Supplementary memorandum submitted by
Vernons Pools
Vernons Pools would like to thank you and the
members of the Committee for the opportunity to present its evidence
to the Enquiry into the Operation of the National Lottery.
As you rightly pointed out at the meeting, the
introduction of the National Lottery has radically changed the
position of the Pools industry, probably more than anyone anticipated
when the Lottery was launched in 1994.
The Pools market has reduced from £988
million to £180 million in the current year—an overall
decline of 82 per cent. This severe financial squeeze has led
to a dramatic fall in employment in Merseyside, with the industry
now employing around 650 people, compared with 5,700 in mid-1994.
These job losses have mostly affected long serving employees who
have inevitably found it difficult to find alternative employment
opportunities in the area.
The Pools industry continues to battle for survival
in an increasingly competitive market, to protect its future and
the futures of its 650 loyal and heavily committed employees on
Merseyside.
Mr. Chairman, you specifically asked what help
the industry needs and how the Committee could help the Pools
industry, and I now detail these opportunities:
1. POOLS BETTING
DUTY
Pools Betting Duty is currently 17.5 per cent,
which is a considerably higher rate than our competitors in the
gambling market. A reduction in this tax will help fund the marketing
of the Pools, the introduction of new games and the continued
support for The Foundation for Sport and the Arts and The Football
Foundation.
2. PRODUCT DEVELOPMENT
The Pools companies currently take bets on the
Irish National Lottery, which is attractive to a relatively small
number of customers each week. If we were able to take bets on
the UK National Lottery, we would be able to provide a game which
would attract new customers without ever being able to compete
with the multi-million pound jackpots of the National Lottery.
3. DISTRIBUTION
Vernons current operation is based on a telephone
and postal distribution channel because it can no longer support
a national part time collector service field force. This presents
a severe limitation on distribution of the product, which could
be greatly improved if we had access to the National Lottery terminal
distribution network.
November 2000
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