actual 2016 £14.7 million | Actual 2015 £13.0 million |
Prize payments and commission to distributors were the principal costs in 2016. Together they accounted for expenditure of £11.8 million (80.2%) and £1.3 million (8.6%) respectively.
Overall expenditure grew by £1.7 million (13.4%) in 2016. Prize payments showed the largest absolute increase at £0.9 million (8.2%).
The amount raised for distribution to good causes increased by £0.8 million (175.4%) in 2016. This increase was driven by a number of factors, including: a reduction in administrative costs; improvements to the approach taken to estimate prize liabilities following review; and a re-negotiation of the distribution agreement, leading to an increase in the underlying profitability of the Lottery.
- Changes in Fund Net Asset Value
Fund Balance 2016 £0.1 million | Fund Balance 2015 £0.1 million |
In 2016, all proceeds from the Channel Islands Lottery will be distributed. As a result, the net asset value of the Channel Islands Lottery (Jersey) Fund remained static at £0.1 million.
Channel Islands Lottery (Jersey) Fund Net Asset Value over time
700 600 500 400 300
£'000 200 100 0
2010 2012 2014 2016
Financial Statements
Statement of Comprehensive Net Expenditure
2016 2015 Actual Actual £'000 £'000
| Revenue |
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Sales of Goods and Services (14,668) (12,833) Investment Income (11) (14) Other Income (59) (73)
Total Revenue (14,738) (12,920)
| Expenditure: Near Cash |
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Supplies and Services 1,655 1,607 Other Operating Expenditure 11,833 10,939 Grants and Subsidies Payments 1,250 454
Total Expenditure: Near Cash 14,738 13,000 Net Revenue Expenditure – 80
Total Comprehensive Expenditure – 80
Statement of Financial Position
2016 2015 2014 Actual Actual Actual £'000 £'000 £'000
| Non-Current Assets |
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Investments held at Fair Value through Profit or Loss 145 144 143 Total Non-Current Assets 145 144 143
| Current Assets |
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Non-Current Assets classified as held for sale |
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Trade and Other Receivables 1,618 1,905 1,817 Balance due from the Consolidated Fund 2,099 1,222 2,683 Total Current Assets 3,717 3,127 4,500
| Total Assets | 3,862 | 3,271 | 4,64 | 3 |
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| Current Liabilities |
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Trade and Other Payables 3,762 3,171 4,462 Total Current Liabilities 3,762 3,171 4,462
Other Financial Liabilities – – –
| Assets Less Liabilities | 100 | 100 | 18 | 0 |
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| Taxpayer's Equity |
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Accumulated Revenue Reserves 100 100 180 Total Taxpayer's Equity 100 100 180