The current National Lottery licence
The Section 5 licence requires Camelot (opens in a new tab) to submit information and policies to us for approval.
View and download the Third National Lottery Licence (PDF).
Additional to the Section 5 licence, we also grant licences for each game, or class of games, promoted as part of the National Lottery, these include:
- Lotto
- EuroMillions
- Thunderball
- LottoHotPicks
- EuromillionsHotPicks
- Set For Life
- Scratchcards
- Interactive Instant Win Games.
Information about each game licence is available in the National Lottery games and licences guide.
Camelot
We awarded Camelot a ten year licence to run the National Lottery, starting in 2009. In March 2012 this was extended by four years.
Over this 14 year period we will amend our regulatory regime where appropriate, including the terms of the licence, to do the following:
- cut bureaucracy
- give Camelot more freedom
- better protect Lottery players and the money they raise for good causes.
The Section 5 licence requires Camelot to submit information and policies to us for approval.
You can view and download these decisions in the Third National Lottery Control Sheet (PDF) document.
Definition of terms for Section 5 licence decisions
Approvals
Some provisions of the licence require Camelot to submit information or issues to us for approval. For example, their Strategy to prevent underage play.
The licence generally requires Camelot to seek our approval if the issue might have an impact on the National Lottery that we need to understand.
Consent
Similar to the process for approval, we agree to allow Camelot to pursue a course of action.
Variation
We make a permanent change to a licence provision. Some licence provisions can only be changed with Camelot’s consent. In other cases we can impose a variation.
Reasons for making a variation include:
- a change in circumstances which means the licence doesn’t regulate Camelot as it should
- there is a lack of clarity about what is required
- if Camelot acts in a way we feel is inappropriate and which we wish to regulate in future.
Waiver
We excuse Camelot from its obligation to comply with a licence requirement in one particular set of circumstances.
For example, Camelot has to have a retailer in every postcode district that has more than 2000 residents. Camelot is unable to do so if there are very few retailers in that district and those that are there refuse to take a National Lottery terminal. In such cases we can waive the licence obligation insofar as it applies to that area.
Disapplications
We aim to remove regulatory burdens where Camelot has a strong proven track record. A disapplication means that we have removed one of the obligations on Camelot from the licence.
For example, it is no longer required to display U16 notices in shops. It’s not a variation because we can, if we consider it appropriate, reinstate the provision as it was originally set out in the licence.
Approvals, consents, variations and waivers also apply in relation to the licences to individual National Lottery games.
To date there have been no disapplication of individual game licences.
Licence decisions
We publish the information and policies Camelot submit to us for approval, along with our decisions.
2023 Licence decisions
March 2023 - Decision notice for the change of corporate control of Camelot UK Lotteries Limited (CUKL)
Summary
In November 2022, the Gambling Commission received a proposal to change the corporate control of CUKL from the Ontario Teachers’ Pension Plan to the Allwyn Group.
Appropriate processes to consider the proposal were already in place within the National Lottery regulatory framework, with the Third Section 5 National Lottery Licence ensuring that such transactions are subject to regulatory approval.
A thorough and robust assessment was therefore completed in response to the proposal. This focussed on both the formal requirements of the Licence and broader matters in respect of the Gambling Commission’s statutory duties. In particular, the assessment focussed upon testing whether, if the proposal was approved:
- all entities and individuals associated with CUKL would continue to be of a ‘fit and proper’ nature
- appropriate leadership and governance, including at Board-level, would remain in place
- CUKL would continue to be suitably robust from a financial perspective
- CUKL would continue to be compliant with the wider conditions of the Licence.
At the conclusion of its assessment, the Gambling Commission was suitably assured in respect of each issue noted above and was also satisfied that no material risks would be directly created as a result of approving the proposal.
In January 2023, the Gambling Commission’s Board therefore granted the necessary upfront consents under Conditions 12.1(c) and 12.4(a)(ii) of the Licence, which enabled the transaction to proceed to completion. These upfront consents were then supported by a number of additional consents and waivers which were granted by officials, in line with the delegation of functions under the National Lottery regulatory framework.
The transaction subsequently completed on 5 February 2023, at which point the change of corporate control of CUKL took effect.
2022 Licence decisions
October 2022 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery
Summary
In June 2022, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2022/23 financial year, to support Lotto, EuroMillions, Set for Life and the National Lottery brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety
- ensure the interests of every participant in a Lottery are protected
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, a modification was made to the original Proposal prior to a decision being made. This resulted in:
- a reduced total investment for National Lottery marketing and enabling spend of £85.6 million (reduced from £95.7 million). £76.7 million of this is NLDF investment.
- Following the conclusion of this evaluation process, in September 2022 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety
- continue to ensure the interests of every participant in the National Lottery are protected
- contribute positively towards the net proceeds of the National Lottery.
- The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
- The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the Proposal regarding player interests are limited.
The Commission notes that as a result of this decision, consumers are likely to continue to see a higher level of advertising than would be the case without investment. However, given the investment is focused on the National Lottery Brand and draw-based games (which are low risk gambling products), and the presence of a range of other player protection controls, the Commission is satisfied that there are sufficient safeguards in place to mitigate any potential risk.
The Commission will continue to monitor and challenge Camelot on its ongoing delivery of high standards in terms of player protection measures. Camelot is required to be compliant with all the advertising codes of practice issued by the Advertising Standards Agency (CAP/BCAP) and therefore its lottery advertising will not ’be likely to be of a strong appeal to children through the association of youth culture’ or to young people or vulnerable adults. We are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2022/23, along with having a positive impact on the long-term brand health of the National Lottery.
Decision
- Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
2021 Licence decisions
- December 2021 - Notice of variations – Third Licence Extension
- November 2021 - Decision notice for Condition 23 Licence Investment Proposal: Strategic Marketing Investment for the National Lottery
- March 2021 - Notice of variations – Third Licence Extension
- March 2021 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery
December 2021 - Notice of variations - Third Licence Extension
Summary
In certain scenarios, Condition 23.9 of the Third Section 5 Licence allows the Gambling Commission, in its absolute discretion, to extend the duration of this Licence for a period of six months. A maximum of two such extensions are permitted.
One such scenario relates to the Competition process, i.e. where the Competition takes longer than was originally envisaged. In May 2020, having considered all advice available and the feedback we had received from potential applicants, the Commission decided to delay the launch of the Competition by three months. As a result, the Commission decided to enact the first six-month extension to the Third Licence, which was subsequently delivered in March 2021.
In August 2021, following representations from applicants and our experience gained from reviewing Phase One submissions, the Commission then decided to extend the timeline for Phase Two of the Competition process. To facilitate these further changes to the timetable, and to ensure a smooth transition between this Licence period and the next, the Commission decided to enact the second six-month extension to the Third Licence.
The current operator, Camelot, was notified of this extension in line with the requirements set out within Condition 23.9. Since that point, the Commission and the current operator have been working to agree the associated variations to the Third Section 5 Licence and Section 6 Scratchcards Class Licence.
These variations were limited in nature, as they primarily focussed on reflecting the amended Licence Expiry date of 31 January 2024 throughout the updated Licences.
The updated Licences, reflecting the second six-month extension to the Third Licence period, were subsequently published on 10 December 2021.
November 2021 - Decision notice for Condition 23 Licence Investment Proposal: Strategic Marketing Investment for the National Lottery
Summary
On 17 May 2021, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an incremental investment from the National Lottery Distribution Fund (NLDF) for the 2021/22 financial year, to support marketing of EuroMillions, Set for Life and the National Lottery brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a Proposal, propose modifications to a Proposal, or reject a Proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety
- ensure the interests of every participant in a Lottery are protected
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced total investment for National Lottery marketing and enabling spend of £14.0m (reduced from £22.8m). £13.42m of this is NLDF investment
- Camelot revising the proposed performance metrics to ensure the Commission can effectively measure the success of the investment
- Camelot raising the 2021/22 MME ‘floor’ by £0.58m in line with forecast incremental sales generated from the strategic marketing investment for 2021/22.
- Following the conclusion of this evaluation process, in November 2021 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the Proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety
- the interests of every participant in the National Lottery are protected
- secure an increase in the net proceeds of the National Lottery.
- The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
- The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the Proposal regarding player interests are limited.
The Commission notes that consumers are likely to continue to see a higher level of advertising than would be the case without investment as a result of this decision but are satisfied that as the investment is focused on the National Lottery Brand and draw-based Games (which are low risk gambling products), along with the other ongoing work relating to player protection, there are sufficient safeguards in place to mitigate any potential risk.
The Commission will continue to monitor and challenge Camelot on its ongoing delivery of high standards in terms of player protection measures. Camelot is also required to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment will be positive in all plausible scenarios.
The Proposal is expected to deliver additional returns during 2021/22, along with having a positive impact on the long-term brand health of the National Lottery.
Decision
- Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the Proposal was approved.
March 2021 - Notice of variations – Third Licence Extension
Summary
In certain scenarios, Condition 23.9 of the Third Section 5 Licence allows the Gambling Commission, in its absolute discretion, to extend the duration of this Licence for a period of six months. A maximum of two such extensions are permitted.
One such scenario relates to the Competition process, i.e. where the Competition takes longer than was originally envisaged. In May 2020, having considered all advice available and the feedback we had received from potential applicants, the Commission decided to delay the launch of the Competition by three months.
As a result, and specifically to ensure a smooth transition between this Licence period and the next, the Commission decided to enact the first six-month extension to the Third Licence.
The current operator, Camelot, was notified of this extension in line with the requirements set out within Condition 23.9. Since that point, the Commission and the current operator have been working to agree the associated variations to the Third Section 5 Licence and Section 6 Scratchcards Class Licence.
These variations were limited in nature, as they primarily focussed on reflecting the amended Licence Expiry date of 31 July 2023 throughout the updated Licences.
The updated Licences, reflecting the six-month extension to the Third Licence period, were subsequently published on 31 March 2021.
March 2021 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery
Summary
In November 2020, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment from the National Lottery Distribution Fund (NLDF) for the 2021/22 financial year, to support marketing of Lotto, EuroMillions, Set for Life and the National Lottery brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal.
That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety
- ensure the interests of every participant in a Lottery are protected
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made.
These included:
- a reduced total investment for National Lottery marketing and enabling spend of £69.4m (reduced from £91.5m). £65.3m of this is NLDF investment
- Camelot confirming its commitment to further investment in its retail estate
- Camelot enhancing the proposed performance metrics to ensure the Commission can effectively measure the success of the investment
- Camelot maintaining its investment in the ITV results show.
- Following the conclusion of this evaluation process, in March 2021 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety
- the interests of every participant in the National Lottery are protected
- secure an increase in the net proceeds of the National Lottery.
- The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
- The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the proposal regarding player interests are limited.
The Commission notes that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. Camelot is also required to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2021/22, with Camelot’s forecasted benefits representing a prudent approach with potential for further upside.
Decision
- Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
2020 Licence decisions
- July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery Brand
- July 2020 - Rationale for agreeing Condition 23 Licence Investment Proposal: Marketing Investment in Set for Life
- July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for Lotto and EuroMillions
July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery Brand
Summary
In January 2020, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year, to support the National Lottery Brand. The investment would support the long-term health of the National Lottery by driving positivity, loyalty and an emotional connection to the brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- ensure the interests of every participant in a Lottery are protected; and
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced NLDF investment for Brand marketing and enabling spend of £25.0m (reduced from £31.7m)
- Camelot to include additional metrics to ensure the Commission can effectively measure the performance of the investment
- Camelot to maintain its investment in the ITV results show.
Following the conclusion of this evaluation process, in July 2020 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the Proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- secure an increase in the net proceeds of the National Lottery.
The detailed assessment undertaken by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis. The Commission has a high level of assurance the investment will deliver incremental benefits to good causes particularly in the long-term.
Propriety
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The Commission considered the potential impacts of the Proposal regarding player interests are limited.
It was noted that consumers were likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. The Commission expects Camelot to continue to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure good cause returns on the investment are positive in all plausible scenarios.
Investment in the Brand provides longer-term benefits to the National Lottery, as it should improve positivity and enhance the link between play and good causes.
Without investment into the brand, player sentiment and participation are likely to continue to decline. Consequently, this could impact on good causes for the remainder of the current Licence.
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the Proposal was approved by the Commission.
July 2020 - Rationale for agreeing Condition 23 Licence Investment Proposal: Marketing Investment in Set for Life
Summary
In February 2020, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year, to support Set for Life. The investment aims to maintain the success of the Set for Life game which launched in March 2019.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- ensure the interests of every participant in a Lottery are protected; and
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding the Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- A reduced NLDF investment for Set for Life marketing and enabling spend of £5.9m (reduced from £8.9m)
- Camelot to include additional metrics to ensure the Commission can effectively measure the performance of the investment.
Following the conclusion of this evaluation process, in July 2020 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- secure an increase in the net proceeds of the National Lottery.
The detailed assessment completed by Officials of the proposal, and the findings of the Commission’s external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes particularly in the long-term.
Propriety
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interest
The potential impacts of the proposal regarding player interests are limited. We do note however, that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. The Commission expects Camelot to continue to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2020/21, with Camelot’s forecasted benefits representing a prudent approach with potential for further upside.
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for Lotto and EuroMillions
Summary
In November 2019, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year, to support Lotto and EuroMillions. The investment would primarily support the marketing of rollovers and events.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- ensure the interests of every participant in a Lottery are protected; and
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced NLDF investment for Lotto and EuroMillions marketing and enabling spend of £35.45m (reduced from £45.5m)
- Camelot to provide additional operational and performance targets in relation to its retail estate
- Camelot to increase its investment in Capex spend to £6.5m (£4.2m incremental) for 2020/21.
Following the conclusion of this evaluation process, in July 2020 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- secure an increase in the net proceeds of the National Lottery.
The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the proposal regarding player interests are limited.
The Commission notes that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. The Commission expects Camelot to continue to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2020/21, with Camelot’s forecasted benefits representing a prudent approach with potential for further upside.
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
2019 Licence decisions
- August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Brand Marketing Investment
- August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Retailers and Self-Checkout Investment
August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Brand Marketing Investment
Summary
On 10 June 2019, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a modified Licensee Notice of Investment Opportunity (the proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2019/20 financial year, to support the National Lottery brand. The investment would support the long-term health of the National Lottery by driving positivity, loyalty and an emotional connection to the brand. Camelot is also investing in capital expenditure as part of the overall proposal.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to secure that:
- The National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- The interests of every participant in a lottery that forms part of the National Lottery are protected; and
- Subject to the above two provisos, that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this proposal has been both robust and extensive, utilising the support of external experts where necessary.
As a result of this process, and significant engagement with Camelot, modifications were made to the original proposal prior to a decision being made. These included:
- A reduced NLDF investment for brand marketing and enabling spend of £12.1m (reduced from £27.2m)
- Camelot to contribute the remaining funding for the brand investment to ensure the optimum £36.0m identified in Camelot’s proposal is committed to brand spend
Following the conclusion of this evaluation process, the Commission approved the proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- Continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- Secure an increase in the net proceeds of the National Lottery
Decision and rationale
The detailed assessment completed by Officials of the proposal, and the findings of the Commission’s external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to Good Causes particularly in the long-term.
Propriety
The Commission is satisfied the proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the proposal regarding player interests are limited. We do note however, that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progression in terms of player protection measures. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to Good Causes
Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that Good Cause returns on the investment are positive in all plausible scenarios.
Investment in the brand provides longer-term benefits to the National Lottery, as it should improve positivity and enhance the link between play and good causes.
Without investment into the brand, player sentiment and participation are likely to continue to decline. Consequently, this could impact on the appeal of bidding for the fourth licence competition which in turn may impact on good causes for the fourth licence period
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Retailers and Self-Checkout Investment
Summary
On 7 February 2019, Camelot served the Gambling Commission with a modified Licensee Notice of Investment Opportunity (the proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The proposal requested investment from Good Causes in retail infrastructure i.e. expansion of the National Lottery into discounters, and introduction of the National lottery at self-checkout in major supermarkets.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. The decision is subject to the Commission’s overriding statutory duties to secure that:
- the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- the interests of every participant in a lottery that forms part of the National Lottery are protected; and
- Subject to the provisos in (a) and (b), that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this proposal has been both robust and extensive, utilising the support of external experts where necessary.
Following the conclusion of this evaluation process, modifications were made to the original proposal which included:
- Camelot to provide an additional £1.0m of incremental capital expenditure across discounters and self-checkout.
- a reduction in the investment from good causes, from £14.1m to £13.1m
- wording to allow either party to cease the investment should it not provide adequate returns.
The proposal (as revised and improved), satisfied the Commission in that the proposal is likely to:
- Secure a significant increase in the net proceeds of the National Lottery; and
- Continue to ensure that the National Lottery is run with all due propriety and the interests of every participant in the National Lottery are protected.
Decision and rationale
The detailed assessment completed by Officials, and the findings of external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver significant incremental benefits to Good Causes.
The rationale behind this proposal is to evolve the retail offering in line with the changes in the retail landscape and to ensure that the National Lottery is present both where and how customers are shopping.
Propriety
The Commission is satisfied that the proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impact regarding player interests has been considered fully during Officials’ assessment of the proposal, including the impact on underage and problem play. No risks have been identified that cause Officials to conclude that the proposal is likely to have an adverse impact on our statutory duty to protect the interests of players.
Officials’ view is that this proposal would be beneficial to consumers by making the purchase of National Lottery tickets more convenient and in line with shopping trends.
Returns to Good Causes
The overall investment is highly positive for Good Causes. Camelot is contributing 13% of the overall investment with Good Causes forecast to receive around 97% of the gross benefit.
Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that Good Cause returns on the investment are positive in all plausible scenarios.
The conclusion from this work is therefore that the proposal is likely to deliver substantial additional Returns to Good Causes till the end of the current licence period.
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Updated Third National Lottery Licence and Control Sheet for February 2023 and added 2023 Decision notice.
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Summary
In November 2022, the Gambling Commission received a proposal to change the corporate control of CUKL from the Ontario Teachers’ Pension Plan to the Allwyn Group.
Appropriate processes to consider the proposal were already in place within the National Lottery regulatory framework, with the Third Section 5 National Lottery Licence ensuring that such transactions are subject to regulatory approval.
A thorough and robust assessment was therefore completed in response to the proposal. This focussed on both the formal requirements of the Licence and broader matters in respect of the Gambling Commission’s statutory duties. In particular, the assessment focussed upon testing whether, if the proposal was approved:
- all entities and individuals associated with CUKL would continue to be of a ‘fit and proper’ nature
- appropriate leadership and governance, including at Board-level, would remain in place
- CUKL would continue to be suitably robust from a financial perspective
- CUKL would continue to be compliant with the wider conditions of the Licence.
At the conclusion of its assessment, the Gambling Commission was suitably assured in respect of each issue noted above and was also satisfied that no material risks would be directly created as a result of approving the proposal.
In January 2023, the Gambling Commission’s Board therefore granted the necessary upfront consents under Conditions 12.1(c) and 12.4(a)(ii) of the Licence, which enabled the transaction to proceed to completion. These upfront consents were then supported by a number of additional consents and waivers which were granted by officials, in line with the delegation of functions under the National Lottery regulatory framework.
The transaction subsequently completed on 5 February 2023, at which point the change of corporate control of CUKL took effect.
2022 Licence decisions
October 2022 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery
Summary
In June 2022, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2022/23 financial year, to support Lotto, EuroMillions, Set for Life and the National Lottery brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety
- ensure the interests of every participant in a Lottery are protected
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, a modification was made to the original Proposal prior to a decision being made. This resulted in:
- a reduced total investment for National Lottery marketing and enabling spend of £85.6 million (reduced from £95.7 million). £76.7 million of this is NLDF investment.
- Following the conclusion of this evaluation process, in September 2022 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety
- continue to ensure the interests of every participant in the National Lottery are protected
- contribute positively towards the net proceeds of the National Lottery.
- The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
- The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the Proposal regarding player interests are limited.
The Commission notes that as a result of this decision, consumers are likely to continue to see a higher level of advertising than would be the case without investment. However, given the investment is focused on the National Lottery Brand and draw-based games (which are low risk gambling products), and the presence of a range of other player protection controls, the Commission is satisfied that there are sufficient safeguards in place to mitigate any potential risk.
The Commission will continue to monitor and challenge Camelot on its ongoing delivery of high standards in terms of player protection measures. Camelot is required to be compliant with all the advertising codes of practice issued by the Advertising Standards Agency (CAP/BCAP) and therefore its lottery advertising will not ’be likely to be of a strong appeal to children through the association of youth culture’ or to young people or vulnerable adults. We are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2022/23, along with having a positive impact on the long-term brand health of the National Lottery.
Decision
- Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
2021 Licence decisions
- December 2021 - Notice of variations – Third Licence Extension
- November 2021 - Decision notice for Condition 23 Licence Investment Proposal: Strategic Marketing Investment for the National Lottery
- March 2021 - Notice of variations – Third Licence Extension
- March 2021 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery
December 2021 - Notice of variations - Third Licence Extension
Summary
In certain scenarios, Condition 23.9 of the Third Section 5 Licence allows the Gambling Commission, in its absolute discretion, to extend the duration of this Licence for a period of six months. A maximum of two such extensions are permitted.
One such scenario relates to the Competition process, i.e. where the Competition takes longer than was originally envisaged. In May 2020, having considered all advice available and the feedback we had received from potential applicants, the Commission decided to delay the launch of the Competition by three months. As a result, the Commission decided to enact the first six-month extension to the Third Licence, which was subsequently delivered in March 2021.
In August 2021, following representations from applicants and our experience gained from reviewing Phase One submissions, the Commission then decided to extend the timeline for Phase Two of the Competition process. To facilitate these further changes to the timetable, and to ensure a smooth transition between this Licence period and the next, the Commission decided to enact the second six-month extension to the Third Licence.
The current operator, Camelot, was notified of this extension in line with the requirements set out within Condition 23.9. Since that point, the Commission and the current operator have been working to agree the associated variations to the Third Section 5 Licence and Section 6 Scratchcards Class Licence.
These variations were limited in nature, as they primarily focussed on reflecting the amended Licence Expiry date of 31 January 2024 throughout the updated Licences.
The updated Licences, reflecting the second six-month extension to the Third Licence period, were subsequently published on 10 December 2021.
November 2021 - Decision notice for Condition 23 Licence Investment Proposal: Strategic Marketing Investment for the National Lottery
Summary
On 17 May 2021, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an incremental investment from the National Lottery Distribution Fund (NLDF) for the 2021/22 financial year, to support marketing of EuroMillions, Set for Life and the National Lottery brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a Proposal, propose modifications to a Proposal, or reject a Proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety
- ensure the interests of every participant in a Lottery are protected
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced total investment for National Lottery marketing and enabling spend of £14.0m (reduced from £22.8m). £13.42m of this is NLDF investment
- Camelot revising the proposed performance metrics to ensure the Commission can effectively measure the success of the investment
- Camelot raising the 2021/22 MME ‘floor’ by £0.58m in line with forecast incremental sales generated from the strategic marketing investment for 2021/22.
- Following the conclusion of this evaluation process, in November 2021 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the Proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety
- the interests of every participant in the National Lottery are protected
- secure an increase in the net proceeds of the National Lottery.
- The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
- The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the Proposal regarding player interests are limited.
The Commission notes that consumers are likely to continue to see a higher level of advertising than would be the case without investment as a result of this decision but are satisfied that as the investment is focused on the National Lottery Brand and draw-based Games (which are low risk gambling products), along with the other ongoing work relating to player protection, there are sufficient safeguards in place to mitigate any potential risk.
The Commission will continue to monitor and challenge Camelot on its ongoing delivery of high standards in terms of player protection measures. Camelot is also required to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment will be positive in all plausible scenarios.
The Proposal is expected to deliver additional returns during 2021/22, along with having a positive impact on the long-term brand health of the National Lottery.
Decision
- Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the Proposal was approved.
March 2021 - Notice of variations – Third Licence Extension
Summary
In certain scenarios, Condition 23.9 of the Third Section 5 Licence allows the Gambling Commission, in its absolute discretion, to extend the duration of this Licence for a period of six months. A maximum of two such extensions are permitted.
One such scenario relates to the Competition process, i.e. where the Competition takes longer than was originally envisaged. In May 2020, having considered all advice available and the feedback we had received from potential applicants, the Commission decided to delay the launch of the Competition by three months.
As a result, and specifically to ensure a smooth transition between this Licence period and the next, the Commission decided to enact the first six-month extension to the Third Licence.
The current operator, Camelot, was notified of this extension in line with the requirements set out within Condition 23.9. Since that point, the Commission and the current operator have been working to agree the associated variations to the Third Section 5 Licence and Section 6 Scratchcards Class Licence.
These variations were limited in nature, as they primarily focussed on reflecting the amended Licence Expiry date of 31 July 2023 throughout the updated Licences.
The updated Licences, reflecting the six-month extension to the Third Licence period, were subsequently published on 31 March 2021.
March 2021 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery
Summary
In November 2020, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment from the National Lottery Distribution Fund (NLDF) for the 2021/22 financial year, to support marketing of Lotto, EuroMillions, Set for Life and the National Lottery brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal.
That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety
- ensure the interests of every participant in a Lottery are protected
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made.
These included:
- a reduced total investment for National Lottery marketing and enabling spend of £69.4m (reduced from £91.5m). £65.3m of this is NLDF investment
- Camelot confirming its commitment to further investment in its retail estate
- Camelot enhancing the proposed performance metrics to ensure the Commission can effectively measure the success of the investment
- Camelot maintaining its investment in the ITV results show.
- Following the conclusion of this evaluation process, in March 2021 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety
- the interests of every participant in the National Lottery are protected
- secure an increase in the net proceeds of the National Lottery.
- The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
- The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the proposal regarding player interests are limited.
The Commission notes that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. Camelot is also required to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2021/22, with Camelot’s forecasted benefits representing a prudent approach with potential for further upside.
Decision
- Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
2020 Licence decisions
- July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery Brand
- July 2020 - Rationale for agreeing Condition 23 Licence Investment Proposal: Marketing Investment in Set for Life
- July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for Lotto and EuroMillions
July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery Brand
Summary
In January 2020, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year, to support the National Lottery Brand. The investment would support the long-term health of the National Lottery by driving positivity, loyalty and an emotional connection to the brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- ensure the interests of every participant in a Lottery are protected; and
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced NLDF investment for Brand marketing and enabling spend of £25.0m (reduced from £31.7m)
- Camelot to include additional metrics to ensure the Commission can effectively measure the performance of the investment
- Camelot to maintain its investment in the ITV results show.
Following the conclusion of this evaluation process, in July 2020 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the Proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- secure an increase in the net proceeds of the National Lottery.
The detailed assessment undertaken by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis. The Commission has a high level of assurance the investment will deliver incremental benefits to good causes particularly in the long-term.
Propriety
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The Commission considered the potential impacts of the Proposal regarding player interests are limited.
It was noted that consumers were likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. The Commission expects Camelot to continue to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure good cause returns on the investment are positive in all plausible scenarios.
Investment in the Brand provides longer-term benefits to the National Lottery, as it should improve positivity and enhance the link between play and good causes.
Without investment into the brand, player sentiment and participation are likely to continue to decline. Consequently, this could impact on good causes for the remainder of the current Licence.
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the Proposal was approved by the Commission.
July 2020 - Rationale for agreeing Condition 23 Licence Investment Proposal: Marketing Investment in Set for Life
Summary
In February 2020, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year, to support Set for Life. The investment aims to maintain the success of the Set for Life game which launched in March 2019.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- ensure the interests of every participant in a Lottery are protected; and
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding the Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- A reduced NLDF investment for Set for Life marketing and enabling spend of £5.9m (reduced from £8.9m)
- Camelot to include additional metrics to ensure the Commission can effectively measure the performance of the investment.
Following the conclusion of this evaluation process, in July 2020 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- secure an increase in the net proceeds of the National Lottery.
The detailed assessment completed by Officials of the proposal, and the findings of the Commission’s external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes particularly in the long-term.
Propriety
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interest
The potential impacts of the proposal regarding player interests are limited. We do note however, that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. The Commission expects Camelot to continue to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2020/21, with Camelot’s forecasted benefits representing a prudent approach with potential for further upside.
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for Lotto and EuroMillions
Summary
In November 2019, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year, to support Lotto and EuroMillions. The investment would primarily support the marketing of rollovers and events.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- ensure the interests of every participant in a Lottery are protected; and
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced NLDF investment for Lotto and EuroMillions marketing and enabling spend of £35.45m (reduced from £45.5m)
- Camelot to provide additional operational and performance targets in relation to its retail estate
- Camelot to increase its investment in Capex spend to £6.5m (£4.2m incremental) for 2020/21.
Following the conclusion of this evaluation process, in July 2020 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- secure an increase in the net proceeds of the National Lottery.
The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the proposal regarding player interests are limited.
The Commission notes that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. The Commission expects Camelot to continue to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2020/21, with Camelot’s forecasted benefits representing a prudent approach with potential for further upside.
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
2019 Licence decisions
- August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Brand Marketing Investment
- August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Retailers and Self-Checkout Investment
August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Brand Marketing Investment
Summary
On 10 June 2019, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a modified Licensee Notice of Investment Opportunity (the proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2019/20 financial year, to support the National Lottery brand. The investment would support the long-term health of the National Lottery by driving positivity, loyalty and an emotional connection to the brand. Camelot is also investing in capital expenditure as part of the overall proposal.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to secure that:
- The National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- The interests of every participant in a lottery that forms part of the National Lottery are protected; and
- Subject to the above two provisos, that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this proposal has been both robust and extensive, utilising the support of external experts where necessary.
As a result of this process, and significant engagement with Camelot, modifications were made to the original proposal prior to a decision being made. These included:
- A reduced NLDF investment for brand marketing and enabling spend of £12.1m (reduced from £27.2m)
- Camelot to contribute the remaining funding for the brand investment to ensure the optimum £36.0m identified in Camelot’s proposal is committed to brand spend
Following the conclusion of this evaluation process, the Commission approved the proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- Continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- Secure an increase in the net proceeds of the National Lottery
Decision and rationale
The detailed assessment completed by Officials of the proposal, and the findings of the Commission’s external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to Good Causes particularly in the long-term.
Propriety
The Commission is satisfied the proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the proposal regarding player interests are limited. We do note however, that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progression in terms of player protection measures. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to Good Causes
Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that Good Cause returns on the investment are positive in all plausible scenarios.
Investment in the brand provides longer-term benefits to the National Lottery, as it should improve positivity and enhance the link between play and good causes.
Without investment into the brand, player sentiment and participation are likely to continue to decline. Consequently, this could impact on the appeal of bidding for the fourth licence competition which in turn may impact on good causes for the fourth licence period
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Retailers and Self-Checkout Investment
Summary
On 7 February 2019, Camelot served the Gambling Commission with a modified Licensee Notice of Investment Opportunity (the proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The proposal requested investment from Good Causes in retail infrastructure i.e. expansion of the National Lottery into discounters, and introduction of the National lottery at self-checkout in major supermarkets.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. The decision is subject to the Commission’s overriding statutory duties to secure that:
- the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- the interests of every participant in a lottery that forms part of the National Lottery are protected; and
- Subject to the provisos in (a) and (b), that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this proposal has been both robust and extensive, utilising the support of external experts where necessary.
Following the conclusion of this evaluation process, modifications were made to the original proposal which included:
- Camelot to provide an additional £1.0m of incremental capital expenditure across discounters and self-checkout.
- a reduction in the investment from good causes, from £14.1m to £13.1m
- wording to allow either party to cease the investment should it not provide adequate returns.
The proposal (as revised and improved), satisfied the Commission in that the proposal is likely to:
- Secure a significant increase in the net proceeds of the National Lottery; and
- Continue to ensure that the National Lottery is run with all due propriety and the interests of every participant in the National Lottery are protected.
Decision and rationale
The detailed assessment completed by Officials, and the findings of external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver significant incremental benefits to Good Causes.
The rationale behind this proposal is to evolve the retail offering in line with the changes in the retail landscape and to ensure that the National Lottery is present both where and how customers are shopping.
Propriety
The Commission is satisfied that the proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impact regarding player interests has been considered fully during Officials’ assessment of the proposal, including the impact on underage and problem play. No risks have been identified that cause Officials to conclude that the proposal is likely to have an adverse impact on our statutory duty to protect the interests of players.
Officials’ view is that this proposal would be beneficial to consumers by making the purchase of National Lottery tickets more convenient and in line with shopping trends.
Returns to Good Causes
The overall investment is highly positive for Good Causes. Camelot is contributing 13% of the overall investment with Good Causes forecast to receive around 97% of the gross benefit.
Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that Good Cause returns on the investment are positive in all plausible scenarios.
The conclusion from this work is therefore that the proposal is likely to deliver substantial additional Returns to Good Causes till the end of the current licence period.
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Updated Third National Lottery Licence and Control Sheet for February 2023 and added 2023 Decision notice.
Summary
In June 2022, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2022/23 financial year, to support Lotto, EuroMillions, Set for Life and the National Lottery brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety
- ensure the interests of every participant in a Lottery are protected
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, a modification was made to the original Proposal prior to a decision being made. This resulted in:
- a reduced total investment for National Lottery marketing and enabling spend of £85.6 million (reduced from £95.7 million). £76.7 million of this is NLDF investment.
- Following the conclusion of this evaluation process, in September 2022 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety
- continue to ensure the interests of every participant in the National Lottery are protected
- contribute positively towards the net proceeds of the National Lottery.
- The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
- The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the Proposal regarding player interests are limited.
The Commission notes that as a result of this decision, consumers are likely to continue to see a higher level of advertising than would be the case without investment. However, given the investment is focused on the National Lottery Brand and draw-based games (which are low risk gambling products), and the presence of a range of other player protection controls, the Commission is satisfied that there are sufficient safeguards in place to mitigate any potential risk.
The Commission will continue to monitor and challenge Camelot on its ongoing delivery of high standards in terms of player protection measures. Camelot is required to be compliant with all the advertising codes of practice issued by the Advertising Standards Agency (CAP/BCAP) and therefore its lottery advertising will not ’be likely to be of a strong appeal to children through the association of youth culture’ or to young people or vulnerable adults. We are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2022/23, along with having a positive impact on the long-term brand health of the National Lottery.
Decision
- Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
2021 Licence decisions
- December 2021 - Notice of variations – Third Licence Extension
- November 2021 - Decision notice for Condition 23 Licence Investment Proposal: Strategic Marketing Investment for the National Lottery
- March 2021 - Notice of variations – Third Licence Extension
- March 2021 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery
December 2021 - Notice of variations - Third Licence Extension
Summary
In certain scenarios, Condition 23.9 of the Third Section 5 Licence allows the Gambling Commission, in its absolute discretion, to extend the duration of this Licence for a period of six months. A maximum of two such extensions are permitted.
One such scenario relates to the Competition process, i.e. where the Competition takes longer than was originally envisaged. In May 2020, having considered all advice available and the feedback we had received from potential applicants, the Commission decided to delay the launch of the Competition by three months. As a result, the Commission decided to enact the first six-month extension to the Third Licence, which was subsequently delivered in March 2021.
In August 2021, following representations from applicants and our experience gained from reviewing Phase One submissions, the Commission then decided to extend the timeline for Phase Two of the Competition process. To facilitate these further changes to the timetable, and to ensure a smooth transition between this Licence period and the next, the Commission decided to enact the second six-month extension to the Third Licence.
The current operator, Camelot, was notified of this extension in line with the requirements set out within Condition 23.9. Since that point, the Commission and the current operator have been working to agree the associated variations to the Third Section 5 Licence and Section 6 Scratchcards Class Licence.
These variations were limited in nature, as they primarily focussed on reflecting the amended Licence Expiry date of 31 January 2024 throughout the updated Licences.
The updated Licences, reflecting the second six-month extension to the Third Licence period, were subsequently published on 10 December 2021.
November 2021 - Decision notice for Condition 23 Licence Investment Proposal: Strategic Marketing Investment for the National Lottery
Summary
On 17 May 2021, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an incremental investment from the National Lottery Distribution Fund (NLDF) for the 2021/22 financial year, to support marketing of EuroMillions, Set for Life and the National Lottery brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a Proposal, propose modifications to a Proposal, or reject a Proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety
- ensure the interests of every participant in a Lottery are protected
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced total investment for National Lottery marketing and enabling spend of £14.0m (reduced from £22.8m). £13.42m of this is NLDF investment
- Camelot revising the proposed performance metrics to ensure the Commission can effectively measure the success of the investment
- Camelot raising the 2021/22 MME ‘floor’ by £0.58m in line with forecast incremental sales generated from the strategic marketing investment for 2021/22.
- Following the conclusion of this evaluation process, in November 2021 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the Proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety
- the interests of every participant in the National Lottery are protected
- secure an increase in the net proceeds of the National Lottery.
- The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
- The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the Proposal regarding player interests are limited.
The Commission notes that consumers are likely to continue to see a higher level of advertising than would be the case without investment as a result of this decision but are satisfied that as the investment is focused on the National Lottery Brand and draw-based Games (which are low risk gambling products), along with the other ongoing work relating to player protection, there are sufficient safeguards in place to mitigate any potential risk.
The Commission will continue to monitor and challenge Camelot on its ongoing delivery of high standards in terms of player protection measures. Camelot is also required to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment will be positive in all plausible scenarios.
The Proposal is expected to deliver additional returns during 2021/22, along with having a positive impact on the long-term brand health of the National Lottery.
Decision
- Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the Proposal was approved.
March 2021 - Notice of variations – Third Licence Extension
Summary
In certain scenarios, Condition 23.9 of the Third Section 5 Licence allows the Gambling Commission, in its absolute discretion, to extend the duration of this Licence for a period of six months. A maximum of two such extensions are permitted.
One such scenario relates to the Competition process, i.e. where the Competition takes longer than was originally envisaged. In May 2020, having considered all advice available and the feedback we had received from potential applicants, the Commission decided to delay the launch of the Competition by three months.
As a result, and specifically to ensure a smooth transition between this Licence period and the next, the Commission decided to enact the first six-month extension to the Third Licence.
The current operator, Camelot, was notified of this extension in line with the requirements set out within Condition 23.9. Since that point, the Commission and the current operator have been working to agree the associated variations to the Third Section 5 Licence and Section 6 Scratchcards Class Licence.
These variations were limited in nature, as they primarily focussed on reflecting the amended Licence Expiry date of 31 July 2023 throughout the updated Licences.
The updated Licences, reflecting the six-month extension to the Third Licence period, were subsequently published on 31 March 2021.
March 2021 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery
Summary
In November 2020, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment from the National Lottery Distribution Fund (NLDF) for the 2021/22 financial year, to support marketing of Lotto, EuroMillions, Set for Life and the National Lottery brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety
- ensure the interests of every participant in a Lottery are protected
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced total investment for National Lottery marketing and enabling spend of £69.4m (reduced from £91.5m). £65.3m of this is NLDF investment
- Camelot confirming its commitment to further investment in its retail estate
- Camelot enhancing the proposed performance metrics to ensure the Commission can effectively measure the success of the investment
- Camelot maintaining its investment in the ITV results show.
- Following the conclusion of this evaluation process, in March 2021 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety
- the interests of every participant in the National Lottery are protected
- secure an increase in the net proceeds of the National Lottery.
- The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
- The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the proposal regarding player interests are limited.
The Commission notes that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. Camelot is also required to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2021/22, with Camelot’s forecasted benefits representing a prudent approach with potential for further upside.
Decision
- Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
2020 Licence decisions
- July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery Brand
- July 2020 - Rationale for agreeing Condition 23 Licence Investment Proposal: Marketing Investment in Set for Life
- July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for Lotto and EuroMillions
July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for the National Lottery Brand
Summary
In January 2020, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year, to support the National Lottery Brand. The investment would support the long-term health of the National Lottery by driving positivity, loyalty and an emotional connection to the brand.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- ensure the interests of every participant in a Lottery are protected; and
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced NLDF investment for Brand marketing and enabling spend of £25.0m (reduced from £31.7m)
- Camelot to include additional metrics to ensure the Commission can effectively measure the performance of the investment
- Camelot to maintain its investment in the ITV results show.
Following the conclusion of this evaluation process, in July 2020 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the Proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- secure an increase in the net proceeds of the National Lottery.
The detailed assessment undertaken by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis. The Commission has a high level of assurance the investment will deliver incremental benefits to good causes particularly in the long-term.
Propriety
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety. Player interests
The Commission considered the potential impacts of the Proposal regarding player interests are limited.
It was noted that consumers were likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. The Commission expects Camelot to continue to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure good cause returns on the investment are positive in all plausible scenarios. Investment in the Brand provides longer-term benefits to the National Lottery, as it should improve positivity and enhance the link between play and good causes.
Without investment into the brand, player sentiment and participation are likely to continue to decline. Consequently, this could impact on good causes for the remainder of the current Licence.
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the Proposal was approved by the Commission.
July 2020 - Rationale for agreeing Condition 23 Licence Investment Proposal: Marketing Investment in Set for Life
Summary
In February 2020, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year, to support Set for Life. The investment aims to maintain the success of the Set for Life game which launched in March 2019.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- ensure the interests of every participant in a Lottery are protected; and
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding the Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- A reduced NLDF investment for Set for Life marketing and enabling spend of £5.9m (reduced from £8.9m)
- Camelot to include additional metrics to ensure the Commission can effectively measure the performance of the investment.
Following the conclusion of this evaluation process, in July 2020 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- secure an increase in the net proceeds of the National Lottery.
The detailed assessment completed by Officials of the proposal, and the findings of the Commission’s external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes particularly in the long-term.
Propriety
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interest
The potential impacts of the proposal regarding player interests are limited. We do note however, that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. The Commission expects Camelot to continue to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to good causes
Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios.
The proposal is likely to deliver substantial additional returns during 2020/21, with Camelot’s forecasted benefits representing a prudent approach with potential for further upside.
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
July 2020 - Decision notice for Condition 23 Licence Investment Proposal: Marketing Investment for Lotto and EuroMillions
Summary
In November 2019, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a Licensee Notice of Investment Opportunity (the Proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The Proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2020/21 financial year, to support Lotto and EuroMillions. The investment would primarily support the marketing of rollovers and events.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to:
- ensure the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- ensure the interests of every participant in a Lottery are protected; and
- subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this Proposal has been both robust and extensive, utilising the support of external experts where appropriate.
As a result of this process, and significant engagement with Camelot, modifications were made to the original Proposal prior to a decision being made. These included:
- a reduced NLDF investment for Lotto and EuroMillions marketing and enabling spend of £35.45m (reduced from £45.5m)
- Camelot to provide additional operational and performance targets in relation to its retail estate
- Camelot to increase its investment in Capex spend to £6.5m (£4.2m incremental) for 2020/21.
Following the conclusion of this evaluation process, in July 2020 the Commission approved the Proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- secure an increase in the net proceeds of the National Lottery.
The detailed assessment completed by Officials of the Proposal, and the findings of the Commission’s external specialists, provide assurance the Proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to good causes.
Propriety
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the proposal regarding player interests are limited.
The Commission notes that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progress in terms of player protection measures. The Commission expects Camelot to continue to ensure its advertising is not of particular appeal to children, young people or vulnerable adults. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected. Returns to good causes
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that good cause returns on the investment are positive in all plausible scenarios. The proposal is likely to deliver substantial additional returns during 2020/21, with Camelot’s forecasted benefits representing a prudent approach with potential for further upside.
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
2019 Licence decisions
- August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Brand Marketing Investment
- August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Retailers and Self-Checkout Investment
August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Brand Marketing Investment
Summary
On 10 June 2019, Camelot UK Lotteries Limited (Camelot) served the Gambling Commission (the Commission) with a modified Licensee Notice of Investment Opportunity (the proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The proposal requested an investment in marketing from the National Lottery Distribution Fund (NLDF) for the 2019/20 financial year, to support the National Lottery brand. The investment would support the long-term health of the National Lottery by driving positivity, loyalty and an emotional connection to the brand. Camelot is also investing in capital expenditure as part of the overall proposal.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. That decision is subject to the Commission’s overriding statutory duties to secure that:
- The National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- The interests of every participant in a lottery that forms part of the National Lottery are protected; and
- Subject to the above two provisos, that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this proposal has been both robust and extensive, utilising the support of external experts where necessary.
As a result of this process, and significant engagement with Camelot, modifications were made to the original proposal prior to a decision being made. These included:
- A reduced NLDF investment for brand marketing and enabling spend of £12.1m (reduced from £27.2m)
- Camelot to contribute the remaining funding for the brand investment to ensure the optimum £36.0m identified in Camelot’s proposal is committed to brand spend
Following the conclusion of this evaluation process, the Commission approved the proposal (as revised and improved), as the Commission was satisfied that the proposal is likely to:
- Continue to ensure that the National Lottery is run with all due propriety;
- the interests of every participant in the National Lottery are protected, and;
- Secure an increase in the net proceeds of the National Lottery
Decision and rationale
The detailed assessment completed by Officials of the proposal, and the findings of the Commission’s external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver incremental benefits to Good Causes particularly in the long-term. Propriety
The Commission is satisfied the proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impacts of the proposal regarding player interests are limited. We do note however, that consumers are likely to see additional advertising as a result of this decision. The Commission will continue to challenge Camelot on its wider progression in terms of player protection measures. Accounting for this broader activity, we are therefore satisfied that the interests of every participant in a lottery that forms part of the National Lottery are protected.
Returns to Good Causes
Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that Good Cause returns on the investment are positive in all plausible scenarios. Investment in the brand provides longer-term benefits to the National Lottery, as it should improve positivity and enhance the link between play and good causes.
Without investment into the brand, player sentiment and participation are likely to continue to decline. Consequently, this could impact on the appeal of bidding for the fourth licence competition which in turn may impact on good causes for the fourth licence period
Decision
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
August 2019 - Rationale for agreeing Condition 23 Licence Investment Proposal: Retailers and Self-Checkout Investment
Summary
On 7 February 2019, Camelot served the Gambling Commission with a modified Licensee Notice of Investment Opportunity (the proposal) in accordance with the provisions of Condition 23 of the Section 5 Third National Lottery Licence (the Licence).
The proposal requested investment from Good Causes in retail infrastructure i.e. expansion of the National Lottery into discounters, and introduction of the National lottery at self-checkout in major supermarkets.
The Licence provides that at the end of an evaluation process, the Commission may accept a proposal, propose modifications to a proposal, or reject a proposal. The decision is subject to the Commission’s overriding statutory duties to secure that:
- the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety;
- the interests of every participant in a lottery that forms part of the National Lottery are protected; and
- Subject to the provisos in (a) and (b), that the net proceeds of the National Lottery are as great as possible.
The evaluation process undertaken by the Commission regarding this proposal has been both robust and extensive, utilising the support of external experts where necessary.
Following the conclusion of this evaluation process, modifications were made to the original proposal which included:
- Camelot to provide an additional £1.0m of incremental capital expenditure across discounters and self-checkout.
- a reduction in the investment from good causes, from £14.1m to £13.1m
- wording to allow either party to cease the investment should it not provide adequate returns.
The proposal (as revised and improved), satisfied the Commission in that the proposal is likely to:
- Secure a significant increase in the net proceeds of the National Lottery; and
- Continue to ensure that the National Lottery is run with all due propriety and the interests of every participant in the National Lottery are protected.
Decision and rationale
The detailed assessment completed by Officials, and the findings of external specialists, provide assurance the proposal has a strong strategic basis and a high level of assurance the investment will deliver significant incremental benefits to Good Causes.
The rationale behind this proposal is to evolve the retail offering in line with the changes in the retail landscape and to ensure that the National Lottery is present both where and how customers are shopping. Propriety
The Commission is satisfied that the proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
Player interests
The potential impact regarding player interests has been considered fully during Officials’ assessment of the proposal, including the impact on underage and problem play. No risks have been identified that cause Officials to conclude that the proposal is likely to have an adverse impact on our statutory duty to protect the interests of players.
Officials’ view is that this proposal would be beneficial to consumers by making the purchase of National Lottery tickets more convenient and in line with shopping trends.
Returns to Good Causes
The overall investment is highly positive for Good Causes. Camelot is contributing 13% of the overall investment with Good Causes forecast to receive around 97% of the gross benefit.
Camelot’s forecasts have been scrutinised by Officials and the Commission’s external advisors to ensure that Good Cause returns on the investment are positive in all plausible scenarios.
The conclusion from this work is therefore that the proposal is likely to deliver substantial additional Returns to Good Causes till the end of the current licence period.
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Last updated: 1 March 2023
Show updates to this content
Updated the page layout, navigation and page title as per user feedback.
Updated Third National Lottery Licence and Control Sheet for February 2023 and added 2023 Decision notice.