National Lottery licence
Request
It appears that all we've been told about why Allwyn got this status, that then got it the National Lottery licence, is the statement from the Commission that it was "content that all applicants are fit and proper to operate the national lottery."
- Given that "all applicants" were fit and proper, why then Allwyn rather than any of the others or why Allwyn over Camelot?
- Please disclose the methodology or reasoning behind the Commission's decision.
- What did Allwyn promise to do differently to Camelot?
- What was it that made its application preferable over that of the other applicants or preferable over Camelot?
- What contributions such as those from good causes did Camelot offer in its final application?
- How did the Commission judge the credibility of claims made by the various applicants or by Allwyn and by Camelot?
Response
Thank you for your request which has been processed under the Freedom of Information Act 2000 (FOIA).
In your email you have referred to the outcome of the 4th National Lottery Licence Competition (4NLC), and the Commission’s statement that all applicants were assessed as being “fit and proper” to operate the National Lottery, and made the following requests/queries:
- Given that "all applicants" were fit and proper, why then Allwyn rather than any of the others or why Allwyn over Camelot?
- Please disclose the methodology or reasoning behind the Commission's decision.
- What did Allwyn promise to do differently to Camelot?
- What was it that made its application preferable over that of the other applicants or preferable over Camelot?
- What contributions such as those from good causes did Camelot offer in its final application?
- How did the Commission judge the credibility of claims made by the various applicants or by Allwyn and by Camelot?
Firstly, it should be noted that the Freedom of Information Act 2000 (FOIA) gives individuals the right to request only recorded information held by public authorities, such as the Gambling Commission. It does not provide an avenue for individuals to gain views or opinions of public authorities or information not held at the time the request is made.
Questions 1, 3 and 4
Some elements of your request, specifically questions (1), (3) and (4), are not for specific recorded information (they are instead requests for a narrative from the Commission with regard to the outcome of the 4NLC) and, as such, we do not intend to provide a response to those questions in accordance with the FOIA.
However, in order to assist with your enquiries, we have provided below links to information previously disclosed in relation to the 4th National Lottery competition, that you may find it useful to view.
Questions 2 and 6
In question (2) you have asked for “the methodology... behind the Commission’s decision”. We have also interpreted question (6) to be a request for the methodology used by the Commission. As already indicated, below we have provided a link to a previous FOIA query relating to the 4NLC and the response provided by the Commission under the FOIA. This response included a copy of the 4NLC Invitation to Apply (ITA) which was issued at the commencement of the 4NLC to the five applicants who successfully passed the Selection Questionnaire stage of the competition and sets out in some detail (i) the objectives of competition, and (ii) the assessment methodology for the competition. The various applications were assessed using that methodology and, following those assessments/evaluations, Allwyn obtained the highest score and was therefore successful.
Co-operation Agreement (gamblingcommission.gov.uk).
For completeness, and having regard to your reference to the “fit and proper” test, please also find below a link to a further FOIA response provided by the Commission, which relates to material relevant to the “fit and proper” test applied by the Commission during the 4NLC.
Fit and proper test used for 4NL bidders (gamblingcommission.gov.uk).
We would also refer you to the publicly available information which can be found on the Commission’s website (see link here).
Question 5
In question (5) you have requested information provided by Camelot as part of its 4NLC application. Whilst we can confirm that the Commission holds this information, it is being withheld on the basis that it is exempt from disclosure. We set out our reasoning below.
For context, the Gambling Commission is the UK's independent statutory body responsible for awarding the licence to run the National Lottery and regulating its activities to ensure safe and fair play.
As part of the application process (as with any potential operator), the Commission entered dialogue with all applicants and relevant third parties; information collected during this process was used to ascertain if the statutory duties which underpin the regulation of the National Lottery would be met (ensuring that the interests of all players are protected, ensuring the Lottery is run with due propriety and that returns to good causes are maximised).
It is in the interests of all parties that matters can be discussed openly and frankly. Providing the requested information would reveal details about how the Commission conducts its regulatory work and revealing this information could seriously impact on the Commission’s ability to fulfil its statutory functions. We expect all licensees to work with us in an open and cooperative way and to inform us of anything we might need to be aware of in order to regulate effectively. We encourage all operators to be as thorough and as detailed as possible when communicating with us. As such, we are of the opinion that any information relating to the application submitted by Camelot is exempt from disclosure because sections 41 and 43 of the FOIA are engaged.
Confidentiality – Section 41
Section 41 provides an exemption under the FOIA from the right to access information where the information was provided to the public authority in confidence.
Information will be covered by Section 41 if:
i. it was obtained by the Commission from any other person (including another public authority),
ii. its disclosure would constitute a breach of confidence actionable by that or any other person.
When deciding if disclosure would constitute a breach of confidence, the Commission has to consider:
i. Whether the information has the quality of confidence.
ii. Whether it was imparted in circumstances imparting an obligation of confidence, and
iii. Whether disclosure would be an unauthorised use of the information to the detriment of the confider.
Section 41 is designed to give those who provide confidential information to public authorities, a degree of assurance that their confidences will continue to be respected, should the information fall within the scope of an FOIA request. The information included as part of Camelot’s application was submitted to the Commission on the understanding that it was being provided in confidence.
Having considered your request and the information falling within the scope of your request, the Commission has concluded that disclosure would constitute a breach of this confidence, and that Camelot would have an actionable claim for breach of confidence if this information was disclosed.
The Commission depends on the free flow of confidential information from stakeholders that contribute to its statutory functions.
Therefore, in light of the above, this information is captured under the exemption set out in section 41 of the FOIA and will not be disclosed.
Further to this, given the nature of the information contained within our communications with Camelot (and all other applicants) and consequently the impact to the regulatory work of the Commission, we are of the view that the information you have requested is also exempt under section 43 of the FOIA.
Commercial interests - Section 43
Section 43(2) exempts information whose disclosure would, or would be likely to, prejudice the commercial interests of any legal person (an individual, a company, the public authority itself or any other legal entity).
The information requested was generated through the application process to run the National Lottery. Disclosure of the requested information, at this time, could impact on the future commercial activity of Allwyn as the disclosure could reveal specific information about the organisation which could be used by competitors in the future for their own advantage.
The Commission therefore feels that the disclosure of this information ‘would be likely to prejudice’ the commercial interests of Camelot, the Commission and the National Lottery itself.
The Commission considers that the public interest in disclosing this information is outweighed by the wider public interest in protecting the commercial interests of Camelot. Our full public interest consideration is set out below.
Public interest test (Question 5)
The factors the Commission has considered when applying the public interest test have been detailed below and our view is that the public interest lies in favour of applying the exemption.
In favour of disclosure
The Gambling Commission is the statutory body responsible for awarding licences to run the National Lottery.
As such, there is a public interest in members of the public having confidence the Commission is being open and honest with the information it holds so that it can be held to account.
It is important that the public are assured that the Commission is carrying out its functions in ensuring that the successful applicant awarded the licence to run the National Lottery and therefore providing the facility to partake in the National Lottery to the public, have undergone the necessary assessments and will uphold the statutory obligations associated with the National Lottery Disclosure of the requested information could demonstrate to stakeholders and relevant parties how the Commission adequately assesses applicants. Furthermore, this disclosure may encourage stakeholders to work with us and contribute to this programme of work, increasing confidence in the Commission as a regulator and its ability to uphold the law.
In favour of maintaining the exemption
The Commission has taken steps throughout the running of the 4th National Lottery competition to publish information ensuring the transparency and accountability of the process. Specific detail of correspondence, between individual applicants to the Competition does not contribute to the overall understanding of the National Lottery.
Further to this, disclosure of this information could potentially compromise the integrity of the implementation and security of the new National Lottery licence. The Commission have a statutory duty to maximise returns to good causes.
Consequently, the weaker the competition the greater the risk that we do not meet that statutory duty. Fulfilling your request would be likely to prejudice the ability of the Commission to obtain the best outcome for good causes.
We consider that disclosing the information could discourage licensees from freely providing information to the Commission in future, which would likely prejudice the Commission’s ability to monitor and regulate the National Lottery as well as the gambling industry.
Weighing the balance
Whilst the Commission aims to be open and transparent, there is a need to preserve the confidentiality of information submitted on that basis and to be mindful of the commercial sensitivities of information that is held.
Having weighed these issues, the Commission is of the view that the public interest is best served through maintaining this exemption. There is very little that providing this information would do in terms of the public interest whilst disclosure would be likely to impact on the commercial interests of Camelot.
Review of the decision
If you are unhappy with the service you have received in relation to your Freedom of Information request you are entitled to an internal review of our decision. You should write to FOI Team, Gambling Commission, 4th floor, Victoria Square House, Victoria Square, Birmingham, B2 4BP or by reply to this email.
Please note, internal review requests should be made within 40 working days of the initial response. Requests made outside this timeframe will not be processed.
If you are not content with the outcome of our review, you may then apply directly to the Information Commissioner (ICO) for a decision. Generally, the ICO cannot make a decision unless you have already exhausted the review procedure provided by the Gambling Commission.
The ICO can be contacted at: The Information Commissioner’s Office (opens in a new tab), Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF.
Information Management Team
Gambling Commission
Victoria Square House
Victoria Square
Birmingham B2 4BP