UKGC formally awards National Lottery licence to Allwyn
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UKGC formally awards National Lottery licence to Allwyn

Allwyn Entertainment UK has been officially awarded the National Lottery’s operating contract by the UK Gambling Commission (UKGC).

Allwyn was first named as the preferred candidate for the fourth National Lottery licence in March, but current incumbents Camelot contested the Gambling Commission’s decision and appealed to the High Court.

Therefore, commencement of the transition period was delayed until further notice, and the appeal sparked fears that significant funds could be diverted away from good causes.

But Camelot withdrew its legal appeal at the beginning of September and, consequently, the UKGC has now been able to enter into an Enabling Agreement with Allwyn.

This Enabling Agreement has cleared the way for Allwyn to be formally awarded the fourth National Lottery licence and the transition can begin ahead of the end of Camelot’s licence on January 31, 2024.

Andrew Rhodes, UKGC CEO, said: “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.

“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, Allwyn and Camelot have already begun meetings to ensure a ‘seamless and timely’ transition.

“The Enabling Agreement will assist both parties in transitioning between licences and provide the framework for implementation,” the Commission noted.

A number of changes are set to be made ahead of the fourth licence, including the introduction of a new incentive mechanism to ensure the licensee’s incentives and delivery are better aligned with contributions to good causes.

There will also be a fixed 10-year licence, providing the licensee with a clear period for investment planning, alongside a retail charter to ensure the next licensee ‘engages proactively’ with retailers.

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