One of the frontrunners for the operating licence of the UK National Lottery has pledged to double the amount redirected as donations to charity organisations that have been made by Camelot over the past decade.
Allwyn, which is currently one of the fastest-growing euro lottery companies and a gambling market leader in the Czech Republic, has made a promise to donate a total of £38 billion to good causes in the following 10 years in case the UK gambling regulatory body grants it the operating permit for the National Lottery. In comparison, the now-operator of the UK National Lottery, Camelot, has donated £16 billion to good causes since 2012.
As Casino Guardian previously reported, the UK Gambling Commission (UKGC) is the one responsible for making a decision for the new lottery franchise. The major gambling regulatory body of the UK is expected to decide on the new holder of the National Lottery operating licence any day now, but it may not publicly announce the outcome until March 2022.
Recently, the competition between Allwyn and Camelot, the now-holder of the operating licence of the UK National Lottery, has heated up, with some individuals close to the process saying that Camelot could have an advantage over all of its rivals.
Allwyn and Camelot Considered to Have the Best Chances of Winning the UK National Lottery Licence
The promise associated with the funding of good causes made by Allwyn was made as part of the company’s application submitted to the UKGC in October 2021. It also comes after a number of politicians shared their concerns about the proportion of the revenues of Camelot that have been redirected to good causes in the country.
Reportedly, the profits generated by the company increased from £29 million in 2010 to £78 million ten years later. According to critics, the increase is partly because of placing a more serious emphasis on scratch cards. On average,
10p in every pound spent by customers on scratch cards offered by the UK National Lottery under the operation of Camelot are given to charity organisation. In comparison, an average of 30p in every pound from lottery draws is granted to charities.
However, the company that has been operating the National Lottery since 1994, says it is incorrect to associate any increase in profits to a more serious focus on scratch cards.
As previously reported, Allwyn, which is operated by the Czech Republic-originating billionaire Karel Komarek, has proposed a reduction of the National Lottery ticket prices from £2 to £1. The company also proposed having
2 lottery draws on one night, which sources familiar with the matter believe would increase the amount of money that is redirected to good causes.
According to an industry source close to the situation, the pledge to boost good causes funding made by Allwyn was the encouraging stimulus needed by the UK Lottery. The source also shared that the fact that funding to good causes has fallen from 28% to 23% over the past decade is truly shocking.
Sources close to the current holder of the UK National Lottery licence, on the other hand, said that annual returns to good causes were now estimated to be more than £500 million higher than they were at the beginning of the third Lottery licence in 2009.
For the time being, the UKGC said that it was still evaluating the competitors, so it was currently unable to comment on the application process or on individual rivals.
- Author
Olivia Cole
