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16
Dec
'Diminishing returns': Council withdraws from Harrogate district's Local Lotto
North Yorkshire Council has withdrawn from a weekly lottery scheme in Harrogate amid “diminishing returns” to the authority.
Harrogate Borough Council set up The Local Lotto in 2018 to help community groups survive at a time of shrinking local authority grants. The jackpot is £25,000.
In the last seven years, the scheme has raised £376,000 for causes across the Harrogate district.
But North Yorkshire Council, which inherited the lottery when Harrogate Borough Council was abolished in May 2023, said the lottery is “not viable” due to its demands on council resources and the lottery’s “modest” performance.
In a decision notice published this week, the council said it would not run a procurement exercise for the Local Lotto once its contract with external lottery manager, Gatherwell Ltd, expires in May 2026.
The authority added that it would cease operations of the scheme, but would help find a community organisation to run the lottery.
It added:
A full procurement exercise would be required to continue, but this is not recommended due to cost, complexity and diminishing returns to the council. It is felt that the community lottery would now thrive if it were transferred to a community provider.
Ann Duncan, senior development officer at council, said in a report that the council was currently in discussions with a community organisation to take over the lottery.
However, she added that “confirmation of transition arrangements and further due diligence” were still required.
Ms Duncan said the council would communicate any transition plans to existing players and causes during the last months of the contract.
What is The Local Lotto?
Draws take place every Saturday for a £25,000 jackpot and smaller weekly prizes.
Of the £1 ticket fee, 60p goes to good causes. The Stray Ferret recently reported here which ones benefited this year.
Prizes account for 20p, Gatherwell receives 17p and 3p goes on VAT.
A total of 122 voluntary organisations are currently registered to raise funds through the lottery.
Community groups benefit from grants from the Local Fund, which is administered by Two Ridings Community Foundation and raises funds from the Local Lotto and other foundations.
The council said in its report that it would have discussions over Two Ridings receiving money raised for the Local Fund directly, should a community organisation take over the Local Lotto.
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