UKGC Releases Lottery Bid Risk Communications
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The UK Gambling Commission (UKGC) has released communications with all four final bidders for the fourth National Lottery licence, shedding light on a key risk assessment criterion used in the high-stakes competition.

Responding to a Freedom of Information (FOI) request dated 21 September 2023, the regulator published excerpts of its correspondence with Camelot, Sisal, The New Lottery Company, and the eventual winner, Allwyn. The communications all concern the 'Solution Risk Factor', a metric used by the Commission to judge the level of risk in each applicant's bid.

What the Data Reveals

The request was a follow-up to a previous enquiry that had secured the release of similar information relating only to Allwyn. This new, broader request asked for the same details for the other three finalists in the tender process.

The UKGC's response provided a full disclosure, publishing a 503 KB document containing relevant excerpts from its communications with all four bidders. The bidders involved in the final stage were:

  • Allwyn: The successful applicant.
  • Camelot: The incumbent operator at the time.
  • Sisal: An international lottery operator.
  • The New Lottery Company: A subsidiary of Northern & Shell.

Significantly, the Commission noted that while fulfilling this new request, it discovered additional communications with Allwyn that had been missed during the initial, narrower FOI search. The regulator apologised for this "oversight" and included the previously omitted excerpts in the new disclosure document.

Why This Matters for Consumers

The 'Solution Risk Factor' was a critical component of the UKGC's evaluation framework. It was designed to assess the viability, robustness, and potential risks associated with each applicant's proposed plan for running the National Lottery from February 2024. A lower risk score would indicate a higher degree of confidence from the regulator in the bidder's ability to deliver on its promises and protect the significant funds generated for Good Causes.

The release of these communications offers a rare glimpse into the otherwise confidential process of how the UKGC scrutinised the technical and operational plans of each bidder. For consumers and the public, this transparency helps build a clearer picture of the regulator's decision-making process in awarding the ten-year, multi-billion-pound licence.

Industry Significance

This disclosure underscores the power of the Freedom of Information Act in holding public bodies accountable. The fact that a second, more comprehensive request unearthed documents that were missed in the first instance highlights the importance of persistent public scrutiny.

While the released document contains only excerpts, it provides valuable insight into the types of questions and concerns the UKGC raised with each applicant. This information allows for a more informed understanding of the competitive tender process and the regulatory diligence applied before Allwyn was officially named the preferred applicant.

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Written by

Regulatory Affairs Editor

LLB (Hons) in Law, University of Bristol. Postgraduate Diploma in Financial Regulation, University of Reading.

James has spent 12 years in gambling compliance and regulatory technology, previously working as Senior Compliance Analyst at a UK-based regulatory consultancy advising licensed operators on LCCP adherence.

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UKGC National Lottery Allwyn Camelot Sisal FOI Regulation

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