- Charity scratchcards make their actual money from the Charitable Lotteries Fund – the government pays compensation to the charities based on how much they sell.
- Rehab brought in an additional €4 million a year because of their sales, so their actual profit was way higher than €9,452.
For example, my charity might spend €1 to sell a €1 scratchcard. But the Government gives me an extra €1 compensation. So I’ve actually got a 2:1 ROI even though the actual ‘sale’ didn’t make a profit. To me that’s a sound investment.
- The Fund is being wound down, so this will no longer be the case, and so what you’ll see is charities not bothering to sell scratchcards anymore.
- The Fund was never really a great idea. But something had to be done because charity scratchcard prizes are capped at €20k. Nobody buys them because the prizes on the National Lottery scratchcards are so much higher. Theoretically, charities could make much more profit themselves if they could offer higher prizes and be competitive.
- The fair thing to do would be to remove the cap, but the Government won’t do this.
- If you were really cynical you might speculate the facts have been presented in this way because Rehab is suing the State.
For the record, I’m not a big fan of charity scratchcards. It’s hardly altruistic, is it? And do certain charities not see the hypocrisy of encouraging people to gamble so that they can fight addiction?
[I wrote this very quickly so please excuse any initial errors.]