Why Camelot doesn't gamble with its players

Camelot’s unique role in operating the National Lottery invariably brings intense public and media scrutiny — attention which is set to multiply as it prepares to bid for a third licence. In May Camelot announced the longest period of growth in its history, with sales of £5bn, much of which was driven by the introduction of new games and new channels. Online, mobile and interactive digital TV sales were up by 145% on the previous year.

But while this impressive performance boosted returns to good causes by £50.5m to £1.5bn, concerns about gambling escalate. Doctors at this year’s British Medical Association annual conference said that the National Lottery had made gambling more socially acceptable. They predicted catastrophic addiction rates from the rise of internet gambling in all of its forms.

The inherent paradox of loss and largesse is not squandered on Camelot. Since its inception in 1994, the lottery operator has recognised the importance of marketing its products responsibly. Its player protection programme, on which it spent almost £1.5m in 2004/05, exists to prevent underage and problem gambling, and integrates prevention into product design, marketing and retailing.

‘In terms of our overall approach to social responsibility, we have a series of priorities, and player protection is number one’, says Clare Griffin, Camelot Corporate Responsibility Manager.

Camelot is regulated by the National Lottery Commission. Annette Lovell, its director of licensing and deputy chief executive, says:

‘We take player protection very seriously. It is one of our statutory duties and it is also one of the key requirements set out in the current competition for the third licence to operate the National Lottery’.

Further, Camelot is duty bound by its own self-written marketing code, reviewed annually, which is approved by the regulator.

‘This involves not positioning the lottery as anything other than a game of chance and ensuring that it doesn’t appeal to those under 16’, says Griffin. Advertisers and marketers are also briefed not to present the lottery as an alternative to debt reduction, and outdoor advertising near to schools or on certain youth media channels is prohibited.

The games themselves are designed according to a proprietary Game Design Protocol, which uses expert research from academics and public interest groups such as the gambling advice charity GamCare. This risk matrix tool allows the company to predict how vulnerable people in certain risk groups will respond to new lottery games or scratch cards. If needed, revisions or extra protection measures are incorporated into the marketing strategy.

Camelot also trains its 26,000-strong UK network of retailers how to recognise and refuse sales to both excessive players and children under 16. Retailers are shown DVDs of young people and asked to pinpoint their ages. ‘We train them to learn no ID means no sale’, says Griffin. They are supported by information in a quarterly magazine and can use posters, stickers and refusal registers to further mitigate problems.

Responsibility does not stop there. The retailers are monitored through a test purchase programme called Operation Child in which mystery shoppers who look under age but are over 16 years make 10,000 visits per year. Those retailers that sell to minors are given training and followed up. If retailers sell on a third visit, Camelot will remove their terminal. However, this year saw its best results ever: some 92.7% refused to sell to test purchasers on the first visit.

But it’s the interactive channels where Camelot faces its biggest challenge given soaring rates of internet gambling. It has tackled underage gaming by making interactive players register first. Details are independently authenticated by the credit checking agency Experian, which also confirms a valid UK debit card. People can also set up self-imposed limits to prevent lapses.

Camelot was the first UK organisation to gain GamCare accreditation for its online, interactive TV and mobile phone services. Head of development, Teresa Tunstall, says:

‘Camelot has gone beyond GamCare’s requirements and has worked continuously to combat problem gambling’.

While the system is not yet watertight — Griffin admits that, as with any online purchase, a child could use its parents’ details if they know their security information — children’s charity NCH has tested the website and found it to be one of only two which prevent children from registering.

Camelot’s player pre-vention programme is part of a wider approach to social responsibility which includes environmental policy, third-party audited social reporting, and involves a £2m donation to its charity, the Camelot Foundation, every year.

Engagement with all of its stakeholders is vital to the group’s philosophy, particularly with public interest groups such as GamCare — with whom it has just produced a public information leaflet — the Salvation Army, church and faith groups, parents and academics.

There is also a forum of 12 retailers, from giants such as Tesco to independents, which meets quarterly to discuss plans and concerns.

Chief executive Dianne Thompson, in Camelot’s latest social report, captures their vision neatly:

‘The challenge we face is to continue to maximise returns to good causes at the same time as minimising the risk to more vulnerable groups. It is a call to remain vigilant to stakeholder concerns and to ensure continual monitoring of our impact’.

Anita Pati is a freelance writer specialising in corporate responsibility and the voluntary sector.