Prize Payment Security System

Condition breached

Condition 2 of the Section 5 licence

Description

Camelot has failed to make a periodic assessment of changes required to the system enabling payments to be made to players in the event of licence revocation (for example, in the case of insolvency). As a result, the version of the system currently available does not meet the full system capability requirements.

Background

Camelot arranged with OFLOT in 1997 for a third party to hold software for paying outstanding prizes and making refunds on tickets. Under a procedure approved under Condition 2, Camelot is required to carry out periodical reviews as new game developments are implemented or changes are made to existing gaming systems.

Failure to undertake these reviews has meant that the system does not cover new games introduced from November 2000.

Regulatory action

The Commission has investigated the issue, invited Camelot to comment and considered its response. As well as recording a licence breach, the Commission has fined Camelot £50,000. This reflects the importance of ensuring that players’ interests are protected in all situations.

Outcome

The licence provision is designed to meet a contingent situation and no players have been affected by the breach. Camelot has appointed GTECH to develop a new system for paying outstanding prizes and making refunds that is based on standard gaming software. An interim solution is being adopted until the full system is in place.