Operator of the National Lottery Could Face Financial Penalties
The UK Gambling Commission is considering financial penalties for the new National Lottery operator Allwyn.
UK National Lottery operator potentially facing penalties. © PauloDiniz, Pixabay
Key Facts:
- The UK Gambling Commission has been keeping an eye on new lottery operator Allwyn
- The company hasn’t fulfilled several important objectives it had promised to meet
- The UK Gambling Commission is now considering fines for the lottery operator
- Allwyn has cited several key factors that explain why it hasn’t fulfilled its objectives
The UK Gambling Commission is carrying out a review of Allwyn, the current operator of the National Lottery. This is because Allwyn, which is still in the process of taking over the lottery from Camelot, hasn’t satisfied some key contractual obligations.
When Allwyn campaigned for the multi-billion-pound National Lottery contract from the outgoing company Camelot, it vowed to carry out various technical upgrades. A report from The Times confirms that these upgrades haven’t happened yet.
Allwyn’s Response
Allwyn has cited a few factors that have prevented it from reaching its target of implementing the upgrades. These include the complexity and scale of the operation, which it didn’t fully appreciate when committing to the upgrades, and a number of legal challenges.
In Allwyn’s annual report, the following was said about the company’s current situation and its issue with the UKGC:
While Allwyn UK continues to progress as expeditiously as possible while prioritising contributions to good causes, after the end of the reporting period a contractual milestone in the enabling agreement was not reached. The Gambling Commission is reviewing what, if any, enforcement action might be taken against Allwyn UK in relation to that milestone.– Allwyn Annual Report, Allwyn Comments on National Lottery Takeover Progress, Gambling Insider
Allwyn has also confirmed that it has successfully managed to maintain the National Lottery’s annual contribution to good causes at £1.6 billion. The company insists it’s doing everything it can to keep this going and confirmed a greater portion of each ticket sale goes towards good causes.
In fact, Allwyn has plans to double the amount of money the National Lottery contributes to good causes every week from £30 million to £60 million. It hopes to achieve this by the end of its licence agreement, which is set to last 10 years in total.
What Happens Next?
There’s no indication of when the UKGC could issue a fine to Allwyn or how great a financial penalty could be. While Allwyn has failed to deliver on some targets, the company is determined to avoid fines and manage the National Lottery as efficiently as possible.
The company’s FY2024 financial report stated that its annual revenue was €8.79 billion, a 12% increase from the previous year. Allwyn is clearly in a great position and shouldn’t have a problem making good on its promises.
