The National Lottery, which was changed into a public-law limited company on 16 July 2002, is required to organise, in the public interest and according to commercial methods:
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public lotteries, betting opportunities and competitions in the forms and according to the general procedures laid down by the King, based on a proposal from the Minister in charge;
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games of chance in the forms and according to the general procedures laid down by the King, by decree deliberated in the Council of Ministers, on a proposal of the Minister in charge and the Justice Minister, and following the opinion of the Gaming Commission.
MISSION ENTRUSTED BY MANAGEMENT CONTRACT
Espousing the spirit of the Act of 19 April 2002, the management contract in existence between the Belgian State and the National Lottery has, among other aspects, consecrated the guidelines that the latter must follow in order to achieve its mission as “a socially responsible and professional provider of recreational pleasures”. Although for the promotion of the games that it organises, the National Lottery, following the example of private companies, can have recourse to powerful marketing methods, it is however required to use them for the simultaneous achievement of two vitally important objectives.
The mission of the National Lottery consists of channelling the market for gaming for money by offering gaming enjoyment to a broad group of players via entertaining games, which are also socially responsible. This channelling duty implies that it can call on sustainable and efficient commercial methods, while observing the strictest rules concerning ethics, consumer protection and guarantee of quality. A management contract, entered into between the Belgian State and the National Lottery, defines the conditions according to which the latter accomplishes its public service tasks, i.e. the respective rights and duties of the National Lottery and the Belgian State towards each other. The new management contract between the National Lottery and the State was published in the Belgian Official Journal on 20 September 2010. This contract lays down guidelines for the next five years.
This contract opens up new prospects for the National Lottery. It determines the outline of the National Lottery's strategy for the next few years, and will have an impact on the future diversification options (channels and game products). This framework document gives the National Lottery the possibility of developing its commercial activities and at the same time fulfilling its social role. It also allows the National Lottery to establish subsidiaries or partnerships with private companies or other public lotteries, all with a view to guaranteeing more efficient operation, use of the latest technologies and a response to the most recent market trends.
Via this contract, the National Lottery is able to adopt a strategic position in relation to the challenges of the next five years. These developments are allowed to take place provided that the obligations under the management contract are strictly observed, i.e.:
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consumers must be protected;
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quality and security must be ensured;
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the importance of the traditional network must be maintained.
As a socially-responsible and professional provider of entertaining games, the National Lottery is required to channel the propensity to gamble. In this context the new contract provides that the National Lottery shall:
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regularly evaluate its market share;
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aim its activities at all players;
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develop new products and adapt them to new market trends;
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make use of the latest techniques and means in line with market developments;
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publicise its products among the general public via appropriate advertising campaigns;
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uphold its positive image at all times;
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constantly optimise awareness of its products.
The new management contract also contains a number of obligations that relate to responsible gaming. The National Lottery undertakes to:
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make every effort to obtain “European Lotteries” certification;
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establish the role of the Responsible Gaming Committee;
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protect vulnerable groups by not aiming advertising messages at them;
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regularly improve its “ethical and responsible advertising code”;
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not to develop or market games that are directly aimed at minors;
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support initiatives to combat gambling addiction;
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have the impact of a new type of product or service on problem gambling examined by the Responsible Gaming Committee.
In order to maintain its monopoly, the National Lottery pays a licence fee to the Belgian State. The federal government increased this amount by € 8,237,000, making a total of € 95 million per year for the next five years. At the same time, the National Lottery has an obligation to pay subsidies to Belgian Development Cooperation, the National Disasters Fund, the Belgian Survival Fund, the King Baudouin Foundation and other purposes that are in the public interest. The total amount of these subsidies is set at € 225.3 million per year until 2015.
As a public-law limited company that is extremely conscious of its social role, the National Lottery does not always use the sponsorship instrument in the way that a purely commercial company would. In addition to product-oriented sponsorship, it uses also the instrument of social or goodwill sponsoring, focused on the National Lottery’s image as a public welfare organisation. Initiatives encouraging the integration and wellbeing of underprivileged categories of the population (Restos du Coeur, Christmas dinners, visits to shows and exhibitions at reduced prices) are a good example of this.
SAFEGUARDING THE MISSION
The safe and responsible games of the National Lottery offer an alternative to private gaming, which may be legal, but more addictive, or even illegal. And by playing, you are doing something useful, since a considerable proportion of the proceeds flows back into society in the form of subsidies to charitable organisations and initiatives. Therefore, the National Lottery sees carrying on this role of protecting society and funding good causes as an important mission. This vision leads to its conviction that the market for lotteries and games of chance should not be liberalised. The National Lottery wishes to maintain its monopoly. Games of chance and lotteries are not just marketable service, and must remain subject to specific protective regulation.
If the market for games of chance were to be liberalised, it would be subject to different laws. Competition between business operators would lead to aggressive marketing and sales techniques and more games with a greater chance of addiction. It would not be the public interest that took priority, but profit maximization. That kind of approach is not compatible with the economic nature of games of chance and the important social mission of the National Lottery.
In order to fulfil this social mission, the National Lottery must monitor political developments, both at European and national level. The company must inform policy-makers and point out to them the potential social risks of certain policy decisions.