South African national lottery ticket sales rose from R88,4-million in 1999/2000 to R3,77-billion in 2002/03, according to Trade and Industry Minister Alec Erwin.
In reply to a question from Democratic Alliance trade and industry spokesperson Mark Lowe, the minister noted that the administration costs of Uthingo — which runs the lottery — had risen from R132,5 million in 1999/2000 to $640,3-million in 2002/03. Prizes had risen from R39,9-million to R1,86-billion in this time.
Amounts available for distribution to good causes in this time amounted to R10,2-million in 2000/01, R439,2-million in 2001/02 and R1,021-billion in 2002/03, according to the minister.
Significantly, in 2000/01 only R4,-million was actually allocated while R222,5-million was allocated in 2001/02, R735,5-million was allocated in 2002/03 while in the first three months of this year R177,2-million has already been allocated.
In 2002/03 the amounts spent by Uthingo’s management was as follows: R528-million on VAT, R6,8-million on Escrow, R188,8-million on retailer commission, R5,8-million on RSC levies, R8,4-million on cost of sales/scratchcards, R90-million on tax, R101-million on dividends and R152,5-million “retained by the operator”.
The operating expenses of the National Lotteries Board are obtained from the National Lottery Distribution Trust Fund. The minister said a breakdown of expenses is included in the annual report of the board that would be tabled in Parliament in August. The board dispenses the funds for distribution through the National Lottery Distribution Trust Fund.
In the last financial year — 2002/03 — the largest slice of funds was allocated to charities – R344-million of a distribution total available of R367-million. Sport and reaction got R211-million of R224,6-million available. Spending on arts and culture was R170-million of a distribution amount of R224-million. RDP funds of R153-million were not allocated for spending. – I-Net Bridge