National Lottery's Good Cause Funding Hits Two-Year Low Amid Sales Slump and Tech Woes
Funding for UK charities from the National Lottery has dropped to its lowest point in two years, according to the latest figures from the Gambling Commission. The slump raises fresh questions about the operator's ability to meet its ambitious pledge to double contributions to good causes over the next decade.
The lottery generated £410 million for charitable causes between October and December last year, an 11% decrease from the previous quarter. This marks the weakest quarterly performance since Allwyn took over the fourth National Lottery licence in February 2024.
The decline is attributed to a sharp fall in sales of two key products: EuroMillions revenue dropped by £37.4 million, while scratch card sales fell by £22.6 million. This compounded an existing shortfall, coming after a 5% dip in charitable funds reported between July and September.
Allwyn, owned by Czech billionaire Karel Komárek, had initially promised to boost total charitable donations to £38 billion over the licence period—effectively doubling the previous rate. The company later revised its public target to doubling weekly donations from £30 million to £60 million by 2034. The recent figures cast doubt on the trajectory needed to hit that goal.
Compounding the sales decline are persistent technical issues following a major IT overhaul. Allwyn recently undertook a weekend upgrade of its website and app—work that spilled into Monday and left customers reporting ongoing problems. The upgrade, which includes rolling out 43,000 new retail terminals, is now expected to cost £500 million, double the original budget. Delays have put Allwyn in breach of a key contractual milestone, potentially exposing it to regulatory action from the Gambling Commission.
In a statement, an Allwyn spokesman highlighted that returns to good causes are up £60 million on a like-for-like basis and expressed confidence in the long-term doubling target. The Gambling Commission stated it continues to oversee Allwyn's contractual obligations regarding the technology upgrade.
The National Lottery remains the largest single funder of community, arts, sport, and heritage projects in the UK. The latest downturn therefore signals potential headwinds for thousands of organizations reliant on its grants.
What People Are Saying
Michael Reeves, Charity Trustee in Manchester: "This isn't just a quarterly blip—it's a worrying trend. Many small arts charities budget years ahead based on Lottery forecasts. If this volatility continues, entire community projects could be in jeopardy."
Sarah Chen, Retail Manager (Newsagent, London): "Scratch card sales are definitely down. Customers complain the new terminals are slower, and the app glitches don't help. When the buying experience isn't smooth, people just walk away."
David Harrow, Political Commentator: "Allwyn promised the moon to win the licence—£38 billion for good causes! Now they're quietly backpedaling while splurging half a billion on a botched IT system. It's a classic case of overpromising and underdelivering, with charities left footing the bill."
Priya Sharma, Economist at a Think Tank: "The dip may partially reflect broader consumer spending pressures. However, the operational challenges are concerning. The Lottery's social contribution depends on reliability and public trust—both seem to be eroding."