NAO to review Gambling Commission oversight of National Lottery licence

The National Audit Office has opened an inspection into the fourth National Lottery licence, examining whether the Gambling Commission's oversight is positioned to maximise returns to Good Causes, SBC News reported.

The ten-year licence took effect in 2024 under Allwyn UK, the gambling group that took over from Camelot, operator of the lottery since its 1994 launch.

During the bidding process, Allwyn pledged to double weekly Good Causes funding from £30m to £60m, equivalent to roughly £3.2bn a year, over the course of its tenure.

That target has not yet been met. Contributions in 2025, Allwyn's first full year running the lottery, totalled around £1.7bn.

Good Causes contributions have never exceeded £2bn in the lottery's history. Camelot came closest, reaching £1.9bn at one point during its time as operator.

Gambling Commission figures for the second quarter of 2026 showed £377.2m raised between April and June, a sharp fall compared with the same period in previous years.

Ted Orme-Claye, Editor of SBC News, told the outlet's iGaming Daily podcast that Allwyn's doubling commitment reflected the company's wider ambitions as a lottery operator rather than a realistic near-term target.

"I think that Allwyn in general is a very ambitious company. This really just speaks more to their group-wide ambitions of being a lottery entertainment company," Orme-Claye said.

He noted that Allwyn had already built a presence in the Czech Republic, Greece and North America before winning the UK contract, calling it "a really big moment for them" and suggesting the company set an early target to establish a precedent for the rest of the ten-year licence.

Viktor Kayed, Senior Journalist at SBC News, said the shortfall against Allwyn's own target raised questions, though he cautioned that several factors could explain it.

"It could be the economic environment in the UK itself, it could be the jackpot cycles. If we're looking at the operator, it could be how those games are being marketed and delivered to market," Kayed said.

He added that the April-to-June period marking the lowest quarterly total in a decade would not help Allwyn's position if scrutiny of its performance intensifies.

The NAO's assessment is due to conclude in spring 2027. It will examine the work carried out by the Gambling Commission and the Department for Culture, Media and Sport in overseeing the licence, including the design of the award process, the transition between operators, and plans to support delivery of the licence through to 2034.