Camelot Set To Launch Internal Review Following Fall In Sales
The proliferation of private online lottery companies like lottoland are widely blamed by national lottery companies like Camelot for falling revenues. In previous reports we have reported on legal efforts by Camelot to block the Gibraltar based lottoland from offering cheaper lottery tickets. Camelot point out that these companies offer insurance based online lottery tickets are not compelled to return any of their proceeds to good causes and are therefore being afforded an unfair advantage as well as taking money that could have been diverted to good causes.
This could well explain the fact that Camelot sales dropped by 8.8 percent in ticket sales to £6.92bn for 2016/2017. This drop follows record revenues of £7.6bn in the previous year. Despite the drop in sales revenues were still the fourth best performing since the National Lottery started operating in 1994.
Camelot are understandably under pressure to explain this drop as clearly they are failing to engage players and are losing market share o much more aggressive companies like lottoland.
Camelot unlike private lottery companies give back 95p of every pound in revenues to good causes which the government defines. Last year say £1.6bn go to good causes which was a decrease of £273m from the previous year.
Retail sales also took a knock of £607m to £5.4 billion. Also concerning was the drop in digital sales which is seen as vital for any operator. Here they fell by £63.3m to each £1.5bn.
A review of the results and the reasons behind them will be conducted by CEO Nigel Railton. Aspects under review will include evaluating the approach to technology, the firm’s structure and overall commercial approach.
On the positive side subscription sales did grow by £48.4m to £373.1m. Camelot have plenty of time to turn things around as their license to operate the National Lottery runs until 2023.