Lottery Provider Allwyn Faces Potential UKGC Penalties

Lottery Provider Allwyn Faces Potential UKGC Penalties


Unfulfilled Promises

The UK’s National Lottery operator, Allwyn, is currently under scrutiny from the UK Gambling Commission (UKGC) for failing to meet several key contractual obligations since assuming control from the previous operator, Camelot. The UKGC is reportedly considering administering financial punishments against the company as it conducts an ongoing investigation into these shortcomings.

Allwyn, who officially took over the multi-billion-dollar contract last year, had committed to a series of technical upgrades and service improvements as part of its successful bid. However, the company has not fulfilled several of its promises. Allwyn UK’s takeover of the National Lottery was signed off on in 2023 and completed last year.

The Allwyn UK annual report acknowledged that a contractual milestone had not been reached within an agreed timeline. The report also suggests that the UKGC is reviewing whether it can punish Allwyn and what form that punishment might take. The company also added that they were continuing to make progress as quickly as possible while focusing on making contributions to the National Lottery Good Causes.

In its annual report, Allwyn stated that it had faced several legal challenges in the last 12 months that had halted progress. They also noted that the unforeseen ‘scale and complexity’ of the changes had also been a major cause for delays. 

Positives Changes

Despite this, the company highlighted several positive steps it had taken in its first year as the country’s chief lottery supplier. They pointed out that they had maintained returns to charitable causes at £1.6 billion during this period. 

Allwyn also noted that under the Fourth National Lottery Licence, a greater share of revenue from ticket sales was allocated to good causes compared to previouslicences. On top of a percentage of sales, Allwyn also makes a fixed payment to National Lottery Good Causes every year. They hope to double the weekly returns to Good Causes from £30m to £60m by the end of their license agreement.


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