Daily Junction.mobi portalThe 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.
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:
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.
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.
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.