It is no secret that Birmingham is facing financial difficulty. This year saw cuts to public services as the UK’s second-biggest city declared bankruptcy. As it struggles to find funds, a US-style state lottery could be one solution. We discuss how Birmingham could use this to its advantage in the article below.
How Do US State Lotteries Work?
The first US State Lottery was in Puerto Rico in 1934. State lotteries had existed before this, usually to fund churches and infrastructure, even during the Civil War. However, many were unregulated – there are now regulated lotteries in 45 states.
The figures for how much they raise can vary, but it is around $17.6 billion across the 45 States with its added jurisdictions like Puerto Rico. All of this goes back into the state itself, something which could happen in Birmingham.
However, there have been incidences where policies have led to issues. This has usually been because state lotteries have to earn a certain amount to continue. This has been despite no budget from the states they work in for marketing and advertising.
Could This Work in the UK?
The National Lottery is regulated by the UK Gambling Commission. Only small-scale charitable lotteries are permitted without a license. Only one company has a license to run the National Lottery, and this does not expire until 2034, which could prove problematic.
There are other lotteries that people can play in the United Kingdom. One of these is the Irish lottery, and many online casinos and sportsbooks sell tickets for the country’s lotto. For example, Lottoland sells online lottery tickets from both their Irish and United Kingdom websites which allow users to be on the results”. The top prize for the Irish lotto can be an average of around €100,000 depending on the week. Another is the People’s Postcode Lottery, though this has a sizeable charitable section.
Under the umbrella of this comes other gambling methods, such as scratchcards. This could be another option for Birmingham, working alongside or as a standalone to a county lottery model. The money from these scratchcards could go back into the council’s education, healthcare and infrastructure.
How Will It Differ From a National Lottery?
The lottery and its prize pot will be less than the National Lottery. As a result, ticket prices will need to be somewhat cheaper. Amendments may have to be made to the chances of winning if they remain the same price, to ensure customers are getting value for money.
A way to raise prize pots could be to open the lottery up to residents from elsewhere, much like the Irish lottery. However, this could open the floodgates for different areas of the United Kingdom each having their own lottery, saturating the market.
The funds from this could benefit Birmingham hugely. However, there are regulatory and safe gambling concerns that would need to be addressed. The potential revenue must be worked out carefully and balanced with the benefits it could bring, before bringing it to parliament and attempting to be the first state lottery in the country.
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