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National Audit Office to review National Lottery licence in the UK

NAO will examine the licence award, transition to Allwyn and oversight until 2034

By Miguel SandovalPublished Oct 20, 20262 min readEurope
National Audit Office stamp on documents detailing the National Lottery licence in the United Kingdom

Key Takeaways

  • The National Audit Office has launched a review of the National Lottery licence and will publish its report in spring 2027.
  • The inquiry will evaluate how the Gambling Commission and the Department for Culture, Media and Sport designed and awarded the ten-year licence.
  • Allwyn UK took over operation in February 2024 after winning the procurement and later bought Camelot.
  • Allwyn promised to raise Good Causes contributions from £30m to £60m per week, a target not met: 2025 contributions were about £1.7bn.

The National Audit Office (NAO) has begun a review of the current licence for the National Lottery in the United Kingdom to assess the oversight exercised by the Gambling Commission and the Department for Culture, Media and Sport. The review will examine how the fourth ten-year licence was designed and awarded, oversight of the transfer from Camelot to Allwyn, and preparations to ensure delivery of the contract through 2034; the report is due in spring 2027. The NAO will assess whether the Gambling Commission’s supervision met the public interest and has published the review scope.

Scope of the review

The NAO seeks to determine whether the Gambling Commission and the Department for Culture, Media and Sport are securing the best possible returns for Good Causes following the new licence taking effect. The investigation will cover:

  • the design and award of the ten-year licence, the fourth since 1994

  • the oversight of the operational transition from Camelot to Allwyn

  • the preparations to support delivery of the licence through 2034 and to inform future licence arrangements

The NAO has stated that its assessment will focus on the responsibilities of both organisations in relation to the National Lottery.

Context and key figures

Allwyn UK took over operation of the National Lottery in February 2024 after winning the Gambling Commission’s procurement, beating Sisal and Northern & Shell/The New Lottery Company (TNLC). Allwyn subsequently acquired Camelot. In April, the High Court dismissed TNLC’s legal challenge to the Gambling Commission’s decision; the request for permission to appeal to the Court of Appeal was also refused, effectively closing TNLC’s route to compensation.

In its bid, Allwyn pledged to increase funding for Good Causes from £30m to £60m per week, equivalent to approximately £3.2bn per year over the licence term. That target has not yet been met: contributions in 2025, the first full year under Allwyn, totalled around £1.7bn. Gambling Commission statistics show that between April and June 2026 some £377.2m was raised for Good Causes, a decline on the same period in previous years.

The NAO plans to publish its report in spring 2027 and will evaluate whether oversight protected the interests of Good Causes and whether the transition and award were properly managed.

Miguel Sandoval, Regulatory Correspondent.

Frequently Asked Questions

What will the National Audit Office examine in this review?

The NAO will examine the design and award of the ten-year licence, the supervision of the operational transition from Camelot to Allwyn, and preparations to support delivery of the licence through 2034, focusing on the roles of the Gambling Commission and the Department for Culture, Media and Sport.

When is the NAO report expected?

The NAO’s report is expected in spring 2027. The review is already underway and the NAO has set that date as its completion target.

Has Allwyn met its funding commitment for Good Causes?

No. Allwyn has not yet met its pledge to increase contributions to £60m per week. In 2025 contributions were approximately £1.7bn, below the equivalent of around £3.2bn per year promised in its bid.

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About the author

Miguel Sandoval

Miguel Sandoval

Regulatory Affairs Correspondent

Miguel Sandoval tracks gambling legislation, licensing, and regulator enforcement — from Spain's DGOJ and the Latin American authorities to the UKGC, the MGA, and the state-by-state map in North America. The reports answer three questions precisely — what changed, where, and who it affects — with jurisdictions, dates, and penalties cited exactly as published. Operators and compliance officers read Miguel Sandoval to know which rulebook moved before their next meeting.

More from Miguel Sandoval

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