After Allwyn was announced as the new National Lottery licence holder a few months ago, the operator was now formally awarded its licence. Previously, the official licence awarding was postponed as the UK Gambling Commission (UKGC) was not allowed to continue with the licence transition due to the automatic suspension of the process. While the High Court decided to lift the automatic suspension, on 14 July, Camelot and IGT were allowed to appeal the court’s decision. That led to the licensing process still being delayed as the suspension could not be lifted.
After Camelot and IGT decided to withdraw their appeals, the suspension was lifted and the UKGC was able to move to the next stage of Enabling Agreement with Allwyn. That means that Allwyn was officially granted the National Lottery licence and the Commission is able to move on with the transition.
UKCG Strives for Smooth Transition to New National Lottery Operations
The UK gambling regulator ensured that its main goal is to provide a smooth transition to the fourth National Lottery licensee, with participants and charities being the main concern during the transitioning process. The UKGC is currently in talks with both Allwyn and Camelot, hoping that the current licence holder will cooperate in the transition to the next licensee.
The purpose of the Enabling Agreement with Allwyn is to provide assistance to both the current and the future licence holders, ensuring a smoother transitioning process. Since it was launched in 1994, the National Lottery has been operated by Camelot Group. Following the Fourth National Lottery Licence Contest, Allwyn was chosen as the new licence holder and is supposed to start its work as the new National Lottery operator in 2024.
New National Lottery Licence Holder Indicates Several Key Changes for Lottery Operations
Since its launch in 1994, the National Lottery has raised over £46 billion, helping 670,000 good causes across the country. Allwyn is willing to put its investments in the National Lottery, hoping to improve its products and channels so it can provide a bigger contribution to good causes across the UK.
With Allwyn becoming the fourth National Lottery licence holder, there are several major changes to be introduced in the operation process. One key reform includes the introduction of a new incentive model, which will ensure a better distribution of incentives to good causes.
The new licence holder will also adopt a new outcome-based approach, which will be compliant with best practice and recommendations by the National Audit Office. Another major change will give the new licensee bigger flexibility, enabling the operator to take action quickly and stay abreast of the latest technological changes and provide products that will be in line with regulations, consumer safety and preferences.
A major change that will be introduced with the new licensee is granting a licence, which will have an expiration period of 10 years. The longer licensing period will give the operator more time for proper investment planning. A retail charter will also be introduced to help the new licensee have better engagements with retailers.
Following the formal awarding of the fourth National Lottery licence to Allwyn, Andrew Rhodes, UKGC Chief Executive Officer noted that the regulator is pleased to follow the very successful competition process with the official licence awarding. Mr Rhodes added that he believed Allwyn and the new major changes will ensure better returns to good causes, promotion of innovations, fulfilment of operational duties, and overall protection of the National Lottery’s unique status.
- Author
Olivia Cole
