Gambling Commission overhauls National Lottery licence conditions as Allwyn transition begins

The Gambling Commission has unveiled a raft of changes to the National Lottery licence conditions after Allwyn was cleared to become the competition’s official operator.

Allwyn – which will now take over the contract in February 2024 after incumbent Camelot dropped its legal appeal against the licence award – must meet several new conditions.

Key changes for the fourth lottery licence include a new incentive mechanism, whereby Allwyn’s incentives and delivery must be better aligned with its contribution to good causes.

Camelot was criticised by MPs in the past for spotlighting higher margin, instant win lottery games that generate fewer charitable funds for good causes than traditional draws.

Under the new incentive mechanism, the new lottery licensee’s profits will be more closely aligned with their returns to good causes than ever before.

The regulator has also introduced a more outcomes-based approach.

This will give Allwyn greater scope to fulfil its responsibilities but will also allow the Commission to intervene if certain obligations are not met.

Gambling Commission CEO Andrew Rhodes: “I am confident that Allwyn and the key changes for the fourth licence will maximise returns to good causes, promote innovation, deliver against our statutory duties, and ultimately protect the unique status of the National Lottery.”

Another amendment is designed to allow Allwyn greater flexibility. This should enable the company to adapt more rapidly and effectively to changing technologies, said the regulator, especially with regards to consumer safety.

Finally, the contract will be awarded on a fixed 10-year licence. This will provide Allwyn with a clear timeline for investment planning.

Gambling Commission CEO Andrew Rhodes said: “We are pleased to have officially awarded the fourth licence to Allwyn following a highly successful competition and the court’s decision to lift the suspension on the award process.

“We now look forward to working with all parties to ensure a smooth and efficient handover.

“I am confident that Allwyn and the key changes for the fourth licence will maximise returns to good causes, promote innovation, deliver against our statutory duties, and ultimately protect the unique status of the National Lottery,” he added.

The regulator has already begun meetings with Camelot and Allwyn and has stated its priority to ensure a “seamless and timely” transition to the next licence.

The UK’s National Lottery is one of the world’s largest lotteries.

Since launching in 1994, the National Lottery has collectively raised more than £46bn for 670,000 good causes across the UK, investing in the arts, sport and local communities.

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