OLDF Unclaimed Prizes

Background
The licence granted to Camelot under Section 5 of the National Lottery etc Act 1993 (as amended) requires Camelot to ensure that payments are made to the NLDF and OLDF by 3pm on the date that they fall due.  This includes payments in respect of prizes that have not been claimed within the time period allowed under the relevant game rules (unclaimed prizes).

Any payments made after 3pm on the due date are subject to daily penalty interest at 3% above base rate.

Condition
Condition 18(1) and 18(2) of the Section 5 Licence

Description
On 13 February 2007, Camelot underpaid the OLDF by £20,440 in respect of unclaimed prizes.  This was due to human error, compounded by a weakness in the report sign-off process. The shortfall was transferred to the OLDF on 27 February 2007.

Due to an oversight, Camelot failed to pay penalty interest on time in accordance with the Section 5 licence.  This was highlighted by the Commission and Camelot subsequently paid the interest due.

Regulatory Action
Having written to Camelot and considered its response, the Commission concluded that there had been a contravention of the licence requirement to pay sums due to the OLDF on the due date, and a contravention of the licence requirement to pay penalty interest on time in respect of the subsequent late payment.  These licence breaches were recorded on 8 June 2007.

Outcome
Camelot is putting additional measures in place to ensure the accuracy of unclaimed prize payments in future.

It is a key concern for the Commission that all sums due to the NLDF and OLDF should be paid in a proper and timely manner.  Due to the payment of penalty interest, the Commission is satisfied that there was no loss to the OLDF as a result of this incident.