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Find out about the licence to run The National Lottery and how The Section 5 licence requires Camelot to submit information and policies to us for approval.
Published: 13 August 2020
Last updated: 24 July 2023
This version was printed or saved on: 1 December 2023
Online version: https://www.gamblingcommission.gov.uk/public-and-players/guide/licence-to-run-the-national-lottery
Overview: 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:
Information about each game licence is available in the National Lottery games and licences guide.
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:
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.
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.
Similar to the process for approval, we agree to allow Camelot to pursue a course of action.
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:
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.
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.
We publish the information and policies Camelot submit to us for approval, along with our decisions.
In February 2023, 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 2023 to 2024 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:
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, two modifications were made to the original Proposal prior to a decision being made. These were:
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 lower 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. In parallel, the Commission expects Camelot to continue to ensure its advertising is not of strong 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.
Camelot’s financial forecasts have been scrutinised by Officials and the Commission’s external advisers 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 2023 to 2024, along with having a positive impact on the long-term brand health of the National Lottery.
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:
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.
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:
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:
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.
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.
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.
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:
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:
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.
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.
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.
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:
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:
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.
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.
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:
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:
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:
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.
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.
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.
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.
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:
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:
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:
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.
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
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.
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.
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
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:
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:
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:
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.
The Commission is satisfied the Proposal is unlikely to have an adverse impact on the running of the National Lottery with all due propriety.
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.
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
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 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:
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:
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.
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.
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
Based on the information provided by Camelot and our considerations on propriety, player interests and returns to good causes, the proposal was approved.
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 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:
The proposal (as revised and improved), satisfied the Commission in that the proposal is likely to:
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.
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.
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.