DCMS to “explore opportunities for innovation” with new UK Lottery licence
Department cites “significant untapped potential” in National Lottery
The Department for Digital, Culture, Media and Sport (DCMS) has said it will aim to ensure the National Lottery remains “relevant and attractive to all parts of society” as it looks to award its fourth operator licence.
The DCMS said the “context” for the National Lottery had changed since the award of the third licence to Camelot, and that it was looking to “opportunities for innovation and flexibility” with the next tender.
As part of the process, DCMS has issued an early engagement notice letter to lottery operators, inviting them to register their interest in competing for the National Lottery licence.
In its letter, the DCMS hailed the positive development of the National Lottery, which generated over £6.9bn in ticket sales during 2017, but said it believes there is “still significant untapped potential for growth” in the lottery offering.
The Gambling Commission announced the commencement of the initial tender process in November, establishing a team to manage the process together with an expert advisory group to help shape the design of the competition of the future lottery. As part of its regulatory duties it will co-ordinate the process on behalf of the DCMS.
Current operator Camelot has held the National Lottery licence since its inception in 1994 but has come under fire in recent years for diminishing ticket sales and consequently, returns to good causes.
However, Camelot recently reported a £77.4m increase in its digital sales via its mobile lottery app for the first six months of 2018. The operator also confirmed the roll-out of a new Annuity style lottery game.
Operators including Lottoland, Scientific Games, the Health Lottery and the Northern and Shell group are all expected to submit bids for the licence.
The engagement process ends on 2 January 2020.