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Set For Life

We grant licences for each game, or class of games, promoted as part of the National Lottery. LottoEuroMillionsThunderballLottoHotPicksEuromillionsHotPicks, Set For LifeScratchcards and Interactive Instant Win Games all have their own licences. The licence to run the National Lottery is called the Section 5 licence.

Whenever Camelot want to make changes to any of these games they must apply to us for approval.

Before we will approve any changes and allow amendments to the game licence or licence additional games we look at issues like:

  • player protection
  • projected returns to good causes
  • protecting player funds
  • legality
  • impact on the National Lottery brand and intellectual property. 

We check that Camelot complies with the terms of those licences. 

Listed below is the history of changes to the EuroMillions licence and our reasons for agreeing them.


March 2019 

Rationale for agreeing Condition 23 Licence Investment Proposal: Set for Life Marketing Investment

Summary

 

  • On 07 December 2018, Camelot served the Gambling Commission with a Licensee Notice of Investment Opportunity (the proposal) in accordance with the provisions of Condition 23 of the Third Licence which was granted to Camelot on 12 March 2019.
  • The proposal requested £10.2m of investment in Set for Life marketing from the National Lottery Distribution Fund to support the launch of the game and the first year of the game being in market. Camelot will fund an additional £3m in incremental capital spend, meaning that a total of £13.2m will be invested in the new Set for Life game during this period.
  • The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to secure that:

 

    • The National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
    • The interests of every participant in a lottery that forms part of the National Lottery are protected; and
    • Subject to the provisos in (a) and (b), that the net proceeds of the National Lottery are as great as possible.
  • The evaluation process undertaken by the Commission regarding this proposal has been both robust and extensive, utilising the support of external experts where necessary.  After engagement with Camelot, the Commission has ensured suitable changes to the Section 5 Licence to ensure that the £3m capital expenditure provided by Camelot is incremental to existing Licence requirements.
  • Following the conclusion of this evaluation process, the Commission approved the proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:

 

    • Secure a significant increase in the net proceeds of the National Lottery; and
    • Continue to ensure that the National Lottery is run with all due propriety and the interests of every participant in the National Lottery are protected.

Decision and rationale

 

  • The detailed assessment completed by Officials, and the findings of external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver significant incremental benefits to Good Causes.
  • The new Set for Life game would not be launched without investment as there would not be sufficient marketing budget to enable a successful launch.

Propriety

 

  • The Commission is satisfied that the proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.

Player interests

 

  • The potential impacts of the proposal regarding player interests are limited. We do note however, that consumers are likely to see additional advertising as a result of this decision, and the Commission will continue to challenge Camelot on its wider progression in terms of player protection measures. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.

Returns to Good Causes

 

  • The overall investment ‘deal’ is highly positive for Good Causes.  Camelot is investing 22.7% of the total investment amount, with Good Causes forecast to receive around 97% of the gross benefit.
  • Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that Good Cause returns on the investment are positive in all plausible scenarios.
  • The conclusion from this work is therefore that the proposal is likely to deliver substantial additional Returns to Good Causes during the first year after the Set for Life game launches on 18 March 2019.

January 2019

Rationale for the approval of Set For Life 

Background: 

Rationale for agreeing Condition 23 Licence Investment Proposal: Set for Life Marketing Investment

In March 2018, Camelot sought approval for a new annuity draw based game called Set For Life. The Gambling Commission  considered Camelot’s proposal over a six month period, and following consideration of its duties, is content to approve the game. The game is currently planned to launch in March 2019.

In summary, the main aspects of the Set For Life game are:

  • The ticket price is £1.50 per line
  • Matrix of 5/47 + 1/10
  • Draws will take place twice a week on Mondays and Thursdays
  • The overall PPO is forecast to trend at 54.4%
  • All prizes are fixed and there are no rollovers
  • The prize values for Set For Life are as follows:
    • A top prize (Match 5+1) of £10,000 per month for 30 years
    • A second tier prize (Match 5) of £10,000 per month for one year
    • Match 4+1 fixed prize of £250
    • Match 4 fixed prize of £50
    • Match 3+1 fixed prize of £30
    • Match 3 fixed prize of £20
    • Match 2+1 fixed prize of £10
    • Match 2 fixed prize of £5.

In reviewing the request for Set For Life, we considered the proposal in line with our statutory duties, which are: 

Propriety

 

  • We are satisfied that the Set For Life game is legal and consistent with the National Lottery brand.  
  • We continue to assess Camelot’s systems and controls through an annual programme of assurance activities. 
  • We are satisfied that there are separate arrangements in place which are not dependent on the operator to ensure that the annuity prizes will be paid to winners and will continue beyond the current licence period where relevant.

Protecting the interests of players

 

  • The prize structure should benefit players, and the annuity aspect of the game (for the jackpot and second tier prize), is a new offering for the draw based game portfolio.
  • Due to the fixed prizes on offer, in some extreme cases, Match 5+1 and Match 5 prizes will be capped. We have therefore challenged Camelot to ensure that the chances of capping is low, and where it occurs, it will be fully explained to players. 
  • Due consideration was given to the increase in draw based games in the portfolio with the introduction of Set For Life. Research evidenced that the game received positive reaction from potential players due to its new way of winning the jackpot over 30 years.
  • Separately, we are satisfied that the Set For Life game will not increase the risks of excessive or underage play and are not of particular appeal to under 16s. 

Returns to good causes

 

  • We are satisfied with the rigour of the process that Camelot has undertaken to design and develop the new game, and that the proposal was likely to lead to a positive return for good causes. 
  • While the Commission was suitably assured regarding the overall benefits of the new game, the fixed prize structure will mean that returns to good causes do fluctuate more on a week to week basis. In line with the action we have taken from a player protection perspective, we have also challenged Camelot to ensure that returns to good causes have been adequately protected over the long term in this respect. 

Decision

Based on the information provided by Camelot and our considerations, we approved the request.