In May Camelot announced that it had experienced its best sales performance in a decade. In the most recent full year to 31 March 2009 total National Lottery sales stood at £5149.1 million, an increase of £182m on the previous year. This has resulted in an additional £28m for good causes. Camelot put this down to their strategy of growth and innovation. But perhaps, as research has suggested, it is more to do with the recession and a sign of people exploring new avenues to making money.
In an uncertain financial climate, the Sector needs to look at existing funding streams and consider what the likely impact of a recession may be on these. One area of interest is the Lottery. Is it recession proof?
Unsuprisingly there is little UK evidence due to the relatively short time the Lottery has operated in this country. However, evidence from the US suggests that Lottery spending may not necessarily decline in a period of hardship. In fact, an article I read recently quotes research by John Mikesell, a professor at Indiana University published in 1994 showing that from 1983 to 1991, lottery sales tended to rise with unemployment rates.
However, the same article goes on to refer to a survey of regular players by Independent Lottery Research, a consulting firm based in Chicago, which found that last month 20 percent of them were already playing less or buying less expensive tickets.
Either way, a combination of this uncertainty and less Lottery money followng the diversion of funds to support the Olympics, makes the need for VCOs to diversify their income streams, ever more important.
In an uncertain financial climate, the Sector needs to look at existing funding streams and consider what the likely impact of a recession may be on these. One area of interest is the Lottery. Is it recession proof?
Unsuprisingly there is little UK evidence due to the relatively short time the Lottery has operated in this country. However, evidence from the US suggests that Lottery spending may not necessarily decline in a period of hardship. In fact, an article I read recently quotes research by John Mikesell, a professor at Indiana University published in 1994 showing that from 1983 to 1991, lottery sales tended to rise with unemployment rates.
However, the same article goes on to refer to a survey of regular players by Independent Lottery Research, a consulting firm based in Chicago, which found that last month 20 percent of them were already playing less or buying less expensive tickets.
Either way, a combination of this uncertainty and less Lottery money followng the diversion of funds to support the Olympics, makes the need for VCOs to diversify their income streams, ever more important.
Details of the article:
New York Times, September 13, 2008 - ‘Sweet Dreams in Hard Times Add to Lottery Sales’ www.nytimes.com/2008/09/13/us/13lottery.html?_r=1&scp=1&sq=Independent%20Lottery%20Research.&st=cse&oref=slogin
I recently read this excellent article from Venturesome, ‘Financing civil society, a practitioner’s view of the UK social investment market’. It really simply outlines the capital needs in the sector, supply of capital and challenges for the future. These challenges, unsuprisingly, include a lack of understanding of financial needs amongst VCOs.
I agree that in a tighter economic climate individuals may move away from ethical products. However we could also see an increase in some ethical activities, like ethical shopping. While ONS figures for July show overall retail sales down 0.3% sales from Oxfam’s shops were up 7%. People appear more inclined to go to Charity shops when feeling the pinch!
Louisa
In May Camelot announced that it had experienced its best sales performance in a decade. In the most recent full year to 31 March 2009 total National Lottery sales stood at £5149.1 million, an increase of £182m on the previous year. This has resulted in an additional £28m for good causes. Camelot put this down to their strategy of growth and innovation. But perhaps, as research has suggested, it is more to do with the recession and a sign of people exploring new avenues to making money.
Louisa
In an uncertain financial climate, the Sector needs to look at existing funding streams and consider what the likely impact of a recession may be on these. One area of interest is the Lottery. Is it recession proof?
Unsuprisingly there is little UK evidence due to the relatively short time the Lottery has operated in this country. However, evidence from the US suggests that Lottery spending may not necessarily decline in a period of hardship. In fact, an article I read recently quotes research by John Mikesell, a professor at Indiana University published in 1994 showing that from 1983 to 1991, lottery sales tended to rise with unemployment rates.
However, the same article goes on to refer to a survey of regular players by Independent Lottery Research, a consulting firm based in Chicago, which found that last month 20 percent of them were already playing less or buying less expensive tickets.
Either way, a combination of this uncertainty and less Lottery money followng the diversion of funds to support the Olympics, makes the need for VCOs to diversify their income streams, ever more important.
Details of the article:
New York Times, September 13, 2008 – Sweet Dreams in Hard Times Add to Lottery Sales
Louisa
In an uncertain financial climate, the Sector needs to look at existing funding streams and consider what the likely impact of a recession may be on these. One area of interest is the Lottery. Is it recession proof?
Unsuprisingly there is little UK evidence due to the relatively short time the Lottery has operated in this country. However, evidence from the US suggests that Lottery spending may not necessarily decline in a period of hardship. In fact, an article I read recently quotes research by John Mikesell, a professor at Indiana University published in 1994 showing that from 1983 to 1991, lottery sales tended to rise with unemployment rates.
However, the same article goes on to refer to a survey of regular players by Independent Lottery Research, a consulting firm based in Chicago, which found that last month 20 percent of them were already playing less or buying less expensive tickets.
Either way, a combination of this uncertainty and less Lottery money followng the diversion of funds to support the Olympics, makes the need for VCOs to diversify their income streams, ever more important.
Details of the article: New York Times, September 13, 2008 - ‘Sweet Dreams in Hard Times Add to Lottery Sales’ www.nytimes.com/2008/09/13/us/13lottery.html?_r=1&scp=1&sq=Independent%20Lottery%20Research.&st=cse&oref=slogin
Louisa
I recently read this excellent article from Venturesome, ‘Financing civil society, a practitioner’s view of the UK social investment market’. It really simply outlines the capital needs in the sector, supply of capital and challenges for the future. These challenges, unsuprisingly, include a lack of understanding of financial needs amongst VCOs.
Louisa
I agree that in a tighter economic climate individuals may move away from ethical products. However we could also see an increase in some ethical activities, like ethical shopping. While ONS figures for July show overall retail sales down 0.3% sales from Oxfam’s shops were up 7%. People appear more inclined to go to Charity shops when feeling the pinch!