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

News · February 10, 2024 · Naomi Clarke · 10 min

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Allwyn Entertainment officially became the National Lottery operator in February 2024, ending Camelot's 28-year tenure. The transition brings new games, digital innovations, and a commitment to raise £38 billion for good causes over 10 years—but also concerns about responsible gambling and retailer support.

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.