Commission considering investment proposal to expand National Lottery retailer network

NEWS RELEASE

REF: 02/11

Regulator considering investment proposal to expand National Lottery retailer network

The National Lottery Commission is considering a proposal from the operator Camelot for additional investment in the National Lottery infrastructure, in return for a five-year extension to the licence to operate the Lottery.

The proposal sets out plans to increase the National Lottery retail network by placing an extra 8,000 terminals where Camelot says it has identified latent demand.

The Commission will now undertake the detailed expert work required to analyse this proposal. This evaluation will be a significant piece of work for the Commission, requiring a range of specialist skills.

The potential for further investment was an enhancement, introduced under the terms of the licence which the Commission awarded to Camelot in 2009, following a rigorous competition process.

Chief Executive of the Commission, Mark Harris said:

“We will now work to carefully evaluate this proposal. We will reach a decision following a thorough consideration of whether the proposal is in the best long-term interests of the National Lottery, and the thousands of good causes all around the country that benefit from National Lottery funding.”

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Notes for editors
1. The National Lottery Commission is the non-departmental public body set up on 1 April 1999 to regulate the National Lottery. It ensures that players are treated fairly, the Nation’s interest in the Lottery is protected and, subject to that to secure as much money as possible for good causes.

2. The National Lottery Commission awarded the 10 year licence to operate the National Lottery to Camelot in 2009, following a rigorous licence competition process. The licence has now been in operation for two full years, and the increased generosity of the licence has resulted in over £180 million extra being raised for good causes in that time.

3. Section 23 of the licence provides that by mutual agreement, the Licence may continue for a maximum period of five years on the same terms a set out in the Licence or on such terms as the Licensee and the Commission may agree.

4. The proposal is (in summary) for an investment from the operator, Camelot, to increase the number of National Lottery terminals by 8,000 from around 28,800, to 36,800. Camelot has proposed that they would recover this investment through an extension to the licence of five years. The licence would then be extended from 2019 to 2024.

5. The Commission will now consider the proposal and then either accept, reject or propose modifications to the proposal. Any modifications would then be the subject of a discussion with Camelot.

6. The Commission is considering how much work will be required to complete the process but it is likely to be significant. On current expectations we expect to make a decision by the end of the year.

7. To subscribe to NLC press releases please contact Jonathan Blay 020 7016 3431 or email j.blay@natlotcomm.gov.uk