Editorial note: this guide is general information about how bingo, competitions, lotteries and gambling work in the UK. It is not advice, and it does not describe any specific promotion offered by Fortune Games. Rules, prices and regulations can change, so always check the operator’s current terms.
Where does National Lottery money go?
Most of every pound spent on the National Lottery goes back to players as prizes. Broadly, around a quarter of each £1 goes to good causes — more from draw games and much less from scratchcards — about 12p goes to the Government as Lottery Duty, a few pence go to retailers as commission, and the remainder covers running costs and the operator’s profit. The exact split shifts year to year.
The breakdown of every £1
The largest slice always funds prizes, which is why so much flows straight back to players. The next priority is the good-causes fund: averaged across all games it is roughly a quarter of sales, but draw games such as Lotto contribute a noticeably higher share than scratchcards and instant wins, which return far less to good causes. On top of that, the Government takes Lottery Duty of around 12% of sales, retailers earn commission on tickets they sell, and the operator covers technology, marketing and staffing before taking its own margin.
What “good causes” means
Money for good causes goes into the National Lottery Distribution Fund and is shared between sectors including sport, the arts, heritage, health, education, communities and the environment. Independent bodies then award grants, so the lottery operator does not choose who receives the money. Since 1994 the National Lottery has raised tens of billions of pounds this way, and unclaimed prizes are added to the good-causes pot rather than kept by the operator.
Frequently asked questions
How much of a lottery ticket goes to good causes?
Averaged across all games it is around a quarter of every £1, but draw games give a higher share and scratchcards much less. The figure varies year to year.
Does the Government take a cut?
Yes. Lottery Duty of around 12% of ticket sales goes to the Government. This is separate from the good-causes fund and from prizes.
Who decides which good causes get the money?
Independent distributing bodies award grants from the National Lottery Distribution Fund. The operator collects and passes on the money but does not choose the recipients.
What happens to unclaimed prizes?
They are added to the good-causes fund rather than kept by the operator, so money from prizes nobody claims still supports projects across the UK.
Related guides: How does the lottery work? · What happens to unclaimed winnings? · What to do if you win the lottery
18+ only. Gambling should be fun, never a way to make money. Please play responsibly and only with money you can afford to lose. If gambling is affecting you or someone you know, free, confidential support is available 24/7 from the National Gambling Helpline on 0808 8020 133, run by GamCare. You can also visit BeGambleAware (begambleaware.org) or self-exclude from UK-licensed online operators through GAMSTOP (gamstop.co.uk).