The UK National Audit Office (NAO), Parliament's spending watchdog, has opened a review of the fourth National Lottery licence. It will examine how the Gambling Commission and the Department for Culture, Media and Sport designed and awarded the licence, how they oversaw the transition from Camelot to Allwyn in February 2024, and how they are preparing to support delivery until the licence ends in 2034 and to inform future competitions. A central question is whether oversight is maximizing returns to good causes, which reached about £1.7 billion in 2025. The NAO expects to report in spring 2027.
- The NAO is reviewing the design and award of the fourth National Lottery licence, the Camelot-to-Allwyn transition and preparations for future licensing.
- Allwyn has operated the lottery since February 2024 under a 10-year licence running to 2034.
- Good-causes returns were about £1.7 billion in 2025, and £377.2 million in April to June 2026, lower than the same quarter in earlier years.
- The legal fight over the award is over: the High Court dismissed The New Lottery Company's claim and the Court of Appeal refused permission to appeal.
- The report, due in spring 2027, will shape how the next lottery competition is designed.
The UK's National Lottery is getting an independent check-up. The National Audit Office (NAO), which scrutinizes public spending for Parliament, has started a review of the fourth National Lottery licence: how it was designed and awarded, how the handover from Camelot to Allwyn was managed, and whether the regulator's oversight is getting the best possible return for good causes.
What the NAO will review
The review covers three things. First, how the Gambling Commission and the Department for Culture, Media and Sport (DCMS) designed and awarded the fourth licence. Second, how they oversaw the transition from Camelot to Allwyn. Third, how they are preparing to support delivery of the licence until 2034 and to inform the design of future lottery licensing. The NAO expects to report in spring 2027. It examines value for money and process; it does not reopen the award itself.
The fourth licence
The licence runs for ten years and is the fourth since the National Lottery started in 1994, and the first not won by Camelot. Allwyn won the Gambling Commission's competition against Sisal and Northern & Shell's The New Lottery Company (TNLC), then bought Camelot, and took over operation in February 2024.
The award was contested for years. TNLC challenged the Gambling Commission's decision and its handling of the competition. In April the High Court dismissed the claim, and the Court of Appeal later refused permission to appeal, ending TNLC's chance of compensation. With the litigation over, the NAO review is the main remaining scrutiny of how the competition was run.
The good-causes question
Returns to good causes are the measure the review will be judged on. Allwyn's winning bid committed to growing weekly good-causes funding from about £30 million toward £60 million over the licence. That target has not yet been reached: contributions in 2025, Allwyn's first full year, were about £1.7 billion. Gambling Commission statistics show £377.2 million raised between April and June 2026, lower than the same period in previous years. The NAO will look at whether the Commission's oversight is pushing returns as high as the licence allows.
Why it matters beyond the UK
Lottery licences are among the largest concessions governments award, and the way the UK tendered and supervised this one is closely watched by other regulators that run or are designing lottery competitions. Many European countries keep lotteries as a state monopoly or exclusive concession even after opening online casino and betting to licensed competition; Finland, Belgium and Slovakia are recent examples, and our EU regulated markets comparison shows where each country draws the line.
For operators and suppliers, the practical lesson is that a large concession win is the start of scrutiny, not the end. Performance against bid commitments, transition management and the regulator's oversight are all reviewed in public, and the findings feed directly into the next competition.
Frequently asked questions
What is the National Audit Office reviewing?
How the Gambling Commission and DCMS designed and awarded the fourth National Lottery licence, how they oversaw the move from Camelot to Allwyn, and how they are preparing to support the licence through to 2034 and inform future licensing.
Who runs the UK National Lottery?
Allwyn UK, which took over from Camelot in February 2024 after winning the Gambling Commission's competition for the fourth licence against Sisal and The New Lottery Company. Allwyn later acquired Camelot.
How much does the National Lottery raise for good causes?
About £1.7 billion in 2025, Allwyn's first full year. Allwyn's bid committed to growing weekly returns from about £30 million toward £60 million over the licence.
When will the NAO report?
The NAO expects to publish its findings in spring 2027.
Does the review affect the licence itself?
No. The NAO examines value for money and how public bodies managed the process; it does not reopen the award. Its findings can, however, shape how the Gambling Commission oversees the licence and designs the next competition.
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