Lotteries Commission to retain control of its two major functions

16/12/98

The Lotteries Commission is to retain control of its two major functions, the sale of lottery products and the distribution of resulting funds to community organisations.

Racing and Gaming Minister Max Evans made the announcement today after tabling in Parliament his statutory review of the Lotteries Commission Act and the report of a steering committee which assisted him in the review.

The committee recommended that the two main functions be separated, with the distribution of funds being passed to an independent committee reporting to the Premier.

However, Mr Evans said that he had seen no evidence that there was any advantage in the separation. It was possible that it could add to the cost and it was also possible that Lotteries clients would be less supportive if the marketing of games was separated from the distribution of community benefits.

Cabinet had therefore accepted his recommendation that the commission retain both functions.

The committee had found that the need for the Lotteries Commission remained and that the commission was carrying out its responsibilities effectively.

Mr Evans said that the success of the commission's operations was revealed in the $125.7 million it contributed to the community in 1997-98.

Of this amount, $7.9 million each went to special accounts for sport and arts and $63.6 million to hospitals, while the commission itself distributed $46.3 million to 1,620 community organisations.

A further $31.1 million was paid as commission to lottery retailers.

While the overall performance of the commission was good, and it had a high level of acceptance in Parliament and among the public, some changes would be made:

·      the commission would cease to provide funds directly for commercial film ventures after 2000 when other arrangements would be made;

·      the regulatory role of the commission in relation to the conduct of lotteries would be transferred to the Gaming Commission, supported by the Office of Racing, Gaming and Liquor. This was not expected to detract from the commission's ability to continue to raise funds for the community, but it would put an end to the commission being the official regulator of its own business;

·      the commission would investigate ways to share resources and facilities with other Government agencies, particularly the TAB, where this would benefit its operations without affecting its independence;

·      amendments to the Act earlier this year had provided the commission with the commercial flexibility to enter partnerships, generate new products, make use of new technology, and market its professional skills as well as its products, so further commercial changes were not required at this stage; and -

·      the ban on Government agencies receiving discretionary funds from the commission would remain, but the Act would be clarified to ensure that the current eligibility of community bodies closely associated with Government agencies (such as Police and Citizens' Associations and Friends of King's Park) would be affirmed.

"The changes will support the commission's strong commercial focus and will strengthen its ability to raise funds for community purposes in a rapidly changing and highly competitive market," Mr Evans said.

"At the same time, the commission will continue to act in a socially responsible way and will not promote gambling, of which lotteries are one form, to the detriment of society."

Media contact: Hugh Ryan 9213 6705