The Lotteries Act prescribes the establishment of the NLDTF, which is to be managed by the National Lotteries Board. The Act further requires the Board to annually table a report in Parliament in respect of the Fund.

Each week Uthingo Management, the licensed operator of the National Lottery, transfers funds generated for good causes to the NLDTF. This amount is calculated using a pre-determined formula based on ticket sales in terms of the Licence to Operate the National Lottery. Contributions to good causes, based on ticket sales, start at 10.16% and rise up to a high of 40.58%. Over the 7-year Licence period, an average of 30% of the proceeds after VAT will be contributed to Good Causes.

Funds in the NLDTF, together with the interest accumulated, will be used for the purposes as stipulated in section 26 of the Lotteries Act.

The financial year of the National Lotteries Board and the NLDTF runs from 01 April to 31 March. Funds generated for good causes in a particular financial year are available for distribution in the following year.


BENEFICIARIES OF GOOD CAUSE MONIES

The Lotteries Act identifies as beneficiaries of funds accumulated for good causes, the following five broad categories:

• Reconstruction and Development Programme
• Charities
  
• Arts, Culture and National Heritage
  
• Sport and Recreation
  
• Miscellaneous Purposes

In terms of Regulations promulgated on 31 May 2002 in Government Gazette No. 23465, the funds in the NLDTF allocated for good causes will be distributed as follows:

Reconstruction and Development Programme: 0%
Charities: 45%
Arts, Culture and National Heritage: 28%
Sport and Recreation: 22%
Miscellaneous Purposes: 5%