Gambling Commission: Allwyn’s National Lottery tenure will “encourage investment in innovation”
Executive director John Tanner suggests that Allwyn’s licence tenure will further The National Lottery’s legacy for good causes and product innovation
Gambling Commission (GC) executive director John Tanner has claimed that Allwyn’s stewardship of fourth UK National Lottery licence will result in further innovation and a greater return to good causes.
In a blog post on the GC website, Tanner explained what the impending licence switch, which begins on 1 February, will mean for lottery customers as Allwyn takes over from Camelot.
He said that the “average National Lottery player will not notice anything different on day one” as he talked up the potential for change as Allwyn’s licence tenure continues.
Tanner added that players will eventually see for themselves the reasons for the new licence in the way players’ money will be used for good causes.
He said: “If you go to buy a ticket for the Saturday draw or have a go on a scratchcard on 1 February, you will still be able to, like you always have done. But over time, as Allwyn rolls out its plans for The National Lottery, you will see changes which we expect will lead to higher returns to good causes.
“Second, while you might not notice it yourself, from the 1 February, a larger part of every pound you spend on The National Lottery will end up with good causes across the country and in your communities.”
Tanner also explained the mechanisms behind the growth in returns to good causes and the tandem aspect of Allwyn’s financial performance.
He said: “We have designed the fourth licence to have a new ‘Incentive Mechanism’ that means, unlike before, all National Lottery products will make returns to good causes at the same level.
“It also means that for the company who runs The National Lottery – Allwyn – it will only see its profits go up if returns to good causes go up.”
Tanner stressed that responsible gambling will remain at the “heart of the fourth licence”, and the GC will continue to monitor the licence to ensure the lottery remains “a safe for people to play and enjoy”.
Towards the end of his blog, the executive director explained another intention of the new licence.
He continued: “We have built the licence in a way to encourage investment in innovation for the length of the licence by adopting an outcomes-based model that builds in certainty on how long the licence will last.”
Tanner added that an extension to Allwyn’s 10-year licence could be forthcoming should there be value in doing so.
Alongside Tanner’s blog post, the GC has released key documents relating to Allwyn’s licence agreement.
These documents include the licence itself, the enabling agreement between the regulator and operator, a cooperation agreement and Allwyn’s Deed of Adherence.