UK launches new National Lottery licence tender process
Gambling Commission focuses on incentivisation of good causes and brand protection with new 10-year contract award
The Gambling Commission (UKGC) has launched a competition process to find the next 10-year licensee for the UK’s National Lottery franchise.
In contrast with previous licences, the new licence will be fixed-term rather than on a flexible basis.
The current (third) licence was awarded in 2009 for 10 years and in March 2012 we extended it from 2019 by four years following an investment proposal by current licensee Camelot UK.
Then in 2020, as a result of the Covid-19 pandemic and concerns expressed by potential applicants, it was extended by a further six months, still expiring in 2023.
The UKGC highlighted the main benefit of switching to a fixed-term model as giving the prospective licensee a “clear period” for future investment planning in the brand.
In tandem with this change, the regulator said the new licence will provide “greater flexibility” to maximise returns to good causes.
Prospective licensees will also be required to foster strong relationships with existing National Lottery distributors, players and good causes companies.
The UKGC has further confirmed the implementation of a new good causes ‘incentive mechanism’.
The first stage of the competition begins on 28 August, with several operators including Scientific Games, Lottoland and Czech-based Sazka Group expected to compete for the contract.
It remains to be seen if incumbent Camelot UK, which has held the operating licence since 1994, will re-enter the competition to maintain its tenure.
Applicants who pass through the first stage of the tender will receive an Invitation to Apply (ITA) alongside forms required to begin their application.
The winning applicant will be announced in September 2021.
UKGC CEO Neil McArthur said the regulator was determined to “protect and build” on the reputation of the National Lottery as it enters a new licensing period, describing the service as a “national treasure”.
“For the fourth licence, we will be evolving our approach to regulation to build on the National Lottery’s huge successes,” McArthur explained.
“In line with our outcome-focused approach to regulation, we want the next licensee to have greater autonomy to meet the needs of players in 2023 and beyond, while ensuring there is clear accountability for the performance of the National Lottery.
“Throughout our market engagement, we have been encouraged by a healthy level of interest from a range of different parties and we look forward to running a competitive process,” he added.