UK National Lottery prize structure
Facts about UK National Lottery prize structure
The lottery is essentially gambling, and the main difference between it and other games that are played in brick and mortar casinos or online, is that the investment is minimal and potential winnings huge.
The risk of addiction is also insignificant, but the bottom line is that the house always wins. While players accept the fact that only a few actually win when playing the lottery, not many are aware of the UK National Lottery prize structure and know how the funds are distributed.
Follow the money
Those who are genuinely interested where the money goes when they purchase a lottery ticket, will be surprised to hear that only 45% is put into the prize pool. 28% goes to the National Lottery Distribution fund, which is used to support cultural and artistic foundations, while 12% is taken by the government as tax. Five pence are kept by the retailers, another five goes to the Camelot group to cover their costs and keep him profitable, why the final 5p saves for Instant Win scratch card games and Super Draws.
Camelot retailers make a decent living thanks to the lottery commission, and despite the fact that a lottery ticket costs no more than £1, the entire system works like a charm. While the skeptics are accusing the luxury of being nothing more than a tax that naive people pay willingly, it is also responsible for many good deeds. Charities, health, arts, cultural, and heritage organizations receive a slice of the cake and with each ticket purchased, players are indirectly supporting these nonprofit organizations. Furthermore, the lottery was responsible for funding the London Olympics and Paralympic games with over £2.2 billion.
A fair distribution among winners
Equally important is how the funds are distributed among those who correctly indicate the lucky numbers, and those who hit the jackpot should know that 52% of the prize for is directly to them. If more players achieve this rare performance in the same week the money is distributed among them, while if nobody wins the jackpot, the money gets rolled over to the next draw. The 5+bonus-match prize winners get 16% of the prize pool and in case the jackpot is not one for four consecutive draws, it is also distributed among these players.
The 5-match prize winners will receive only 10%, but assuming that the jackpot is rolled over for the fourth time and there are no 5+bonus-match prize winners, these second tier victors share it. As a 4-match Prize winner one is expected to receive a fraction of the 22% allocated to these players, while those who correctly indicates only three numbers with cash in on a fixed £10 prize.
