The new Health Lottery launched by media tycoon Richard Desmond has been lambasted by voluntary sector leaders for not giving enough to charity.

 Association of Chief Executives of Voluntary Organisations (ACEVO) chief executive Sir Stephen Bubb has branded the lottery a ‘disgrace’. Bubb says: “Our key concern is that the Health Lottery is being set up as a direct rival to the National Lottery and as a result, less money will be going to charity and more will be taken in profits.”

He is particularly critical of the fact that only 20.34p in every £1 will be spent on good causes by the Health Lottery. The legal minimum for a society lottery is 20p in every £1. The National Lottery gives 28p for every £1 and also pays 12p in tax as it is not a ‘society lottery’. Bubb adds: “I have asked the government to review the position on society lotteries as a result.” Society lotteries are usually run by local charities such as hospices.

Nick Wilkie, chief executive of London Youth says: “If one turns a profit on a lottery that gives less to good causes than the National Lottery, that is arguably profiteering on the back of the British public’s good will.”

A representative from the Health Lottery was unavailable to comment on the criticisms.

The Health Lottery, that has its first draw on Saturday (Oct 8th), aims to raise at least £50m a year for health charities across the UK, with a focus on supporting local projects. It is not a national lottery but 51 local society lotteries each representing one or more local authority areas. Each lottery is licensed by the Gambling Commission and will raise money for health related good causes within each local authority area. 

The money will be channelled through the People’s Health Trust (PHT), an independent charity which works closely with the local communities within each of the 51 areas. It will oversee the allocation of funds.

Examples of projects that might receive funding include support for older people to keep fit and help avoid vascular dementia; respite programmes giving young carers a break and community healthy-living initiatives. Societies will take turns in participating in the weekly draw, so each week different areas will be represented and get a share of the pot.

Richard Desmond has been promoting the Health Lottery through his many media outlets,under headlines such as “£50m Lotto Tonic for Britain” and “New Lottery to Make Britain Better” on the front pages of the Daily Star and the Express newspapers respectively, drawing criticism that he is using his media empire to advertise the lottery.

Philanthropist Desmond, who owns the company Northern & Shell, which also has OK! Magazine and adult TV channels in its portfolio,says he has given over £40m to charity in recent years. This includes company donations from Northern & Shell and money raised by the RD Crusaders, a rock band he formed in 2003 with Who star, Roger Daltrey, singer, Lulu and musicians Russ Ballard, Rick Wills, Steve Smith and Zoot Money.

The band has raised around £14m for a variety of charities including The Teenage Cancer Trust and Norwood. In April 2010, Daltrey, Ballard and Desmond launched The RD Crusaders' WorkHub center for the Norwood charity, offering work experience for people with learning disabilities. In 2006, Desmond became President of the Norwood charity. He has also financed Moorfields Eye Hospital, the world’s largest paediatric eye clinic.

In 2010, Desmond was ranked the equal-57th richest man in Britain according to the Sunday Times Rich List, with a net worth of £950m, He was listed on the 2011 Sunday Times Rich List, with his fortune remaining at £950m.

Born in north London to a Jewish family, Desmond had a taste for business from an early age. His father, was the manager of cinema advertising company, Pearl & Dean but had a sudden loss of hearing due to an infection. He took his son along to business meetings to act as “his ears”.