Camelot UK, which currently holds the operating licence of the National Lottery, was expected to lose its contract for the first time since it took over the permit in 1994, until it has been put back in prime position thanks to the moves of some local officials.
As Casino Guardian has reported, the battle for the much-wanted lottery licence is now approaching its peak, with the country’s gambling regulatory body set to make a decision and choose between Allwyn, which is currently the largest lottery operator in Europe, and Camelot, which has been operating the National Lottery for almost 3 decades.
According to sources familiar with the matter, who asked not to be named, Allwyn, which is run by the Czech behemoth Karel Komarek, was in the prime position for the licence in the initial marketing. However, reports now say that the company has fallen back into the runner-up position after the UK Gambling Commission (UKGC) ran a risk factor assessment.
Rumour has it that local officials were insisting on Camelot UK being chosen as the preferred bidder for the National Lottery’s operating licence and its contract should be renewed for the fourth time, as it represented a lower risk for the operations, considering its extensive experience in running the National Lottery. However, some Members of Parliament have shared their concerns that too small of a proportion of Camelot’s revenues had been distributed to good causes.
Some MPs Criticise Camelot UK for Making Small Donations for Good Causes
Camelot UK has reported that its profits rose from £29 million in 2010 to £78 million in 2020 partly due to the increased emphasis on instant-win games and scratch cards purchases online. Reportedly, an average of 10p in every pound spent by customers on scratch cards is donated to local charity organisations, while instant-win draws bring about 30p in every pound to charities.
As the National Lottery operator shared, over £45 billion has now been raised for good causes in the UK. The company also noted that it has delivered around £140 billion for winners and society, saying that focusing only on one part of its portfolio does not present an accurate picture of its contributions to good causes.
One industry source close to the selection process said that Allwyn’s plans to cut National Lottery’s ticket prices do not seem very prominent, as such a move would also result in a reduction of the revenue raised for good causes and charities. Previously, Allwyn had proposed slashing the lottery ticket prices by half from £2 to £1. The company has also unveiled plans for having two draws in one night. This, according to reports, has helped it become the preferred candidate for the National Lottery licence in the initial marketing.
A recommendation for the next licence holder is set to be made to the Board of Commissioners of the UK Gambling Commission as part of the renewal process. The final decision will be made by the Board, with a formal announcement being expected to take place in March 2022. A spokesperson for the gambling watchdog has noted that the competition process has not been brought to an end yet.
- Author
Olivia Cole
