Agenda item

Report of the Strategic Initiatives Officer

Cabinet received a report of the Strategic Initiatives Officer which sought the Executive’s decision on whether to proceed with a local lottery scheme.

The Mayor introduced the report.  He stated that this had been one of his manifesto commitments.  He was keen for the council to support the voluntary sector and this was a way to raise further funds to assist them.  Local lottery schemes were already in place in the neighbouring authorities of Hertsmere and St Albans.

The Mayor invited Councillor Dychton to provide further information.

Councillor Dychton explained that the proposed lottery scheme would raise additional funds in an exciting and engaging way.  The lottery would operate weekly and 60p in every £1 spent would go directly to good causes.  The remaining funds would go into the prize pot and cover the cost of administration.  The proposed operator, Gatherwell, had launched over 100 similar schemes with local authorities.  The scheme would provide a new source of funds for the voluntary and community sector.  It would enable them to become more sustainable and to continue to help Watford residents.  Research into the scheme included carrying out an equalities impact analysis in order to understand and mitigate any potential impacts.  Conversations had been held with the neighbouring authorities to understand the risks, benefits and learning from their schemes.  If approved by Cabinet it would be launched later in the year.

Councillor Bell commented that it was important to help the local voluntary sector.  However, there was some concern from residents that their council tax was being used for gambling.  Some residents would not be happy with the scheme based on moral and religious grounds.  It was important that the proper safeguarding measures were in place.  In addition, the lottery should not be relied on for funding.

The Mayor responded that individuals did not have to play the lottery.  There were a number of funding streams to support to the local voluntary sector.  The local lottery was extra.  With regard to the comment about the lottery being funded by council tax, he advised that a separate organisation would be running the administration of the lottery and was funded by the entry fee.

Councillor Dychton added that Gatherwell had very good safeguarding procedures in place.  Overall, there would be a benefit for the organisations and it would support them in becoming independent.  The right safeguarding procedures in place would support those who wanted to participate and stop those who should not.

Councillor Bell noted the responses and commented that he understood safeguarding would be in place and he would see how the scheme progressed.

The Mayor added that he had spoken with the current lottery provider, who was located in the town and the new one.  He had asked them about gambling issues and had been advised that it was not usually relevant to local lotteries, but other forms of gambling.

RESOLVED –

1.      That the council enters into a contract with Gatherwell Ltd, to deliver a local lottery scheme for Watford.

2.      That an officer is allocated to manage the lottery and engagement with the voluntary sector to promote the scheme as a part of their full time role.

3.      That a process is implemented to allocate funding from the local lottery’s general fund. The recommendation is that a new approach is tested whereby a representative group of residents/community organisation representatives is established to review and support the decision making process, voting on options to allocate the funding. Appropriate governance should be implemented in order to monitor total monies raised on an ongoing basis. In addition to this, the council can ask funding beneficiaries to report back how the monies are spent, providing valuable insight into the tangible benefits of the scheme.

4.      That a comprehensive engagement strategy is established for the lottery, to ensure both initial and ongoing momentum to sign up and engage community groups/charities to take part in the scheme and make it a successful, ongoing funding stream for their services.

5.      That clear rules and eligibility criteria are established as part of the launch project, in order to mitigate risks around access to funding and problem gambling.