DCMS launches National Lottery tender oversight inquiry
Government officials to examine preferred bidder and role of Gambling Commission throughout competitive process
DCMS has launched a new parliamentary inquiry to examine the tender process that decides the next licence holder of the UK National Lottery competition.
The Gambling Commission (UKGC) will look to announce its preferred candidate to take over running of the National Lottery from Camelot in September.
Camelot has held the operating licence since the National Lottery’s inception in 1994.
As part of the new competition to run the lottery, changes will be made to the operation of the licence to require that contributions to good causes will rise in a similar proportion to profits.
During the inquiry, representatives from the DCMS committee will scrutinise the preferred applicant as well as the selection process involved.
The role of the UKGC in the process will also be examined.
Key pillars of the inquiry focus on four areas.
These include the effectiveness of the competition when compared to the UKGC’s initial objectives, as well as looking at how the competition can ensure a smooth transition between Camelot and the next licensee.
In addition, the committee will examine the effect of good causes changes made as part of the fourth licence competition and the potential outcome for the wider UK lottery market.
DCMS committee chair Julian Knight MP cited the £43bn in returns to good causes raised since 1994.
“We want to make sure its future is in good hands,” Knight said.
“Our concern is not only with the operation of the competition to find the next operator, but also with the Gambling Commission that is overseeing the process.
“Crucially we’ll be asking what measures will be in place to ensure that when profits rise, it’s not just the operator that benefits, but good causes too,” Knight added.
Camelot’s current licence to run the National Lottery will expire in 2023. The next licence is expected to be awarded in October 2021 with a two-year transition period.
Evidence can be submitted by industry stakeholders into the inquiry until 10 September 2021.
Sazka Group is among the front runners for the new operating licence via its Allwyn subsidiary. The operator is set to face competition from Italian retail giant Sisal.