The National Audit Office (NAO) has opened an investigation into The National Lottery to determine whether the product is delivering on its pledges to donate to charitable causes.
Allwyn took over operation of The National Lottery in 2024, having been awarded the licence by the Gambling Commission (GC) in 2022.
The operator was granted the licence amid competition from former licensee Camelot and others, with the contract running until 2034.
Allwyn securing the fourth National Lottery licence marked the first change in National Lottery operator since its inception in 1994.
Part of Allwyn’s bid for the licence included a pledge to donate £38bn to good causes over the next decade, equivalent to £3.8bn per year.
This was later revised to £3.2bn per year, with Allwyn seeking to double the amount of charitable donations from £30m a week to £60m.
Figures released by the GC showed The National Lottery’s contributions to good causes in 2025 amounted to £1.7bn, less than half of Allwyn’s initial target.
Subsequent figures released by the regulator in August showed contributions to good causes came to £377.2m between April and June this year, which was the lowest figure from The National Lottery in nearly 10 years.
The NAO is the UK independent public spending watchdog.
Regarding the rationale for the investigation, the NAO stated: “This study will examine whether the Gambling Commission has designed, implemented and overseen the fourth National Lottery licence effectively to maximise returns to good causes and deliver long-term public value.
“It will examine whether the Gambling Commission and the Department for Culture, Media and Sport have designed and awarded the fourth licence to support the successful delivery of The National Lottery, overseen the transition to the new operator and implementation of the fourth licence effectively, and identified and applied lessons from the fourth licence to support delivery through to 2034 and inform future lottery licensing arrangements.”
A Gambling Commission statement read: “We welcome the NAO’s study of the fourth National Lottery licence as part of its routine scrutiny of major public programmes, and will support it fully.
“It’s for the NAO to determine its scope and findings, so it wouldn’t be appropriate to comment further while its work is underway.”
Allwyn rolled out a Powerball game in July 2026, which the operator said would raise an additional £1bn for good causes in the UK over the next five years.
Last month, the government opened a consultation regarding outlawing third-party operators from offering betting on the Powerball product.
Allwyn underwent a major tech overhaul of The National Lottery product, which was completed in January, forming part of the Pan-European lottery operator’s £400m investment into the brand.
The GC’s awarding of the licence to Allwyn was heavily contested by Richard Desmond, owner of rival bidder The New Lottery Company (TNLC).
Desmond launched a legal battle against the GC in June 2024, with the High Court siding with the regulator in April 2025.
In July, Desmond’s appeal suffered another blow after the Court of Appeal sided with the High Court’s original decision.
EGR has contacted Allwyn for comment.
The post National Lottery facing probe by the National Audit Office first appeared on EGR Intel.
Watchdog opens investigation to determine if the Allwyn-run product “maximises returns to good causes and delivers long-term public value”
The post National Lottery facing probe by the National Audit Office first appeared on EGR Intel.