National Lottery Operator Camelot Fined £1.5m
August 28, 2018
Camelot, the UK National Lottery operator, have been penalised £1.15m for “historic control and governance failings” by the UK Gambling Commission.
The failings relate to a fault found within their mobile app and the publishing of an incomplete list of raffle winners following a Lotto draw which displayed only 21 of the 88 victors. The UKGC also found problems regarding direct debit instructions and insecure security measures.
The UKGC have been running an investigation into Camelot’s shortcomings since December 2016 after problems regarding governance, risk and control were highlighted by the non-departmental public body.
“Camelot has taken a number of steps to rectify the issues and given us assurances that they now have the right processes in place to prevent reoccurrences,” said the UKGC Executive Director Richard Watson.
“It is crucial that the National Lottery is run fairly, safely and with integrity and we’ll continue to hold Camelot to account.”
Camelot responded to the fine by saying, “We accept the outcome of the Gambling Commission’s investigation in respect of a number of incidents dating back to 2016.
“As part of the regulatory settlement, we have accepted the historical licence breaches identified, provided voluntary undertakings and will make a payment to National Lottery Good Causes in lieu of a financial penalty.”
The UK Gambling Commission have long been criticised for their soft touch on the National Lottery, but in the past two years, Camelot have been fined over £4m for two seperate failings.
Camelot’s last penalty package came after a deliberately damaged ticket prompted suspicions of fraud.
“As part of the investigation, a man was arrested on suspicion of fraud by false representation,” read a statement from Hertfordshire Police at the time.
“Following a thorough investigation, the man was released with no further action to be taken against him.”
Sarah Harrison, the then UK Gambling Commission chief executive said, “Our investigation was wide-ranging. We are confident this is an isolated incident.”
Camelot was purchased for over £300m in 2010 by the Canadian firm Ontario Teacher’s Pension Plan and in June announced they had reversed the annual sales slump for the first time since 2017.