< General
i. Is the lottery state owned
The National Lottery is controlled by the National Lottery Commission,
a non-governmental body. It regulates the National Lottery, selects
the lottery operator and monitors its performance.
http://www.natlotcomm.gov.uk/AboutUs/content.asp?id=63
Two acts of parliament lay down the framework for the National
Lottery. Full transcripts of the law can be found as follows:
National Lottery Act 1993.
http://www.legislation.hmso.gov.uk/acts/acts1993/Ukpga_19930039_en_1.htm
National Lottery Act 1998.
http://www.hmso.gov.uk/acts/acts1998/19980022.htm
The Department for Culture, Media and Sport has policy responsibility
for the way National Lottery proceeds are given out.
It sponsors the National Lottery Commission and co-ordinates the
activity of the organisations which distribute money from the National
Lottery to the good causes.
http://www.culture.gov.uk/national_lottery/default.htm
There are a number of proposed changes to UK gambling law. Full
details of the proposed reforms can be seen here.
http://www.culture.gov.uk/NR/rdonlyres/eqb2teb34h5swhy6cr4w5bfftdt2ovvxfsil3f6nlmpinheyip2slzif56wj5txn3ngtgdbkee2w5zuisssuz7c7leg/gamblingreportpgs.pdf
The lottery licensing laws are also under review.
http://www.culture.gov.uk/NR/rdonlyres/ekb7g7cfqspz74gjaz7ccozi3qsscewfsce4spqmbdvol3skw4uuuh4xa2do2snx5trvnthfg4zbb3saqz5xghyrwjh/reviewlotterylicensingdocument.pdf
ii. Is the lottery operated by the state or a private company
The lottery is operated by Camelot Group Plc ? a public limited company.
Address: Camelot Group plc, Tolpits Lane, Watford, Herts, WD18 9RN, United Kingdom
Telephone: 01923 425000
http://www.camelotgroup.co.uk/index.jsp
iii. How long does the contract run for
Seven years from 27 January 2002.
http://www.natlotcomm.gov.uk/Licencing/
iv. What percentage of the takings are committed to charities and
welfare organizations
28% goes to good causes. A breakdown of how the takings are
distributed is shown at this site.
http://www.lotterygoodcauses.org.uk/about.htm
v. How are agents appointed
The number of retailers applying for a lottery terminal is roughly
three times as many as there are terminals available. The lottery
operator selects the retailers based on commercial judgements. The
operator?s knowledge of the retail market nationally and locally makes
it best placed to decide how to meet local patterns of demand.
Camelot automatically considers all applicants in an area who meet the
basic criteria when a lottery terminal becomes available in it. It has
published basic minimum criteria for selecting new retailers. The
decision is based on local shopping habits.
http://www.natlotcomm.gov.uk/ForRetailers/
The basic minimum criteria for becoming a retailer are:
Store selling space of over 750m2
Over 750 customers per day.
Opening hours between at least 9.00am to 6.00pm daily and until draw
break (currently 7.30pm) on draw days.
http://www.camelotgroup.co.uk/retailers/retail_select.jsp
A guide to Camelot?s retailer selection policy.
http://www.camelotgroup.co.uk/downloads/retailer_selection_policy2.pdf
vi. Can the agency be transferred
A new owner of a store can take over the agency.
vii. How is the agency connected to the lottery system
The agency is connected to the lottery system via a lottery terminal.
viii. What are the agents commission rate for sales of lottery
5% commission is paid on sales.
ix. What commission is paid to the agents on winnings
None.
x. Are winnings tax-free or subject to what % tax
Winnings are tax free.
xi. What is the breakdown of sales for lottery, scratch cards and other games
The sales figures database gives all sales of tickets from 1994 to 2004.
http://lottery.merseyworld.com/Sales_index.html
2. Games
i. How many different lottery games are available
There are 8 different in-store games ? Lotto, Thunderball, Lotto
Extra, HotPicks, Daily Game, Scratchcards and Millionare Maker.
http://www.national-lottery.co.uk/player/p/games/playingInStore.jsp
The lotto and Daily play can also be played online.
There are 19 different online Instant Win games.
9 Lives, Bank The Cash, Cash Machine, Gold Fever, Hit The Quackpot,
Holiday Bonanza, Hot Cards, Knight On The Tiles, Lucky Devil, Mini
Connect 4, Money Spinner, Monopoly, Pharaoh?s Treasure, Pluck A Duck,
Predict A Ball, Red Hot 7s, Safe Cracker Gold, Space Invaders and
Winning 7?s.
http://www.national-lottery.co.uk/player/gaming/showGames.do?page=0
ii. How many are daily
Daily game is played daily Monday to Friday.
iii. How many are weekly
None
iv. How many are bi-weekly
Lotto, Thunderball, Lotto Extra and Lotto HotPicks are all played on
Wednesday and Saturday.
v. Breakdown the different games (e.g. 6/49; 6/45 + extra etc.)
Lotto ? 6/49
Thunderball ? 5/35 plus 1/14
Lotto Extra - 6/49
Daily Play ? 7/27
Lotto Hot Picks ? 2,3 or 4/49
vi. What is the minimum cost per board
£1 sterling.
vii. How are the forms paid for (credit card, cash, debit order)
The method of payment depends on the in-store facilities. Cash, debit
cards, cheque or postal order are accepted in most stores. UK law does
not allow credit cards to be used for gambling however the law is
currently under review and there are plans to allow gambling with
credit cards.
Jackpot or Jail? Reform of Gambling Laws in the UK.
http://www.cr-law.co.uk/articles/viewarticle.asp?articleid=265
viii. How many boards are on a form
There are seven boards on a form.
http://lottery.merseyworld.com/Info/Playslip.html
ix. Are multiple plays available
Yes.
x. What is the maximum number of multiple plays
8 weeks in store. Up to 104 weeks with a subscription.
xi. What daily draws are available
Daily play.
http://www.national-lottery.co.uk/player/gaming/drawgame/displayDailyGamePlayslip.do
xii. What time of day is the daily draw
Approximately 8.30pm Monday to Friday.
http://www.national-lottery.co.uk/player/gaming/drawgame/displayDailyGamePlayslip.do
xiii. Are the lotteries a straight x/xx or do they have additional games
The Lotto has an additional game called lotto extra.
xiv. What are the additional/bonus games
Lotto Extra.
xv. Are the additional/bonus games for the entire card or per board
Lotto Extra is per board.
xvi. What is the additional cost of the bonus game
£1
xvii. How are prizes paid out (lump sum or ?)
The prizes are paid out in a lump sum. Prizes of up to £200 can be
claimed from a National Lottery retailer. Some post offices are able
to pay out prizes of up to £10,000. Prizes over this amount are paid
out by one of Camelot?s Regional centres.
http://www.camelotgroup.co.uk/retailers/info.jsp
How prizes are paid out for online games.
http://www.national-lottery.co.uk/player/p/games/howToClaim.jsp
xviii. Are grand prizes rollover
If the main prize is not won, the prize money is carried over to the
next draw and becomes a rollover jackpot.
xix. Are forms personalized at time of purchase
No, forms are not personalized at the time of purchase, however
Camelot recommends that players write their name and address on the
back of the ticket. In practise very few people bother to personalise
their tickets.
xx. Are prizes paid out against personalized winning forms only
No, prizes are paid out against winning tickets.
3. Subscriptions
i. Are annual subscriptions available
Subscriptions are available online and via postal subscription.
http://www.national-lottery.co.uk/player/p/subs/entry.jsp
Postal subscription.
http://www.national-lottery.co.uk/player/p/files/subscriptionsapplication.pdf
ii. Is there a surcharge for the service
No.
iii. How is the service paid for
Direct debit from a bank account, cheque or postal order.
iv. How long does it take till the service is activated
Four weeks.
v. How are the winnings paid out
Winnings up to £10,000 are paid by cheque within 7 days. For wins over
£10,000 it is necessary to make a claim at a Regional Centre.
http://www.national-lottery.co.uk/player/p/subs/furtherinfo.jsp#ch2
vi. What is the minimum draws for the service(in weeks )
The minimum number of draws is 26 and the maximum 104. It is also
possible to subscribe for 52 draws.
vii. Is the service available for all games
It is available for Lotto and Thunderball.
4. Foreign Lotteries
i. Can foreign lotteries be offered
Foreign lotteries are illegal.
ii. How is payment effected
iii. How can winning be paid out
B. Financial
1. Banks
i. Who are the major banks
Barclays
http://www.barclays.co.uk/
NatWest
http://www.natwest.com/redirect.asp
HSBC
http://www.hsbc.co.uk/
Lloyds TSB
http://www.lloydstsb.co.uk/
Royal Bank of Scotland
http://www.rbs.co.uk/
HBOS
http://www.hbosplc.com/home/home.asp
ii.
iii. How has the prime rate changed over the last 12 months
Bank of England ? changes in bank rate.
http://www.bankofengland.co.uk/mfsd/rates/baserate.pdf
iv. Do the banks offer credit facilities against credit card sales
Banks offer a range of credit facilities for businesses.
v. Do the banks offer credit facilities against post dated deposited checks
vi. What is the clearing time for checks
3 working days.
vii. Can foreign currency be used as legal tender
Foreign currency is not legal tender, however Euros are accepted by a
number of retailers especially in tourist areas.
http://www.which.net/media/pr/jun03/general/euro_switch.html
viii. Is on-line banking available
Yes.
ix. What is the procedure for returned checks, what legal claims can be made
Cheques in the UK can be guaranteed with a bank card which will stop
them bouncing. Most retailers in the UK will not accept cheques that
are not guaranteed.
If a cheque bounces the debtor must be first given a reasonable time
to respond to a payment demand. If payment is not forthcoming, claims
for up to £5,000 can be pursued in the small claims court. An informal
hearing is heard in the judges chambers with a judgement made the same
day. Court fees can also be recovered from the debtor.
http://www.small-claims.co.uk/court_procedure.htm
x. What are the restrictions on foreign currency transfers abroad
None.
xi. Can foreign companies hold bank accounts for businesses
Yes.
2. Credit Cards
i. Are credit cards a preferred form of payment
Not for lotteries. They are currently not allowed for gambling.
ii. What is the cost of a CREDIT CARD transaction
The average fee in the UK is 1.1% of the transaction value.
http://www.pwc.com/uk/eng/about/svcs/vs/pwc_preciousplastic_2003
iii. Do CREDIT CARD companies offer payment terms (12, 18 payments with interest)
Yes, monthly payments.
iv. Can CREDIT CARDS be charged by phone
Yes.
Streamline is the major provider of credit card transaction services.
They offer point of sale and telephone systems.
More information can be found at.
http://www.streamline.com/index_frame.htm
v. How is approval for a transaction achieved
By phone or by credit card terminal.
vi. Is telephone approval given for each transaction
vii. Is it possible to link directly into the CREDIT CARD companies by computer
Yes.
viii. What are the closing dates for CREDIT CARD transactions
ix. Are CREDIT CARDS deposited directly into company bank accounts
Yes
x. Can international credit cards be used as a form of payment for lottery
Currently credit cards cannot be used for gambling in the UK. There is
a proposed change in the law though.
xi. Can CREDIT CARD sales be cancelled within a limited time-frame
There can be charge backs for a number of reasons.
xii. Are electronic debit cards available
Yes.
3. Payment orders
i. Are payment orders an acceptable payment form
Direct debit from a bank account is acceptable.
ii. How is approval obtained
The customer needs to fill in their bank details giving name of
account holder, branch sort code, bank/building society account
number, name and postal address of bank and sign the form. You can see
an example of a direct debit form here.
http://www.national-lottery.co.uk/player/p/files/subscriptionsapplication.pdf
iii. How can payment orders be cancelled
The customer can notify their bank to stop payment.
iv. Can payment orders be accepted and approved on-line
Yes.
v. What interface is needed for on-line banking
The major banks provide on-line banking services.
4. Billing Software
i. What interface and protocols are needed for banks
BACSTEL-IP is a high speed online payment and collection system. It
delivers payment confirmations in 3 tyo 4 hours.
http://www.bacs.co.uk/BACSTEL-IP/downloads/bacstel_ip_brochure.pdf
ii. What interface and protocols are needed for credit card companies
See Streamline for details.
http://www.streamline.com/index_frame.htm
iii. Is it necessary to have a multi-currency facility
No.
C. Legal
1. Telemarketing & Sales
i. Is it legal to market products by telephone
National lottery products cannot be marketed by telephone. Only market
research calls can be carried out.
The Telephone Preference service allows individuals to opt-out of
receiving unsolicited sales and marketing calls. A list of individuals
who have opted out can be obtained by subscribing to the Telephone
Preference Service.
http://www.tpsonline.org.uk/tpsr/html/Whatis.asp
Regulations governing unsolicited calls.
No one can make a direct marketing call to an individual subscriber
who has either previously notified the caller that he or she does not
want to receive such calls, or who has been registered with the TPS
for twenty-eight days or more.
Furthermore, as part of all direct marketing calls, the caller must
give their name and, on request, a freephone telephone number or
address by which they can be contacted.
http://www.dti.gov.uk/industries/content/explanatory_note_on_unsolicited_direct_marketing_telephone_calls_faxes_how_to_avoid_them.html#calls
ii. Is it legal to sell by telephone and to finalize and have approved by phone
National lottery products are currently not sold over the telephone. I
have not found any legislation that bans this. It is legal for bets on
horseracing and other sporting events to be taken over the telephone.
iii. Is it legal to phone sell cross country/state
Probably ? see above.
iv. What information is needed in order to sell by credit card
Currently credit cards cannot be used for gambling. There are
proposals to change the law to allow credit cards to be used for
gambling.
Credit card transactions usually require card holders name, card
number and expiry date.
v. Is it legal to canvass potential clients by phone
Unsolicited phone calls or fax messages promoting National Lottery
products are not allowed.
A copy of the code of practice is available here.
http://www.ateonline.co.uk/default.asp?showid=11&pageid=948
vi. Is it legal to sell by web
Yes.
2. Syndicates
i. Are syndicates a legal body for lottery
The National Lottery recognises syndicates as legitimate players. It
also provides guidelines for administering a syndicate.
http://www.national-lottery.co.uk/player/p/games/syndicatesQuickTips.jsp
A written syndicate agreement is legally binding and can be used to
prove a case in court.
ii. Can syndicates operate without any binding documentation
Yes. However the Inland Revenue may charge inheritance tax on monies
distributed to other winners if there is no written agreement.
iii. Are syndicates governed by a specific law/s
No.
3. Foreign companies
i. Can foreign companies be sole owners of a company operating in the territory
Yes.
ii. Can foreign companies maintain foreign personnel
Yes.
iii. What taxes are applicable
Income tax, national insurance, corporation tax, gambling duty.
iv. What social benefits and taxes are applicable to local employees
Income tax and national insurance are collected from employees via the
Pay as you Earn (PAYE) system. Benefits include: free healthcare via
the National Health Service. Child benefit. Unemployment benefit,
entitlement to redundancy payments, maternity payments after
qualifying periods. Pensions.
An A-Z of benefits is given at the Department for Work and Pensions site.
http://www.dwp.gov.uk/lifeevent/benefits/index.asp
Department for Work and Pensions.
http://www.dss.gov.uk/
Inland Revenue.
http://www.inlandrevenue.gov.uk/home.htm
v. What social benefits and taxes are applicable to foreign employees
Mostly the same as local employees except for income support.
vi. How do foreign companies register
Inland Revenue - Online registration
https://online.inlandrevenue.gov.uk/index.jsp?AffGroup=org
vii. Can foreign companies transfer funds across borders freely
Yes.
viii. What is the rate of VAT
The rate of VAT depends on the product. There are rates of 17.5%
(standard rate), 5% (reduced rate) and 0% (zero rate).
Betting, gambling and lotteries are classed as exempt supplies and are
not charged VAT.
http://www.hmce.gov.uk/forms/notices/700-01cs.htm#P154_8155
Gambling duties.
Lottery duty is 12 percent of gross stakes.
http://www.hmce.gov.uk/business/othertaxes/betting.htm
HM Customs and Excise ? VAT.
http://www.hmce.gov.uk/business/vat/vat.htm
Changes to UK business law.
http://www.osborneclarke.com/publications/text/Companylaw.htm
Department for Trade and Industry ? information on doing business in the UK.
http://www.dti.gov.uk/for_business.html
ix. Is VAT applicable on sales to other countries
No.
x. Can foreign lotteries be offered in the country
No, they are illegal.>
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<Please ask for a clarification if any of the answers need further explanation.>
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<Hope this helps.> |
