Lottery no longer a draw

As a lottery retailer, we were not able to purchase tickets after 11.30 on Wednesday 22 December and as we had sold out by mid afternoon we, and I understand other retailers, were unable to top up and the lottery lost sales accordingly.

Back in the old pre-Guernsey Post days we could literally purchase tickets to sell right up to the draw time from our lottery agents.

Speaking of Guernsey Post, I would like to know how much profit they made from distributing lottery tickets. I know that they are operating on a 2.5% margin when they sell to retailers, although they would make a 10% margin on their sales through post office counters, but let’s do some costing analysis.

There are at least three, possibly more, quasi civil servants processing lottery sales, with holiday pay, sick pay and pensions to factor in. At least two very expensive new electric cars add to the costs.

When we compare to pre-Guernsey Post days we had three lottery agents. They received no holiday pay, no sick pay and no pension scheme.

They provided their own cars, paid for their own fuel and cost us, the taxpayer absolutely nothing.

But then States’ Trading Assets looked with envious eyes at the money the agents were earning and went out to tender, which was won by Guernsey Post, another States’ Trading Assets department. No conflict of interest there then I am sure.

The agents gave the retailers a

truly outstanding level of service which the post office could never achieve.

It has to be said that the public have lost faith in the Christmas lottery as it is now, with people commentating on social media on the lack of smaller prizes and the pretty pathetic first prize, compared to a few years ago when it was around the £1m. mark.

I have personally heard people saying that they are not buying as many tickets as they used to and the whole draw needs looking at.

Trevor Hockey

Trev’s Motorcycles

Editor’s note. Jon Taylor, CI Lottery manager for Guernsey, replies: Thank you for your letter and the opportunity to respond.

Guernsey Post was appointed as CI Lottery distribution main agents in May 2020 following an open tender process.

Guernsey Post’s proposals scored the highest and provided the best value, and provide robust regulatory controls and management around responsible gambling.

The company has subsequently worked hard to manage what has been a major transition during a very challenging trading period.

As with any significant change, it has involved a period of adjustment for all parties, and the understanding, flexibility and cooperation of the lottery retailers is very much appreciated.

The distribution contract is reviewed annually and our feedback from the reseller network is that Guernsey Post has provided very good service and support since their appointment in 2020, although as with any undertaking I am sure there is room for improvement.

With regards to the Christmas Lottery, in 2020 a Channel Island-wide survey was carried out to better understand what islanders wanted.

It found that that 89% of the population in Jersey and 85% in Guernsey had participated in the 2019 CI Christmas Lottery. 73% of participants supported a ticket price of £2, which we acted upon and reduced the then current price of £3.

Four out of five participants said the chance of winning was the main reason they bought a ticket, which is why we now have more instant and drawn prizes than ever before.

The first prize may no longer be £1m., but it can still be a life-changing amount for the lucky winner or winners.

65% of all the revenue from the Christmas Draw is redistributed through prizes. Any remaining proceeds, once the costs of running the draw are covered, are distributed to charitable and other not-for-profit organisations throughout both bailiwicks.

All the proceeds from the other scratch-card games in the Bailiwick of Guernsey go either toward the running costs of Beau Sejour, or are set aside for distribution to good causes through the Social Investment Fund, as well as previous contributions to projects such as the forthcoming Island Games.

Therefore while the States Trading Supervisory Board is tasked with ensuring the lottery operates effectively, efficiently and responsibly, it retains none of the proceeds generated through the sale of tickets.

The main beneficiaries from the reduction in operating costs through the new distribution arrangements are the numerous charitable and worthy causes which the lottery helps to fund each year.