UK MPs Question How Allwyn Can Increase Funds for Good Causes

Early in 2022, the gambling regulator in the UK, the Gambling Commission, awarded the fourth license for the UK National Lottery to Allwyn, a company that emerged as the successful bidder for the 10-year license. Awarding the license to Allwyn meant that Camelot, the company that operated the Lottery since its inception in 1994, would no longer be overseeing its operations.

One of the promises Allwyn made in order to win the fourth UK National Lottery license was to increase the proceeds to Good Causes. Under Camelot, the Lottery raised more than £47 billion ($59.4 billion) to Good Causes for the last three decades. Annually, proceeds to Good Causes were approximately £17.9 billion ($22.6 billion), a number which Allwyn vowed to double to £38 billion ($47.9 billion).

The transfer of the fourth Lottery license from Camelot to Allwyn was completed at the start of this month. Now, a new report released by the Guardian reveals that the all-party parliamentary group (APPG) on gambling-related harm, asked the gambling regulator about assurances that Allwyn will adhere to responsible gambling standards while at the same time raising the proceeds generated to Good Causes.

The publication obtained a letter addressed to the Commission where the APPG asked the gambling regulator about the methods for control that would ensure the compliance of Allwyn with the regulations and its promises. The Commission was asked “what action is being taken to ensure that returns to Good Causes are prioritized and increased under the new contract.”

UKGC Said Allwyn Is Expected to Increase the Proceeds to Good Causes

Ahead of the transfer of the Lottery license, back in January, the Commission, through the voice of the executive director for the 4th National Lottery Competition, John Tanner, commented on the topic. He said that the proceeds toward Good Causes are expected to increase over the next decade under the new license. At the time, Tanner said Allwyn anticipates presenting new products that will ultimately increase the returns to Good Causes.

Yet, earlier this month, Allwyn confirmed it secured a 70% stake in the leading supplier of digital e-Instant and instant win games, Instant Win Gaming (IWG). The so-called instant win games, produced by IWG, are associated with increased rates of problem gambling, something that the APPG is concerned about. As a result, the group asked the Gambling Commission how it plans to ensure that “social responsibility is kept at the heart of the lottery as Allwyn diversifies into areas that are associated with higher level of gambling-related harm.”

Another topic under scrutiny in the letter is alleged ties between Allwyn’s owner, Karel Komárek, the famous Czech billionaire, and Russia.