Yahoo News National Lottery: The new company taking over Lotto
Camelot has always been the operator in charge of running the UK’s national lottery since it launched in 1994, however, that is set to change.
The Gambling Commission announced on Tuesday that Allwyn Entertainment is set to take over after it received the highest number of applications for its new licence.
It revealed that a total of four firms applied to licence the national lottery at the final stage of the process, with Camelot losing out to its rival, but being named as the reserve applicant.
Allwyn, as the preferred bidder, is set to take over in 2024, when Camelot’s licence ends. The new licence will run for ten years, until 2034.
Since launching almost three decades ago, the UK national lottery is one of the largest lotteries in the world, and has raised more than £45bn ($59bn) for around 660,000 UK causes.
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The company is a UK-based subsidiary of Europe’s largest lottery operator Sazka, which is owned by Czech oil and gas billionaire Karel Komarek. The tycoon has an estimated net worth of around $8bn (£6bn).
Allwyn, previously known as Sazka Entertainment, made its intentions known last year after it launched its British arm. As well as Camelot, it was up against Sisal Spa and The New Lottery Company for the National Lottery license.
It currently operates across Europe, including the Czech Republic, Austria, Greece, Cyprus, and Italy as its key markets.
Its board includes former members of the London 2012 Olympics organising committee, Lord Coe and entrepreneur Sir Keith Mills, who are advisors.
Allwyn said its proposal was "judged to be the best way of growing returns to good causes by revitalising the National Lottery in a safe and sustainable way".
"The appointment of Allwyn will breathe fresh life into the National Lottery," the company said in a brief statement.
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The decision comes just days after Allwyn and parent company Sazka launched a High Court challenge against the UK regulator, in a sign they were expecting to lose.
Former Sainsbury’s (SBRY.L) boss Justin King, will serve as the chairman of Allwyn’s UK business, having been chosen for the position last month.
King said: “I’m delighted that Allwyn’s proposal has been deemed the strongest to grow good causes in the safest and most sustainable way possible.
“The Gambling Commission has run a lengthy and detailed process, and I’ve been extremely impressed by the attention they have paid to the challenges facing The National Lottery over the coming decades.
He added: “The National Lottery is a vital British institution and we’re focused on ensuring it plays an even bigger part in society by increasing participation, improving safeguards, and giving back more to good causes.”
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According to the Department for Digital, Culture, Media and Sport, for every £1 of National Lottery ticket sales in 2019-20, 23p went to good causes, 12p to the government in lottery duty, 55p to winners in prizes, 4p to ticket retailers, 6p retained by Camelot to meet costs and returns to shareholders, and 1p kept by Camelot in profits.
The Gambling Commission said it was "satisfied" that no application had been impacted by sanctions imposed by western nations in relation to Russia's invasion of Ukraine.
"Our priority was to run a competition that would attract a strong field of candidates. Having received the most applications since 1994, it is clear that we've achieved just that," Andrew Rhodes, the Gambling Commission's chief executive, said.
"I am confident that the success of the competition will lead to a highly successful fourth licence - one that maximises returns to good causes, promotes innovation, delivers against our statutory duties, and which ultimately protects the unique status of the National Lottery."
