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Channel Islands Lottery: Allocation of 2021 proceeds

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STATES OF JERSEY

CHANNEL ISLANDS LOTTERY: ALLOCATION OF 2021 PROCEEDS

Lodged au Greffe on 10th March 2022

by the Minister for Economic Development, Tourism, Sport and Culture Earliest date for debate: 25th April 2022

STATES GREFFE

2022  P.68

PROPOSITION

THE STATES are asked to decide whether they are of opinion

  1. to agree, in accordance with the provisions of Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975, to allocate £977,709 to the Jersey Community Foundation and the Association of Jersey Charities, divided equally between them, for onward distribution in support of the Island community.
  2. to agree that the proceeds allocated to the Association of Jersey Charities should be distributed solely to registered charities, and that the allocation to  the  Jersey  Community  Foundation  should  be  distributed  on  the following basis –
  1. 40% of the allocation to arts, culture and heritage;
  2. 40% of the allocation to sports and active lifestyle; and
  3. 20% of the allocation to applied science or applied research in the fields  of engineering,  biology,  ecology,  physics,  chemistry  or mathematics, provided that the funds are either to be used locally or for the direct benefit of Jersey, including any education from which local residents may benefit.

MINISTER FOR ECONOMIC DEVELOPMENT, TOURISM, SPORT AND CULTURE

REPORT

The Gambling (Channel Islands Lottery) (Jersey) Regulations 1975 stipulate that the proceeds from sales of all Channel Islands Lottery tickets are to be applied “in such manner and for such purposes of public benefit as the States shall from time to time by Act direct”.

The net proceeds from Jersey sales of lottery tickets in 2021 were £977,709 and it is the Minister’s recommendation that the full amount of these funds are divided equally and allocated to the Jersey Community Foundation and the Association of Jersey Charities for distribution in Jersey in support of the Island community.

Background

On  20th  July  2021  the  States  Assembly  approved  P.53/2021,  which  set  out  the distribution of the 2019 lottery profits in accordance with the provisions of Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975.

From the 2020 lottery a total of £1,523,936 was allocated to the Jersey Community Foundation and the Association of Jersey Charities, divided equally between them, for onward distribution in support of the island’s community.

It was agreed that the proceeds allocated to the Association of Jersey Charities should be  distributed  solely  to  registered  charities,  and  that  the  allocation  to  the  Jersey Community Foundation should be distributed on the following basis: 40% of the allocation to arts, culture and heritage; 40% of the allocation to sports and active lifestyle; and 20% of the allocation to applied science or applied research in the fields of engineering, biology, ecology, physics, chemistry or mathematics, provided that the funds are either to be used locally or for the direct benefit of Jersey, including any education from which local residents may benefit.

The proposal

Distribution of the Jersey portion of the 2021 CI Lottery proceeds will help to support many organisations across the community. Funding will be distributed to multiple organisations across a range of sectors.

As for the 2020 lottery profits, it is proposed to allocate the 2021 proceeds on the following basis:

50% via the Association of Jersey Charities to registered charities and to allow the AJC to use lottery proceeds for their charitable work;

50% via the Jersey Community Foundation, sub-divided as follows:

40% to arts, culture and heritage

40% to sport and active lifestyle

20% to science-based education and research projects

The Jersey Community Foundation and the Association of Jersey Charities will each receive £488,854 for onward distribution.

Page - 3

P.68/2022

Existing Service Level Agreements (SLAs) will be extended to cover the allocations by the two organisations and ensure that the proceeds benefit the widest range of good causes across the community in Jersey. The SLAs will also provide for outcomes-based reporting to be a requirement of lottery support. In addition, the SLAs will ensure that both  organisations  adhere  to  the  ‘additionality’  principle  when  allocating  Lottery proceeds. This is to ensure that lottery funding adds value and is not a substitute for Government expenditure, although it can complement Government funding.

It should be noted that the difference in proceeds between the 2020 and 2021 lotteries is due to additional production costs that were incurred in 2021. The incidence of these costs does not have a regular pattern and is dependent on the timing of the introduction of new games, which itself will be determined by sales patterns of existing games. The variation in costs from year to year means the amount available for distribution will vary accordingly.

Financial and manpower implications

Subject to States approval, the Jersey proceeds from the Channel Islands Lottery totalling £977,709 will be transferred, as stated and as soon as is reasonably practicable, to the Jersey Community Foundation Limited (£488,854) and the Association of Jersey Charities (£488,854).

There are no additional financial or manpower implications for the States arising from this proposition.