It is operated by Camelot Group, to whom the licence was granted in 1994, 2001 and again in 2007. The lottery is regulated by the National Lottery Commission, and was established by the then prime minister John Major in 1994.
All prizes are paid as a lump sum and are tax-free. Of every pound (£) spent on National Lottery games, 50 pence (p) goes to the prize fund, 28p to 'good causes' as set out by Parliament (though some of this is considered by some to be a stealth tax levied to support the Big Lottery Fund, a fund constituted to support public spending), 12p to the UK Government as duty and 5p to retailers as commission, while Camelot receives 4.5p to cover operating costs and 0.5p profit. The National Lottery returns a higher percentage of revenue back to society than any other Lottery. Players must be at least 16 years of age to participate in the lottery, either in the drawn lottery games or by purchase of lottery scratch cards. To date, National Lottery games have created over 2,700 UK millionaires.
History
A statute of 1698 provided that in England lotteries were by default illegal unless specifically authorised by statute. An 1934 Act legalised small lotteries, which was further liberalised in 1956 and 1976. There could be no big national lottery until the Government established one, however.The UK's state-franchised lottery was set up under government licence by the government of John Major in 1993, unlike most state lotteries which are operated by the state The National Lottery is privately operated on a state franchised basis in which the Camelot Group was awarded on May 25th 1994.
The first draw took place on November 19th 1994 with a special hour long show presented by Noel Edmonds and the first numbers drawn were 3 5 14 22 30 44 and the bonus was 10 and seven jackpot winners shared a prize of £5,874,778.
Tickets became available on the Isle of Man on December 2nd 1999 at the request of Tynwald.
The National Lottery undertook a major rebranding programme in 2002 designed to combat falling sales. This resulted in the main game being renamed Lotto and the National Lottery Extra being renamed Lotto Extra. However, the games as a collective are still known as The National Lottery. It is one of the most popular forms of gambling in the United Kingdom.
In November 2009 Camelot replaced its older Lotto draw machines. The new machines are named Arthur, Guinevere, Lancelot and Merlin, reusing names that were used in older machines. At the same time, new machines for the Thunderball game were introduced. The new Lotto machines are the Magnum II model, manufactured by SmartPlay International Inc., and the new Thunderball machines are the SmartPlay Halogen II model..
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