Solihull to launch its own lottery - with £25k jackpot

Council run lottery 'could raise up to £85,000' but concerns raised about encouraging gambling

A council-run lottery to bring in extra revenue for Solihull good causes has been given the backing of councillors. The lottery could raise an estimated £40,000 to £85,000 for community groups and organisations in the borough.

But it did not have the universal support of councillors at the latest meeting of the stronger communities and neighbourhood services scrutiny board due to concerns it could encourage gambling. Presenting a report to the board Alison McGrory, assistant director for communities and partnerships, said: “Lotteries are a good way to empower communities to fundraise.

“They are a low-cost way for those who want to contribute to causes they care about while having a chance to win prizes.” The report highlighted 120 authorities nationally already run a lottery scheme with the proposal for Solihull to run one along similar lines.

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Players would likely select a line made up of six numbers with prizes awarded to the number of matched numbers, and a top prize of potentially around £25,0000 for players matching all six numbers. The plan considered is for lottery tickets to be sold online at a cost of £1 each. Proceeds would be split:

• 50p to local good causes
• 20p to an external lottery manager running the scheme
• 20p to cover a prize
• 10p to Solihull Council to cover costs and create a central pot to be distributed

The officer stressed: “This isn’t about replacing council funding - this is about giving an additional stream of income organisations can apply for. Safeguards can be put in place to limit the amount somebody spends on this lottery.

“We can consider how and where we market it. This isn’t a lottery ticket people buy on impulse because it would be set up on a monthly direct debit.”

The officer said potentially a voting system could be set up where players chose which good causes would benefit. Coun Josh O’Nyons queried the estimated figures of what Solihull's lottery could raise saying his research had shown Birmingham ’s lottery was on track to raise £20,000 while Wolverhampton’s was set to raise £9,000.

“Are we confident ours would be any different?” he asked. The officer replied: “Based on 444 players - 0.25 per cent of Solihull’s population - would raise £41,000.”

Coun Leslie Kaye said: “I think we should be concerned we are encouraging gambling. I don’t think it is appropriate for public representatives to be doing this.

“Unfortunately this is going to operate as a tax on the lowest earning people in our community who tend to go in for lotteries. I’m against it. I think this is a waste of everybody’s time and a distraction and a complication for managers.”

But Ms McGrory said a risk review had been done and the authority would follow guidance from the Gambling Commission. "There is some evidence from lotteries across the country about the type of people that would tend to play,” she said.

“It is not necessarily the poorest (who play).” When a vote was taken seven voted in favour of setting up the lottery with one against.

Councillor Alan Feeney, chairing the meeting, added: “That will now go forward to the cabinet meeting for a decision.” The meeting was held at the Civic Suite on September 17.

Birmingham: A Child Poverty Emergency

Child poverty is soaring in Birmingham and without urgent change, will only get worse. Having worked with charities and community groups, BirminghamLive is campaigning for the following changes to start to turn the tide:

1. End the two-child benefit cap
2. Provide free school meals to every child in poverty
3. Create a city “aid bank” for baby and child essentials
4. Protect children’s and youth services
5. Create permanent, multi year Household Support Fund and give more Discretionary Housing grants
6. Set up child health and wellbeing hubs in our most deprived neighbourhoods
7. Appoint a Birmingham child poverty tsar
8. Provide free public travel for young people

You can see why in more detail here.

Read our full report Birmingham: A Child Poverty Emergency here.

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