National Audit Office launches review of National Lottery licence oversight
NAO will assess Gambling Commission and DCMS handling of the award and transition to Allwyn UK.
Key Takeaways
- The National Audit Office opened its review on 19 October 2026 and will report in spring 2027.
- The review covers the design and award of the 10-year National Lottery licence and oversight of the February 2024 transition to Allwyn UK.
- Allwyn pledged to raise Good Causes funding from £30m to £60m weekly, equivalent to ~£3.2bn per year; 2025 contributions reached about £1.7bn.
- Gambling Commission data show £377.2m was raised for Good Causes between April and June 2026, down on previous years.
The National Audit Office has opened a review of the current National Lottery licence and the Gambling Commission’s oversight, the NAO said on 19 October 2026. The watchdog will examine how the Gambling Commission and the Department for Culture, Media and Sport designed and awarded the 10-year licence, how they managed the transition from Camelot to Allwyn UK in February 2024, and preparations to support delivery through to 2034. The NAO expects to publish its report in spring 2027.
Scope of the NAO review
The NAO intends to assess three core areas: the design and award of the fourth National Lottery licence since 1994; oversight of the operational handover from Camelot to Allwyn UK; and arrangements by the Gambling Commission and the Department for Culture, Media and Sport to inform future lottery licensing. The review will consider whether oversight is delivering the best possible returns for good causes after Allwyn UK took over operation in February 2024.
Background to the licence and legal challenges
The 10-year licence awarded to Allwyn UK is the first not won by Camelot since the lottery began in 1994. Allwyn won the Gambling Commission’s tender ahead of bids from Sisal and Northern & Shell/The New Lottery Company (TNLC). TNLC mounted a legal challenge against the Gambling Commission’s decision; the High Court dismissed that challenge in April 2024 and the Court of Appeal later refused TNLC’s request for permission to appeal, ending its prospects of claiming compensation.
Financial promises and early performance
As part of its bid, Allwyn pledged to raise funding for good causes from £30m to £60m each week, equivalent to roughly £3.2bn annually over the licence term. That weekly target has not yet been met: contributions in 2025, Allwyn’s first full year as operator, totalled approximately £1.7bn. Gambling Commission statistics show £377.2m was raised for Good Causes between April and June 2026, a decline versus the same quarter in previous years.
The NAO will publish its findings in spring 2027 and will report on lessons for delivery up to 2034 and for future licensing arrangements. For regulatory context see regulation.
Frequently Asked Questions
What is the National Audit Office reviewing in relation to the National Lottery licence?
The NAO is reviewing how the Gambling Commission and the Department for Culture, Media and Sport designed and awarded the 10-year National Lottery licence, how they oversaw the transition from Camelot to Allwyn UK in February 2024, and preparations to support delivery through to 2034, with a report due in spring 2027.
When did Allwyn UK take over the National Lottery and what did it promise?
Allwyn UK took over operation of the National Lottery in February 2024 and pledged to increase funding for good causes from £30m to £60m each week, equivalent to roughly £3.2bn annually over the licence term.
Have Allwyn’s funding pledges been met?
Allwyn’s pledged target has not yet been met: contributions for 2025, the first full year under Allwyn, were approximately £1.7bn, and £377.2m was raised for Good Causes between April and June 2026, a year-on-year decline for that quarter.
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About the author
Eleanor Whitfield
Regulatory Affairs Correspondent
Eleanor Whitfield tracks gambling legislation, licensing decisions, and regulator enforcement across key markets — from the UKGC, MGA, and Germany's GGL to Spain's DGOJ and the state-by-state map in the Americas. The reporting answers three questions precisely: what changed, where, and who it affects, with jurisdictions, effective dates, and penalty figures named exactly as published. Compliance officers and operators read Eleanor Whitfield to know which rulebook moved before their next board meeting.
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