Camelot accepts £1.15 million penalty for National Lottery failures

Camelot accepts £1.15 million penalty for National Lottery failures

Thursday, August 23, 2018 Posted by Luke Massey
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Technology and security failures were identified in the investigation

Camelot will pay a £1.15 million penalty package for failings, which included a fault within a mobile app and publishing an incomplete list of raffle prizes following a Lotto draw.

The penalty, which will be paid to National Lottery good causes, was announced by the Gambling Commission, after the regulator completed its historic investigation into failings at Camelot.

The 18-month investigation, launched to determine whether Camelot was complying with its ‘fit and proper’ obligations under its Section 5 licence, came about because failings relating to the governance, risk and control framework were identified at the National Lottery operator.

To ensure Camelot took swift action to improve its levels of compliance with the licence conditions, the Commission initially put the investigation on hold and directed Camelot to focus its efforts and resources on implementing solutions.

Camelot’s response was a programme of activity called the ‘Operational Excellence Programme’ (OEP), while the Commission directed that Camelot conduct a Board Effectiveness Review (BER).

Richard Watson, Gambling Commission Executive Director, commented: “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 reoccurrences. It is crucial that the National Lottery is run fairly, safely and with integrity and we’ll continue to hold Camelot to account."

A Camelot spokeswoman said: “We accept the outcome of the Gambling Commission’s investigation in respect of a number of incidents dating back to 2016.

“As part of the regulatory settlement, we have accepted the historical licence breaches identified, provided voluntary undertakings and will make a payment to National Lottery Good Causes in lieu of a financial penalty.

“While we have always sought to run The National Lottery to the highest possible standards, we accept that, at the time of these incidents, our standards in certain areas weren’t as rigorous as they should have been and for that we’re sorry.

“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.”

Totally Gaming says: The commission found problems sufficiently serious to warrant a financial penalty included incomplete online results for an Olympic medal prize promotion and incorrect prize outcomes given by the mobile results checker or QR scanner. Camelot has accepted the outcome and recognised that it fell below standards, but stressed that these breaches were historical and that its proactive response to the subsequent investigation should eliminate future issues.

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