National Lottery Organisers Could Face Regulatory Action

February 2024 saw  Allwyn assume control of running the UK National Lottery.  Now the UK Gambling Commission (UKGC) are reportedly considering taking regulatory action against them.

The reports state that the UKGC are concerned that Allwyn have failed to meet certain contractual milestones since taking over.

Delays

One concern is that there have been delays to digital upgrades that Allwyn promised to make. Their pledge to reduce the price of tickets for the Lotto draw to £1 from £2 has also not materialised.

The UKGC has not officially commented on the situation with Allwyn. Comments will only be made after a case has been completed. They regulate the UK gambling industry and possible actions they could take are formal warnings or the issuing of a financial penalty. This has been the case with several other licensees such as online sportsbooks.

Allwyn has made a reply to talk of possible action being taken against them. The National Lottery organisers have said they are committed to both upgrading and modernising the system they inherited. Their plan is to spend over £350 million on improvements.

The plan is that this will “help restore the magic to the National Lottery.”  The delay in implementing new digital upgrades has been because it is a complex task and requires “robust testing.” They added that the “transformation” will be completed “as soon as possible.”

A recent corporate filing said that there had been a “demanding” timetable since taking over the National Lottery. There has also been some  criticism over the length of time it takes for some lottery wins to be paid out.

Good causes

A report in The Times newspaper also mentioned criticism of how much money the National Lottery raises for good causes. Allwyn says that this is an area “that has been a success” and they will do all they can to “protect returns.”

The first year of operating saw £1.6 billion raised for good causes. Their aim is to double the amount raised each week for good causes to £60 million by the end of their licence.

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