We grant licences for each game, or class of games, promoted as part of the National Lottery. Lotto, EuroMillions, Thunderball, LottoHotPicks, Set For Life, EuromillionsHotPicks, Scratchcards and Interactive Instant Win Games all have their own licences. The licence to run the National Lottery is called the Section 5 licence.
Whenever Camelot want to make changes to any of these games they must apply to us for approval.
Before we will approve any changes and allow amendments to the game licence or licence additional games we look at issues like:
- player protection
- projected returns to good causes
- protecting player funds
- impact on the National Lottery brand and intellectual property.
We check that Camelot complies with the terms of those licences.
Listed below is the history of changes to the EuromillionsHotPicks licence and our reasons for agreeing them.
Rationale for agreeing to EuroMillions HotPicks
In December 2016 Camelot sought approval to launch five new lotteries under the HotPicks brand using EuroMillions numbers. The main aspects of the game are as follows:
- The EuroMillions HotPicks game follows the established game mechanic of the existing Lotto HotPicks game.
- There are 5 different games for players to choose – ‘Pick 1’, ‘Pick 2’, ‘Pick 3’, ‘Pick 4’ and ‘Pick 5’. To win, a player needs to match all their chosen ‘Pick’ numbers with the main EuroMillions numbers drawn.
- EuroMillions HotPicks will cost £1.50 per line.
- The prizes are fixed (between £10 and £1,000,000 depending on numbers matched) and there are no rollovers.
- The prize values for EuroMillions HotPicks are as follows (subject to capping where in the unlikely event prizes far exceed sales, there will be a reduction in prizes):
- Pick 5, a winning prize of £1,000,000
- Pick 4, a winning prize of £30,000
- Pick 3, a winning prize of £1,500
- Pick 2, a winning prize of £100
- Pick 1, a winning prize of £10.
Propriety (the game is fit and proper)
As Camelot has a strong track record of running similar lottery games, and the proposal is to make changes to a game already available, we were content that:
- the game would be a legal lottery
- it would not damage the National Lottery brand
- there was no additional risk of fraud.
Protecting the interests of players
Having considered Camelot’s proposal we were content that:
- Camelot is capable of explaining to players how EuroMillions HotPicks works
- the launch of EuroMillions HotPicks would not lead to people playing excessively
- Camelot is capable in explaining to players the percentage of ticket sales will be paid out in prizes.
Returns to good causes
Looking at Camelot’s research we believe that the introduction of EuroMillions HotPicks will lead to more money going to good causes.
Based on information provided by Camelot, our own consideration and taking into account our statutory duties, we agreed to the launch of EuroMillions HotPicks.
Rationale for agreeing Condition 23 Licence Investment Proposal: Additional EuroMillions HotPicks Marketing
In March 2017, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission with a Notice of Investment Opportunity (the Proposal) in accordance with the provision of licence condition 23 of the Third Licence (the Licence) with was granted to Camelot on 1 February 2009.
The Proposal requested an investment to support the launch of EuroMillions HotPicks and the launch of an additional Tuesday draw of Thunderball of up to £6.7m for marketing support (£4.1m for EuroMillions HotPicks and £2.6m for Thunderball Tuesday), to be shared between Camelot and good causes.
Decisions and reasons
The Commission completed an evaluation process which considered the methodology and monitoring processes detailed in the Proposal against our statutory duties. The Commission are satisfied that no issues were identified in relation to propriety and player protection.
Given our two primary duties were satisfied, the Commission considered the benefits to good causes.
The Proposal stands to benefit good causes considerably over the course of the investment and it is envisaged the benefits to continue for the duration of the current licence to operate the National Lottery awarded to Camelot and which runs to January 2023.
The Commission has decided to accept the Proposal as we are satisfied that under condition 23 of the Licence:
- It will secure an increase in the net proceeds of the National Lottery
- It will continue to ensure that the National Lottery is run will all due propriety and the interests of every participant in the National Lottery are protected.
The Commission will review the investment and can amend the amount or cease to invest entirely at any point if it has concerns with its performance.