Camelot fined £1.5m by the UK Gambling Commission
The UK Gambling Commission (UKGC) has issued Camelot, the operator of the UK lottery, a total of £1.15m in fines for massive failings in governance, risk and control framework.
The fine follows an investigation by the Commission which began in 2016 with an examination of whether Camelot was fulfilling compliance obligations under its Section 5 licence.
That investigation was put on hold by the UKGC after Camelot took immediate action to comply via the creation of an Operational Excellence Programme and followed the Commission’s order to conduct a Board Effectiveness Review.
The investigation was resumed in November 2017 when the Commission felt these two operations had made sufficient progress.
In total, five breaches of licensing regulations were uncovered and penalised by the Commission.
Firstly, Camelot was found to have published incomplete results from a promotion on its website. The second related to violations by the company’s mobile results checker and QR scanner, with both showing incorrect prize outcomes.
Further failings were found in how Camelot processed direct debit information, information and physical security measures and controls related to the Post Office.
Along with the fine, the licence breaches have been recorded by the Commission and Camelot must take action regarding the Post Office, KLS and security measures.
There were also a further ten breaches of licence regulations on which the Commission chose not to take further action.
Speaking about the fine, Richard Watson, executive director at the UKGC, said:
Camelot has taken a number of steps to rectify the issues and given us assurances that they now have the right processes in place to prevent re-occurrences. It is crucial that the National Lottery is run fairly, safely and with integrity and we’ll continue to hold Camelot to account.– Richard Watson, Gambling Commission executive director
In a public statement, Camelot said:
We’ve since proactively carried out an extensive programme of work to strengthen our controls, processes and governance arrangements to ensure they are all fit for purpose – and welcome the Commission’s recognition of the work we’ve carried out to mitigate the risk of future issues.– Statement, Camelot
You can read the Commission’s statement and regulatory settlement in full at the Gambling Commission’s website.