Questions raised after Camelot regains pole position in Lottery fight

CAMELOT was on course to lose the contract to run the National Lottery for the first time since 1994 – until moves by officials which put it back in prime position, The Mail on Sunday understands.

The battle for the hugely lucrative Government contract is now reaching its climax, with the Gambling Commission poised to decide between Camelot and Europe’s largest lottery operator, Allwyn.

Sources say Allwyn, which has proposed slashing ticket prices from £2 to £1 and having two draws on one night, came out on top in the initial marking.

But this paper understands that Allwyn, run by Czech billionaire Karel Komarek, fell back into second place after a ‘risk factor’ assessment was applied by the Gambling Commission. A Whitehall source said officials were saying Camelot should get ‘preferred bidder’ status for the fourth renewal of the contract as it represented a lower risk given its 27-year track record.

However, politicians have been concerned about the proportion of Camelot’s revenues going to good causes.

The company’s profits have soared from £29million in 2010 to £78million in 2020, thanks in part to more emphasis on scratch cards and instant-win games online. But an average of 10p in every pound spent on scratch cards goes to charities, compared with 30p in the pound from draws.

Camelot has pointed out that more than £45billion has now been raised for good causes and that it has also delivered £140billion for winners and

‘If you halve ticket prices you’ll also halve revenue’

society, adding that ‘focusing on one part of the games portfolio doesn’t give an accurate picture’.

One industry source cast doubt on Allwyn’s plan to cut prices, saying: ‘If you halve the ticket price you’ll also halve the revenue raised.’

Under the contract renewal process, the Gambling Commission will make a recommendation to Nadine Dorries, the Culture Secretary, before a final award of the licence to run until 2034

is made by No10. A formal announcement is expected later this month.

A Gambling Commission spokesman stressed the ‘fair and open’ competition process ‘has not concluded’.

Camelot said the lottery offered ‘a wide range of games with something for everyone’, adding: ‘This has resulted in four successive years of sales growth, including the last two years of record sales. Annual returns to good causes are now over £500 million higher than they were at the start of the third licence in 2009.’

Allwyn declined to comment.