Allwyn formally awarded National Lottery licence

The Gambling Commission has formally awarded the fourth National Lottery Licence to Allwyn Entertainment UK.

The development follows the decisions by incumbent operator Camelot and gaming company IGT to withdraw their respective appeals against the regulator’s choice of Allwyn as the preferred applicant to run the National Lottery from 2024.

An automatic suspension remained in place as the Court of Appeal in July granted Camelot and IGT permission to appeal a High Court decision allowing the Commission to formally award the fourth National Lottery licence.

Camelot, which has held the lottery licence since its inception in 1994, has initiated legal proceedings in April in relation to the competition process.

With both firms withdrawing their appeals, the suspension has been lifted and the Commission has now entered into an Enabling Agreement with Allwyn. This means that Allwyn has been officially awarded the fourth licence, commencing the transition.

“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,” Andrew Rhodes, Gambling Commission chief executive, said.

“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.”

The Commission said it has begun meetings with Allwyn and Camelot to ensure a seamless and timely transition, adding that the Enabling Agreement will assist both parties in transitioning between licences and provide the framework for implementation.

As per the Commission, key changes for the fourth licence include:

• A new incentive mechanism that ensures the licensee’s incentives and delivery are better aligned with contributions to good causes. Under this mechanism the licensee’s profits will be more closely aligned to the returns to good causes than ever before
• A move to an outcomes-based approach, in line with best practice and the National Audit Office’s recommendations. This will give the licensee greater responsibility to fulfil its obligations, while retaining the Commission’s power to intervene if they do not
• Greater flexibility for the licensee, allowing them to more rapidly, and effectively, adapt their offerings to reflect changing technology, consumer safety, regulation and consumer preferences, so long as they meet the licence obligations
• A fixed 10-year licence, providing the licensee with a clear period for investment planning
• A retail charter to ensure the next licensee engages proactively with retailers when the fourth licence commences in February 2024.