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STATES OF JERSEY
CHANNEL ISLANDS LOTTERY DISTRIBUTION OF PROCEEDS
Lodged au Greffe on 2nd March 2023
by the Minister for Economic Development, Tourism, Sport and Culture Earliest date for debate: 18th April 2023
STATES GREFFE
2023 P.10 (re-issue)
PROPOSITION
THE STATES are asked to decide whether they are of opinion −
to agree, in accordance with the provisions of Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975, to allocate £633,458 to the Jersey Community Foundation and the Association of Jersey Charities, divided equally between them, for onward distribution in support of the Island community; with the proceeds allocated to the Association of Jersey Charities to be distributed solely to registered charities, and with the allocation to the Jersey Community Foundation to 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.
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 2022 were £633,458 which is the amount available for distribution in the island.
The amount available for distribution from 2022 is lower than in 2021. Sales of the Christmas Lottery tickets, which generates a large proportion of the funds available for distribution, were significantly lower than previous years. Moreover, costs relating to the production of the games are incurred at the time of issue by the Company producing the game. 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. Because these costs do not have a direct correlation with sales in any one year, the amount available for distribution will vary accordingly.
It is the Minister’s recommendation to the States that the total £633,458 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 29th April 2022 the States Assembly approved P.68/2022, which set out the distribution of the 2021 lottery profits in accordance with the provisions of Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975.
A total of £977,709 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 2022 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 2021 lottery profits, it is proposed to allocate the 2022 proceeds on the following basis:
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P.10/2023 (re-issue)
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 £316,729 for onward distribution.
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.
Financial and manpower implications
Subject to States approval, the Jersey proceeds from the Channel Islands Lottery totalling £633,458 will be transferred, as stated and as soon as is reasonably practicable, to the Jersey Community Foundation Limited (£316,729) and the Association of Jersey Charities (£316,729).
There are no additional financial or manpower implications for the States arising from this proposition.
Re-issue Note
This proposition has been re-issued due to a formatting error in the proposition text.