Issue - meetings

The ICT Transformation Manager presented the Redditch Local Lottery report together with Mr Nigel Ashton from Aylesbury Vale District Council.  During the presentation of the report the following points were highlighted for Members’ consideration:

·                Aylesbury Vale District Council had been the first local authority to establish a local lottery scheme three years previously.

·                The lottery scheme had been very successful in Aylesbury and the officers from that authority had provided support to Redditch Borough Council in developing the business case for a Redditch local lottery scheme.

·                Under the proposed scheme anybody could buy a lottery ticket on the website.

·                Lottery tickets would cost £1 and 50 per cent of that would be contributed to supporting good causes.

·                The Council would need to spend £10,000 on set up costs and a further £2,500 per year on running costs.

·                There was the potential that the Council could secure £60,000 per annum from the scheme.

·                The odds of winning the £25,000 jackpot were one million to one.

·                All lottery funds would be managed by an external company on behalf of the Council.

·                There would be no roll over but if more than one person had the winning numbers they would all receive £25,000.

·                There was a risk that people might choose not to participate in the lottery which would impact on income.  The Council could then choose to end the service.

Following the presentation of the report Members discussed a number of points in detail:

·                The Council lottery scheme could provide consistent funding to local charities on a monthly basis.  This might help voluntary and community sector (VCS) groups to secure more sustainable funding.

·                The potential to raise £60,000 for the Council from a local lottery could have a positive impact on the Council’s finances.

·                Local lottery schemes had been delivered successfully in other parts of the country when following the model of delivery detailed in the report.

·                Concerns were raised about potential moral and ethical issues arising from the introduction of a local lottery scheme which could potentially encourage gambling.  Officers suggested that as the scheme involved payments online of small sums participants would not have the instant gratification that might come from playing on fruit machines. 

·                Members were advised that participants would be restricted to purchasing up to £5 of tickets only.

·                Concerns were raised about funds raised from gambling being used to provide financial support to public services.

·                Questions were raised about the number of people who would need to buy a ticket in order to generate £60,000 for the Council.  Officers explained that 2,046 players would need to participate per week to achieve this figure.

·                Members also asked about the amount of local market testing that had been undertaken in Redditch to test demand for the service.  Whilst there was little information available about this Members were advised that Redditch was not very different to the 57 other places in the country where a local lottery scheme had been introduced.

·                There had been no complaints in Aylesbury in the  ...  view the full minutes text for item 29