Lottery operator faces £1bn shortfall
The arts world faced further funding agony after it was claimed National Lottery operator Camelot faces a £1 billion shortfall in the money pledged for good causes.
A report claimed Camelot was on course to deliver £9.5 billion profits for good causes against the £10.5 billion pledged at the time of the battle for the new Lottery licence.
It is feared that arts groups, heritage bodies and others could miss out on vital funding after they have already been forced to accept a £2.2 billion raid on Lottery funds for the Olympics.
The report was compiled by Mark Slattery, the former communication officer of regulator National Lottery Commission, who analysed the commission's annual reports for the last five financial years. His research revealed that just £6.74 billion had been given to good causes, including the Olympics. He also suggested that the shortfall could be as high as £1.3 billion.
Mr Slattery added that Sir Richard Branson, who bid for the licence when Camelot won last time, "was turned down because of the risk of his plans for a Lotto game that behaves similarly to how Lotto is now performing".
The claims, revealed by the Independent on Sunday, were challenged by Camelot and the NLC with both saying they could see no sign of a black hole and stressed it was on course to raise more than the pledged £10 billion.
A Camelot spokeswoman said sales were going well. Purchases for the first six months of this financial year were up 1.5 per cent on last year and £650.9 million went to good causes. It is the Government, not Camelot, that decides where the money goes.
