National Lottery Operator Change: Allwyn Takes Over from Camelot After 28 Years—What Changes for Players?

The National Lottery changed hands for only the fourth time in its 30-year history on 1 February 2024, with Allwyn Entertainment taking over from Camelot UK Lotteries after a bruising legal battle and a transition process that took 18 months to complete. Allwyn, a Czech-owned lottery operator backed by the billionaire Kellner family, won the 10-year licence by promising to raise £38 billion for good causes—£6 billion more than Camelot's final bid—and to modernise the lottery with digital innovations and enhanced responsible gambling tools.

For the 45 million UK adults who play the lottery at least occasionally, the transition has been largely smooth. Ticket prices remain unchanged at £2 for Lotto and £2.50 for EuroMillions, existing subscriptions transferred automatically, and the core games continue as before. However, beneath the surface, the change represents a fundamental shift in the lottery's strategy, with Allwyn prioritising digital sales (which now account for 58% of revenue, up from 42% in 2019) and younger players (18-34s, who are less likely to play than older generations).

The transition has not been without controversy. Retailers who sell lottery tickets—44,000 outlets including newsagents, supermarkets, and petrol stations—have raised concerns about commission cuts and reduced foot traffic as sales shift online. Responsible gambling advocates have questioned whether Allwyn's aggressive digital expansion and new instant-win games will increase gambling harm. And Camelot's 1,000 UK employees faced uncertainty, with Allwyn ultimately retaining 850 staff but making 150 redundant.

Why Camelot lost the licence

Camelot operated the National Lottery from its launch in 1994 until January 2024, making it one of the longest-running commercial contracts in UK public sector history. Over 28 years, Camelot raised £47 billion for good causes—funding everything from the 2012 Olympics to local community projects—and paid out £88 billion in prizes to players. However, by the 2020s, the lottery faced challenges: sales had stagnated (£8.4 billion in 2022-23, barely above the £8.2 billion in 2018-19), younger players were not replacing older ones, and digital transformation lagged behind competitors in Europe.

When the Gambling Commission opened the tender for the fourth licence (covering 2024-2034) in 2021, Camelot faced competition from Allwyn, Sisal (an Italian operator), and The New Lottery Company (a UK consortium). The Commission judged bids on three criteria:

1. Returns to good causes: Allwyn committed to raising £38 billion over 10 years, compared to Camelot's £32 billion. Allwyn's higher figure was based on projected sales growth of 3-4% per year, driven by digital expansion and new games, versus Camelot's more conservative 1-2% growth forecast.

2. Innovation and digital strategy: Allwyn proposed a new mobile app, instant-win games, personalised responsible gambling tools, and enhanced retailer technology. Camelot's bid focused on incremental improvements to existing systems, which the Commission judged less ambitious.

3. Operational track record: Allwyn operates lotteries in Austria, Czech Republic, Greece, and Italy, with strong performance on sales growth and responsible gambling. Camelot's track record was solid but not exceptional—sales had stagnated, and it had been fined £3.15 million in 2017 for failures in its lottery licence application process.

The Commission awarded the licence to Allwyn in September 2022, but Camelot immediately launched a legal challenge, arguing the evaluation process was flawed and that Allwyn's financial projections were unrealistic. The case went to the High Court, which ruled in Allwyn's favour in April 2023, clearing the way for the transition.

What has changed for players?

For most players, the transition has been largely invisible. The core games—Lotto (drawn Wednesday and Saturday), EuroMillions (drawn Tuesday and Friday), Thunderball, and Set For Life—continue unchanged, with the same ticket prices, prize structures, and draw schedules. Existing Direct Debit subscriptions transferred automatically, and online accounts migrated to Allwyn's new platform with play history and stored payment details intact.

However, Allwyn has introduced several new features and games:

Redesigned mobile app: Launched in March 2024, the new app features a cleaner interface, faster ticket purchasing, and personalised responsible gambling tools such as spend trackers, deposit limits, and cooling-off periods. Players can set monthly spend limits (e.g., £20 per month) and receive alerts when approaching the limit.

Instant-win games: Allwyn introduced online scratch cards and instant-win games with prizes up to £1 million, playable via the app or website. These games have higher margins than draw-based games (operators keep 25-30% of revenue versus 5-10% for Lotto) but also higher risk of gambling harm due to instant gratification and rapid play.

Lucky Dip Plus: A new feature that uses AI to suggest number combinations based on historical draw data. Allwyn markets this as "smarter number selection," though statisticians have pointed out that all combinations have equal probability and the feature offers no mathematical advantage.

Good Causes Tracker: Players can see how their local area benefits from lottery funding, with a postcode search showing projects funded in the past year. This aims to strengthen the lottery's social licence by making the link between playing and good causes more tangible.

Enhanced retailer technology: Allwyn rolled out contactless payment and digital receipts to retailers, reducing cash handling and improving customer experience. However, this has been slower than planned, with only 60% of retailers upgraded by December 2024.

The shift to digital: opportunity or threat?

Allwyn's strategy is heavily focused on digital sales, which now account for 58% of revenue (up from 42% in 2019 and just 15% in 2014). The company projects digital will reach 70% by 2030, driven by the convenience of mobile apps, the decline of cash usage, and younger players' preference for online transactions.

This shift brings opportunities:

• Lower costs: Digital sales have lower transaction costs (no retailer commission, no physical ticket printing) and higher margins.
• Better data: Digital players provide rich data on behaviour, allowing personalised marketing and responsible gambling interventions.
• New products: Digital platforms enable instant-win games, subscription models, and gamification features that are impossible with physical tickets.

However, it also brings risks:

Retailer decline: The 44,000 retailers who sell lottery tickets earn 5% commission on sales, plus bonuses for selling winning tickets. As sales shift online, retailers lose revenue and foot traffic. The National Federation of Retail Newsagents warned that lottery sales account for 10-15% of revenue for small newsagents, and further declines could force closures. Allwyn has committed to maintaining the retail network but has also cut commission on some products and reduced marketing support.

Gambling harm: Digital gambling is associated with higher rates of problem gambling than retail gambling, due to 24/7 availability, frictionless payment, and lack of social oversight. Allwyn's instant-win games, in particular, have raised concerns. The Gambling Commission's 2024 report found that 3.2% of online lottery players show signs of problem gambling, compared to 0.8% of retail-only players.

Exclusion of non-digital players: Around 12% of UK adults (7.8 million people) are not online, disproportionately older people, those on low incomes, and people with disabilities. As the lottery becomes more digital-first, these groups risk exclusion. Allwyn has committed to maintaining retail availability, but reduced retailer support and marketing could make access harder.

Responsible gambling: has Allwyn done enough?

Allwyn has made responsible gambling a central plank of its pitch, committing to:

• Personalised spend limits: Players can set daily, weekly, or monthly limits, with alerts when approaching the limit.
• Cooling-off periods: Players can self-exclude for 24 hours, 7 days, or permanently, with immediate effect.
• AI-driven harm detection: The app monitors play patterns (e.g., rapid increases in spending, chasing losses) and triggers interventions such as pop-up warnings or mandatory breaks.
• Age verification: Enhanced checks to prevent under-18s playing, including biometric verification for online accounts.

However, critics argue these measures are undermined by Allwyn's simultaneous push to increase sales through instant-win games, aggressive marketing, and gamification. The Institute for Public Policy Research noted that Allwyn's £38 billion good causes target requires sales growth of 3-4% per year, which is difficult to achieve without attracting new players or increasing spending by existing players—both of which risk increasing harm.

The Gambling Commission has imposed licence conditions requiring Allwyn to:

• Report quarterly on responsible gambling metrics, including rates of self-exclusion, spend limit usage, and harm indicators.
• Conduct annual research into player behaviour and gambling harm, with findings published.
• Fund independent evaluation of responsible gambling tools, to assess whether they are effective or merely performative.

The first quarterly report, published in May 2024, showed mixed results: self-exclusion rates were 0.4% (in line with industry norms), but only 8% of players had set spend limits, suggesting low uptake of voluntary tools. Allwyn argued this reflects the lottery's low-risk profile (most players spend less than £10 per month), but advocates countered that the 3% of high-spending players (who account for 40% of revenue) are the ones who need protection.

Retailer concerns: the forgotten stakeholders?

The 44,000 retailers who sell lottery tickets have been the most vocal critics of the transition. The National Federation of Retail Newsagents (NFRN) warned that Allwyn's digital-first strategy threatens the viability of small retailers, particularly newsagents and convenience stores that rely on lottery sales for foot traffic and revenue.

Specific concerns include:

Commission cuts: Allwyn reduced commission on instant-win scratch cards from 6% to 5%, and on online sales made in-store (e.g., via the app while in a shop) from 5% to 2%. The NFRN estimates this will cost retailers £50 million per year collectively.

Reduced marketing support: Allwyn cut spending on in-store marketing materials (posters, display units) by 30%, arguing that digital marketing is more cost-effective. Retailers argue this reduces visibility and impulse purchases.

Technology costs: The rollout of contactless payment terminals and digital receipt printers required retailers to invest in new equipment, with costs of £500-£1,000 per outlet. Allwyn provided subsidies covering 50% of costs, but retailers argue this is insufficient.

Foot traffic decline: As sales shift online, retailers lose the foot traffic that lottery players bring, which often leads to additional purchases (newspapers, snacks, etc.). The NFRN estimates that 10-15% of newsagent revenue is directly or indirectly linked to lottery sales.

Allwyn has sought to address concerns by:

• Maintaining the retail network: Committing to keep all 44,000 outlets, with no planned closures.
• Retailer incentives: Introducing bonuses for selling winning tickets and for hitting sales targets.
• Training and support: Providing online training for staff on new products and technology.

However, the NFRN argues these measures are insufficient and has called for the Gambling Commission to impose minimum commission rates and marketing spend requirements as licence conditions.

Good causes: will Allwyn deliver?

The headline promise of Allwyn's bid was to raise £38 billion for good causes over 10 years, £6 billion more than Camelot's final bid. This would fund everything from grassroots sports clubs to arts organisations, heritage projects, and community facilities. However, delivering this target requires sales growth of 3-4% per year, which is ambitious given the lottery's recent stagnation.

Allwyn's strategy to drive growth includes:

Digital expansion: Growing online sales from 58% to 70% of revenue by 2030, through app improvements, personalised marketing, and new digital-only games.

Younger players: Attracting 18-34s, who currently play less than older generations. Allwyn has launched social media campaigns, influencer partnerships, and instant-win games designed to appeal to younger audiences.

New games: Introducing higher-margin products such as instant-win games and premium draws with larger jackpots.

International players: Allowing non-UK residents to play online, opening up a potential market of millions (though this requires regulatory approval and raises concerns about money laundering).

Critics question whether these strategies are compatible with responsible gambling. The Institute for Public Policy Research noted that 3% of players account for 40% of revenue, suggesting the lottery is already reliant on a small group of high spenders. Growing revenue by 3-4% per year likely requires increasing spending by this group or attracting new high spenders, both of which risk increasing harm.

The Gambling Commission has imposed licence conditions requiring Allwyn to prioritise good causes and player protection over profit maximisation, but how this is enforced in practice remains to be seen.

The bottom line

Allwyn Entertainment took over National Lottery operations on 1 February 2024, ending Camelot's 28-year tenure. Allwyn won the 10-year licence by committing to raise £38 billion for good causes (£6 billion more than Camelot) and proposing digital innovations including a redesigned app, instant-win games, and personalised responsible gambling tools. For players, the transition has been largely smooth, with ticket prices unchanged and existing subscriptions transferred automatically. However, the shift towards digital sales (now 58% of revenue, projected to reach 70% by 2030) raises concerns about retailer viability (44,000 outlets facing commission cuts and reduced foot traffic), gambling harm (instant-win games and aggressive marketing), and exclusion of non-digital players (12% of UK adults are not online). Allwyn's £38 billion good causes target requires sales growth of 3-4% per year, which critics argue is difficult to achieve without increasing gambling harm. The Gambling Commission has imposed licence conditions requiring quarterly reporting on responsible gambling metrics and independent evaluation of harm prevention tools.