1. National Lotteries Board Portfolio Committee Briefing
October 2005

2. Agenda
Background
Organisational Structure
Financials
Activities

3. Vision/Mission To be a world class regulator VISION
and distributor of lottery funds
VISION
MISSION
To ensure that that the national and other lotteries
are run with the utmost integrity,
that the interests of all players are protected,
that the national lottery generates maximum
revenues for good causes in a responsible way and
that these revenues are disbursed expeditiously

4. National Lotteries Board
Joseph Foster
Nora
Fakude-Nkuna
Shelley
Thomas
Astrid
Ludin (DTI)
Henry
Makgothi
Nornan
Axten
George
Negota

5. The National Lotteries Act
Establishes the National Lotteries Board
Sets up the process for awarding the licence
Establishes the National Lottery Distribution Trust Fund (NLDTF)
Sets up the process of Distribution
Sets up process for Monitoring & Regulating
Private & Society Lotteries
Promotional Competitions

6. Functions/Objectives
Advise the Minister
on the issuing of Licence/s
on the percentages allocated to good causes
on the efficacy of Legislation related to Lotteries
Protection of Players
Maximize proceeds to good causes
Administer NLDTF
Monitor & Regulate Other Lotteries
Manage the Central Applications Office

7. Structure NGOs CBOs NLB Uthingo NLDTF REGULATOR Monitors activities
Applications
REGULATOR
Monitors activities
& approves games
NLB
Central
Applications
Office
Uthingo
NLDTF
Weekly transfer
Operates the
National Lottery 5%
22%
36%
22%
15% DA
Art & Culture DA
Charities DA
Sport DA
RDP DA
Misc
Allocation and distribution of funds (average turnaround time is 3 months)

8. Organisational Structure

10. National Lotteries Board’s Equity and Gender

11. Financial Statements

12. NLB Balance Sheet as at 31 March 2005
ASSETS
Non-current assets
Property, plant and equipment
Intangible assets
Current Assets
Investment in securities
Trade and other receivables
Prepayments and advances
Cash and cash equivalents
Total assets
EQUITY AND LIABILITIES
Non-current liabilities
Deferred income: Licence fees
Current liabilities
Trade and oher payables
Current portion of provisions
Current portion of deferred income   
Total equity and liabilities
2005
R’000
 528 67
595
209 15
1 063 -
607
228
 2004
718 19
737
519
203
513

13. NLB Income Statement for the year ended 31 March 2005
2004
R’000
Grants and transfers
Profit on disposal of fixed assests
Licence signing fees
Other income
Administrative expenses
Staff costs
Other operating expenses
Depreciation
Deficit from operations
Finance costs
Income from investments
Deficit for the year
16 618 1
228 51
16 898
5 230
9 075
2 250
412
(69) - 69
_______ _
8 578 4
111
8 921
4 899
7 488
745
625
(4 836)
(1)
237
(4 600)

14. NLDTF Balance Sheet as at 31 March 2005
ASSETS
Current Assets
Investment in securities
Trade and other receivables
Cash and cash equivalents
Total assets
EQUITY AND LIABILITIES
Capital and reserves
Current liabilities
Trade and other payables
Total equity and liabilities
2005
R’000
9 656
__________
2004
14 386

15. NLDTF Income Statement for the year ended 31 March 2005
2004
R’000
R’000
Revenue
Other income
Disbursement of funds
Assistance to the National Lotteries Board
Other operating expenses
Deficit from operations
Finance income
Operating surplus for the year
7 585
18 944 18
( )
__________
4 690
8 045 14
( )
________
40 366

16. Budget 2004/2005 2005/2006 2006/2007 Income 348 6,848 36 Grant 16,618
2004/2005
2005/2006
2006/2007
Income
348
6,848 36
Grant
16,618
16,225
34,324
Expenditure
16,966
23,073
34,360

17. Cost/Disbursement Ratio
NLB UK
NDA

18. Activities Regulation Distribution of NLDTF National Lottery
Other Lotteries & Promotional Competitions
Distribution of NLDTF

19. Structure NGOs CBOs NLB Uthingo NLDTF REGULATOR Monitors activities
Applications
REGULATOR
Monitors activities
& approves games
NLB
Central
Applications
Office
Uthingo
NLDTF
Weekly transfer
Operates the
National Lottery 5%
22%
36%
22%
15% DA
Art & Culture DA
Charities DA
Sport DA
RDP DA
Misc
Allocation and distribution of funds (average turnaround time is 3 months)

20. Regulating the National Lottery
Retail Outlets
Payments to the NLDTF
Copyright and Trademarks
Player Relations
Advertising
Security
Systems
Banking and Record Keeping
Payment Security
Ancillary Activities
Directors, Shareholders and Subcontractors
Social Responsibility

21. Salient Lottery facts for the year ended 31 March 2004
Prize Winners
Millionaires
Rollovers
Highest Jackpot
Highest Prize
Average Number of Players Per Week
Total LOTTO Sales (incl. VAT)
Highest Weekly LOTTO sales
Total Prizes Paid
Total Contribution to NLDTF
113 47
R30 Million
R23,3 Million
6,9m R R R R

22. Contributions (average over 7years)

23. Ticket Sales Per Province (Rm)

24. Structure NGOs CBOs NLB Uthingo NLDTF REGULATOR Monitors activities
Applications
REGULATOR
Monitors activities
& approves games
NLB
Central
Applications
Office
Uthingo
NLDTF
Weekly transfer
Operates the
National Lottery 5%
22%
36%
22%
15% DA
Art & Culture DA
Charities DA
Sport DA
RDP DA
Misc
Allocation and distribution of funds (average turnaround time is 3 months)

25. NLDTF Disbursements Actual Cash Paid 31 March 2005 (Mil)
2001
2002
2003
2004
2005
Total
Charities
69.5
174.5
305.8
631.7
Arts
25.4
40.2
140.3
190.7
396.6
Sport
21.6
62.6
149.5
226.9
460.6
Miscellaneous
4.1
0.0
9.6
17.4
0.6
31.7
116.5
286.9
613.0

26. NLDTF Disbursements Available VS Allocated (R000)
Beneficiaries
Charities
956
Arts
266
Sport
750
Miscellaneous
84 684
633 1
Total
1973

27. NLDTF Disbursements Provincial Spread
Arts
Charities
Sport
Misc
Total
National
76 746
78 260
633 EC
13 402
55 244
26 390
95 036 FS
11 468
27 106
1 892
40 466 GP
73 039
34 063
KZN
32 653
56 633
35 419
LIM
11 244
13 641
30 891
55 776 MP
174
21 861
9 864
31 899 NC
2 988
22 020
20 407
45 415 NW
8 646
17 453
40 991
67 090 WC
80 041
92 415
49 884

28. NLDTF Commitments Grants made but not paid (Mil) as at 31 March 2005
Charities
357
Arts
482
Sport
463
Miscellaneous
Total
1 302

29. Charities Focus Capacity Building Poverty Alleviation
Community and Residential Programmes for
children
youth
women
the aged
persons with disabilities
people affected by / infected with HIV/AIDS
the terminally ill
drug abusers

30. Charities Activity Year Ending March No. of Applications received
Year
Ending
March
No. of Applications received
No. of Applications Approved
No. of Applications Rejected
Pending
2002
2255
849
1406 -
2003
4063
1357
2670 36
2004
3925
856
2302
767

31. Arts, Culture & Heritage Focus
Major Projects of National Significance
Rural Grants for projects designed to serve the community
Creative Development Grants
Festivals
Film Production and Distribution
Public Art
Heritage: Architectural, Archaeological, Historical and Indigenous Knowledge Systems.
Environment

32. Arts, Culture & Heritage Activity
Year
Ending
March
No. of Applications received
No. of Applications Approved
No. of Applications Rejected
Pending
2002
746
149
597 -
2003
1398
283
1097 18
2004
1838
680 48
1012

33. Sports Focus
Capacity building for sports people, managers, administrators and coaches.
Equipment and kit for teams and clubs.
Upgrading of existing sporting facilities.
Major events

34. Sports Activity Year Ending March No. of Applications received
Year
Ending March
No. of Applications received
No. of Applications Approved
No. of Applications Rejected
Pending
2002
535
247
288 -
2003
1016
408
606 2
2004
1457
209
194
1054

35. Strategic Objectives 2006-8
Increasing National Lottery Sales and Contributions to the NLDTF
Improved Licence Compliance
Improved NLDTF Distribution
Termination of Illegal Lotteries
Improved Publicity
Re-Licensing process

36. END