Camelot is to lose its license to run the UK national lottery after 28 years as the Gambling Commission named rival Allwyn as its preferred applicant to take over.
Allwyn, which is owned by the Czech group Sazka, Europe’s largest lottery operator, is expected to take over from Camelot in 2024.
“The selection of Allwyn as preferred applicant follows a fair, open and robust competition which received four applications at the final stage,” the Gambling Commission said.
“The Gambling Commission is content that all applicants are fit and proper to operate the national lottery. Recognising our role as a responsible regulator we are also satisfied that no application is impacted by sanctions related to the conflict in Ukraine.”
As part of its bid Allwyn pledged to donate £38bn to good causes over the next decade, almost equivalent to the £45bn Camelot raised since it began running the national lottery in 1994.
“Our priority was to run a competition that would attract a strong field of candidates,” said the Gambling Commission chief executive, Andrew Rhodes. “Having received the most applications since 1994, it is clear we’ve achieved just that. We look forward to working with all parties to ensure a smooth handover.”
Camelot, which employs more than 1,000 people, has been named as the reserve applicant. This means it would continue to run the lottery “in the event that finalisation candidate could not be achieved with the preferred”.
Allwyn, which is run by the Czech billionaire Karel Komárek, has also proposed reducing ticket prices from £2 to £1 and having two draws on one night.
The Allwyn bid chairman, Sir Keith Mills, was instrumental both in winning the 2012 Olympics bid for London and in organising the Games. In the world of business, he is revered as the brains behind air miles and Sainsbury’s Nectar card.
Allwyn’s star-studded advisory board also includes the former Sainsbury’s chief executive Justin King and the venture capital guru Brent Hoberman, and it is working with Vodafone on the technology underpinning its bid.
King will now take over as chairman of the Allwyn UK business.
“I’m delighted that Allwyn’s proposal has been deemed the safest to grow good causes in the safest and most sustainable way possible,” he said. “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. 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.”
“I am confident that the success of the competition will lead to a highly successful fourth license,” said Rhodes. “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.”
The other biggest bidders for the license were the Italian operator Sisal, which is now jointly owned by Flutter, the owners of betting brands including Paddy Power and SkyBet; the private equity group CVC; and the New Lottery Company, which is run by Richard Desmond’s Northern & Shell.
“I’m incredibly disappointed by today’s announcement, but we still have a critical job to do – as our current license runs until February 2024,” said the Camelot chief executive, Nigel Railton. “We’re now carefully reviewing the Gambling Commission’s evaluation before deciding on our next steps. I’m enormously grateful to our 1,000-plus employees who have been unwavering in delivering record-breaking results during the current license.”
Camelot staff will transfer to the Allwyn operation under the UK’s TUPE rules – the Transfer of Undertakings (Protection of Employment) Regulations – in line with the license being moved to the new operator. However, it is not clear if the TUPE transfer will apply to all current staff.
