The National Audit Office (NAO) has opened a study into the fourth National Lottery licence, examining whether the UK Gambling Commission (UKGC) and the Department for Culture, Media and Sport (DCMS) designed, awarded and oversaw the 2024 to 2034 licence held by Allwyn effectively. The NAO expects to report in spring 2027.
The study is listed on the NAO’s work-in-progress page for the licence, last updated on 12 October 2026. Simon Bittlestone, a Director at the NAO, leads the work, with Callum Saunders as study manager.
Scope of the National Lottery licence review
The audit office will test whether the licence is set up to maximise returns to good causes and deliver long-term public value. It has set three lines of inquiry for the UKGC and DCMS:
- whether the fourth licence was designed and awarded in a way that supports successful delivery of the National Lottery;
- whether the transition to the new operator and the licence’s implementation were overseen effectively;
- whether lessons have been identified and applied for the rest of the term to 2034 and for future lottery licensing.
The UKGC regulates the National Lottery under statutory duties to ensure it is run with propriety and that participants’ interests are protected. Subject to those two duties, it must maximise the money raised for good causes such as sport, arts, heritage and community projects.
A new model and the first change of operator
For the fourth licence, the UKGC introduced a new operating model meant to raise returns to good causes and give the licensee more room to innovate. The Commission chose Allwyn Entertainment Limited in 2022, according to the NAO, ending Camelot’s run as the only operator since the Lottery’s launch in 1994. The licence began on 1 February 2024.
The UKGC’s annual report for 2024 to 2025 says the new licence uses an incentive mechanism that ties good-cause contributions more closely to the licensee’s profits. The same report states that Allwyn did not deliver full functionality by February 2025, as its contract required, and that the Commission opened an enforcement investigation. In May 2025 the UKGC board approved extending the transition programme to December.
According to the report, the National Lottery has raised more than £50bn for good causes since 1994.
Allwyn’s transition and the legal challenge
Allwyn completed its technology overhaul in Q1 2026, when Allwyn’s UK GGR fell 7% to €942m, according to the company’s results. Andria Vidler stepped down as Chief Executive of Allwyn UK after the transition milestones, and Phil Walker became interim CEO on 7 September 2026.
The licence award itself has survived a court challenge. On 17 April 2026 the UKGC announced that the High Court had dismissed all claims brought by The New Lottery Company (TNLC) and Northern & Shell. Mrs Justice Joanna Smith rejected arguments that the licence should have gone to TNLC and that the arrangements with Allwyn were modified impermissibly after the competition. The Court of Appeal later refused TNLC permission to appeal.
Next steps
The NAO’s findings are scheduled for spring 2027, when the fourth licence will be about three years into its 10-year term. The UKGC’s 2024 to 2025 annual report described its enforcement investigation into the missed February 2025 deadline as ongoing, and Allwyn said in August that it had started a search for a permanent Chief Executive of its UK business.
Source: National Audit Office
