About National Lotteries Commission of South Africa(NLC)
The National Lotteries Commission (NLC) was established in terms of the Lotteries Amendment Act (No 32 of 2013) to regulate the National Lottery as well as other lotteries, including society lotteries to raise funds and promotional competitions.
The NLC evolved out of the National Lotteries Board, established in terms of the Lotteries Act No 57 of 1997.
Other responsibilities of the Commission include advising the Minister of Trade and Industry on policy matters relating to the National Lottery and other lotteries.
NLC members are also trustees of the National Lottery Distribution Trust Fund (NLDTF), into which National Lottery proceeds that are intended for allocation to good causes are deposited.
The NLC does not adjudicate applications for funding or make allocations to organisations. This is done by committees known as distributing agencies which are also appointed by the Minister of Trade and Industry, in conjunction with other relevant Ministers, after a process of public nomination. The NLC provides administrative support to the distributing agencies.
At present the percentage of National Lottery revenue that is transferred to the NLDTF is 27%. This is fixed in the licence granted to the current National Lottery operator. Each week this percentage of National Lottery revenue is transferred to the NLDTF.
The financial year of the NLC and the NLDTF runs from 1 April to 31 March and funds accumulated during a particular financial year are available for distribution in the following year.
This includes interest earned on the money in the fund. Any money that is not allocated in a given financial year remains in the fund and can be allocated in subsequent years.
In line with the regulations of the Lotteries Amendment Act, No 32 of 2013, the allocation of NLDTF funds to the different sectors is set down in regulations and is currently as follows:
- The Charities Sector receives 47% of the total pool.
- The Sport and Recreation Sector receives 28%
- The Arts, Culture and National Heritage Sector receives 23%
- An amount equal to 2% of the total is reserved for the Miscellaneous Purposes Sector. These funds are used for various activities that fall outside the scope of the main three sectors. Board members of the NLC allocate such grants in accordance with conditions set by the Minister of Trade and Industry.
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