Management Commentary Why the Olympic Lottery Distribution Fund (OLDF) was needed London was chosen as the host city for the 2012 Olympic and Paralympic Games on 6 July 2005. Funding for the London 2012 Olympics comes from a variety of sources, including the National Lottery. Under new funding arrangements announced on 15 March 2007, up to £2.175 billion will be contributed by the National Lottery. £750 million of this is expected to be raised by designated Olympic Lottery games.
The OLDF was established to receive and hold the monies generated from the Lottery specifically for the 2012 Olympics until distributed by the Olympic Lottery Distributor to fund any facilities, services or functions which the distributor considers are necessary or expedient to provide or undertake for the delivery of the 2012 Games. The balance held in the OLDF is invested by the Commissioners for the Reduction of the National Debt (CRND) and any investment proceeds added to the amount available to the Olympic Lottery Distributor.
The fund came into legal existence on 8 April 2005 under the terms of the Horserace Betting and Olympic Lottery Act 2004(Commencement No.2) Order 2005 (SI 2005/1134). The Fund was dormant until the announcement of the success of London as the host city for the 2012 games. The first receipt of monies into the OLDF was on 2 August 2005. The fund will close once its primary purpose has been met and the Secretary of State makes the Order required under section 28 of the 2004 Act to wind up the fund.