UK National Lottery

Goals

To understand the UK Lottery in terms of how the lottery license is awarded and the regulatory issues related to it.

Early Findings

REGULATORY BODY AND LICENSING PROCESS

  • The UK Gambling Commission (UKGC) awards the National Lottery license.
  • As the governing body, the UKGC has "three overriding statutory duties," which include ensuring the lottery is run with propriety, that the interests of participants are protected, and that the proceeds are "as great as possible."
  • In November 2018, the UKGC began discussing the fourth National Lottery license with the global lottery market at the World Lottery Summit, which took place in Buenos Aires, but the formal bidding process is not yet scheduled.
  • The UKGC will be designing and initiating the competition for the next license during 2019, and the competition and ultimate transitioning to the next licensee will take place from Q4 2019 through 2023.

CURRENT LICENSEE AND RESPONSIBILITIES

  • Camelot UK Lotteries Limited has run the National Lottery since its inception in 1994.
  • Camelot was awarded its third license in 2009, and it was slated to last ten years.
  • In 2012, their license was extended by four years and is scheduled to expire on January 31, 2023.
  • The Section 5 license requires that Camelot submit policies and information for approval by the UK Gamlbing Commission.
  • Camelot's responsibilities as the licensee are to manage the infrastructure of the National Lottery, design new games, develop marketing support, provide services for both players and winners, and run the ticket-selling network.
  • The terms of the license require that Camelot UK Lotteries Limited, which is part of the larger Camelot Group, operates as a single purpose company, meaning they are "dedicated to the operation of the UK National Lottery."
  • According to their 2018-19 annual report, Camelot UK Lotteries Limited reported £7,206.8 million in ticket sales and £1,654.7 million, around £30 million per week, for Good Causes.
  • Camelot also reports that the company "continues to return around 95% of all revenue to winners and society," spending about 4% of revenue on operating costs.
  • In the most recent fiscal year, Camelot has increased sales but returned less to good causes because they spent more on marketing, but they did so in agreement with the UKGC.
  • Camelot does not distribute the money to Good Causes, as that is the responsibility of twelve National Lottery distribution bodies that are chosen by Parliament.

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