UK National Lottery Good Causes Funding Falls 15.8% to £388.3m in Q2

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Altay Celikkaya

Content Manager

Updated: 03/11/26

Reading Time: 2 minutes

The UK National Lottery paid £388.3 million to Good Causes in the second quarter of the 2026/27 financial year, down 15.8% from the same period last year.

According to official statistics published by the UK Gambling Commission on 3 November, the total was £72.7 million lower year on year, reflecting weaker National Lottery sales between July and September 2026. Despite the annual decline, total payments rose 2.9% from the previous quarter, supported by higher contributions from unclaimed prizes and other sources.

Gambling Commission signage outside a building, with the British flag and Parliament behind it.

Markets & Regions

Key Takeaways From the UK National Lottery Q2 Results

Good Causes payments reached £388.3 million, down 15.8% year-on-year.
Quarterly payments increased by £11.1 million, or 2.9%, compared with Q1 2026/27.
National Lottery sales declined by 13.4% year-on-year and 6.6% quarter-on-quarter.
EuroMillions, Lotto and Interactive Instant Win Games recorded lower annual sales.
Newly introduced Powerball sales partially offset declines across existing lottery games.
The National Lottery generated more than £1.6 billion for Good Causes over the latest four quarters.

National Lottery Sales Decline Across Major Games

National Lottery sales fell by £264.6 million, or 13.4%, compared with the second quarter of 2025/26. The decline was primarily driven by weaker EuroMillions, Lotto and Interactive Instant Win Games sales.

Quarter-on-quarter performance was also negative, with total sales falling by £121.5 million, equivalent to 6.6%.

The Gambling Commission said:

Sales were lower across all existing games, with the largest reductions in EuroMillions and Lotto.

However, the introduction of Powerball in July 2026 helped offset some of these losses.

The game’s launch forms part of Allwyn’s efforts to expand the National Lottery portfolio. The UK government is also considering restrictions on third-party Powerball betting to protect official lottery participation and Good Causes funding.

Good Causes Payments Rise Despite Lower Sales

Although overall Good Causes payments increased from £377.2 million in the previous quarter to £388.3 million, the underlying contribution from lottery operations declined. The core Good Causes Contribution fell from £358.4 million to £336.9 million.

Meanwhile, other payments increased from £18.9 million to £51.4 million, offsetting the reduction. These additional payments include unclaimed prizes, interest earned on trust accounts and other miscellaneous income.

The figures highlight the difference between total Good Causes payments and contributions directly linked to lottery performance.

The results also follow the UKGC’s recent call for stronger player protection and improved Good Causes returns under the Fourth National Lottery Licence.

Lottery Performance Faces Continued Scrutiny

The latest statistics arrive as the National Audit Office conducts an independent review of the Fourth National Lottery Licence. The review will examine licensing arrangements, regulatory oversight and whether the framework supports long-term public value.

For lottery operators, suppliers and industry stakeholders, the latest figures provide an important measure of how product performance translates into funding for public programmes. While additional payments supported the quarterly total, weaker underlying sales and contributions remain important indicators for assessing the National Lottery’s performance under its current licence.