Key policy areas
The following is a summary of those policy themes:
Protecting the National Lottery asset
- propriety
- branding.
We will ensure the operator is fit and proper, and that the National Lottery continues to be run with due propriety.
Our checks will ensure the operator observes high standards of corporate governance, including the way it manages staff, contractors and its relationships with shareholders. We will ensure that the National Lottery is financially resilient and run with integrity, protecting its reputation and brand value.
Brand is key to generating participation and therefore returns to good causes. The Gambling Commission owns the National Lottery brand and associated intellectual property and licenses the operator to use it. We will ensure that the National Lottery remains distinctive and instantly recognisable by requiring the operator to use the brand only in relation to National Lottery products.
We will ensure the operator innovates and collaborates with funding distributors to improve the public’s understanding of the link between playing the National Lottery and good causes.
Protecting and engaging players
- player protection
- National Lottery portfolio of games
- channels of sale.
We want the National Lottery to be the safest of its kind in the world. Bidders must demonstrate a high standard of player protection.
We are setting outcomes-focused licence conditions, for instance to prevent underage and excessive play, to ensure that players understand the games and conditions of play, and to deal effectively with complaints.
We are setting requirements in the licence where we have identified a specific need to protect players.
We will expect the licensee to contribute to research, prevention and treatment.
For games portfolio and channels of sale, we want to allow the operator of the next licence freedom to develop the National Lottery in line with maximising returns to good causes. We will streamline the process for games approval to allow greater flexibility and improved time-to-market. We will safeguard key features of the National Lottery, for example, by ensuring that draw-based games remain at its core.
Incentivising and monitoring the operator's performance
- number of licences
- duration of the fourth licence
- retention structure
- monitoring performance.
Following feedback from the market, it has been decided that the fourth licence should be awarded to a single licensee as that is considered the best way to serve the National Lottery and returns to good causes.
We have analysed incentive properties, past performance and overseas comparisons to assess licence duration. A licence of up to ten-years will allow time for investment while maintaining competitive discipline.
The retention structure determines the proportion of revenue from sales which goes to good causes, and how much is retained by the operator. Compared with current arrangements, the new structure will align the operator’s incentives across the portfolio more closely with returns to good causes.
We are developing a targeted and proportionate approach to monitoring operator performance during the fourth licence. This will involve a broad set of tools and safeguards including earned autonomy, performance metrics, a stronger role for operator assurance, and clear remedies for under performance.
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Last updated: 25 August 2021
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