Allwyn, previously known as the Sazka Group, is set to become the operator of the UK National Lottery if it finalizes its agreement with the Gambling Commission. The new contract will commence in February 2024 and run for a decade.
Camelot, the incumbent operator since the lottery's inception in 1994, has been designated as the reserve applicant. Should the Gambling Commission fail to conclude a deal with Allwyn, Camelot will retain its role.
The selection of Allwyn followed a competitive bidding process that included The New Lottery Company, owned by Northern and Shell, Italy's Sisal, and Camelot. Last month, claims surfaced suggesting the regulator had already chosen Camelot, but these were swiftly described as "inaccurate" by the Gambling Commission.
Andrew Rhodes, chief executive of the Gambling Commission, emphasized the robust nature of the tender process, citing the number of applicants as a sign of its success. "In its lifetime, the National Lottery has raised more than £45bn for good causes and is rightly seen as a great national asset," he stated. "Having received the most applications since 1994, it is clear that we’ve achieved just that. I am confident that the success of the competition will lead to a highly successful fourth licence that maximizes returns to good causes, promotes innovation, delivers against our statutory duties, and protects the unique status of the National Lottery."
John Tanner, the Gambling Commission's executive director overseeing the licence competition, acknowledged the impressive quality of all four bids. The regulator also determined that each applicant was "fit and proper" to operate the lottery. Tanner commented, "We were impressed by the overall standard of applications, including the range and quality of innovation proposed and the high level of confidence and ambition demonstrated for the prospects of the National Lottery under the fourth licence."
Allwyn plans to invest in the lottery, aiming to foster growth and innovation in its products, which the Gambling Commission believes will increase contributions to good causes. "We welcome today’s statement by the Gambling Commission that we have been selected as the preferred applicant for the fourth National Lottery licence," Allwyn stated. "Our proposal was judged to be the best way of growing returns to good causes by revitalizing the National Lottery in a safe and sustainable way. The appointment of Allwyn will breathe fresh life into the National Lottery."
With Allwyn chosen as the preferred candidate, a legal standstill period will begin, allowing all applicants to evaluate the competition's outcome and receive feedback before entering into a formal agreement with Allwyn.
Once the agreement is signed, Allwyn will assume the role of incoming licensee, leading to the implementation of the new contract.
Camelot's chief executive, Nigel Railton, expressed disappointment over the decision but reaffirmed his commitment to delivering strong results until the current licence expires. "I’m incredibly disappointed by today’s announcement, but we still have a critical job to do – as our current licence runs until February 2024," he said. Railton added gratitude for his team’s dedication, highlighting record sales achievements during their tenure.
The fourth National Lottery licence will introduce changes, including a new incentives model designed to align the licensee's profits more closely with funds raised for charitable causes. The new licensee will enjoy greater flexibility to adapt its offerings in response to technological advances, regulatory requirements, and changing consumer preferences.
Originally, the previous licence held by Camelot was set to expire in August 2023 but was extended by six months last year. David Craven served as chief executive for Allwyn’s bid with bid chair Sir Keith Mills, while Dr. Mark Griffiths, an expert on gambling harm, was part of the advisory board for the proposal.
