Camelot is facing some struggles connected to the UK National Lottery. Shortly after it was announced that it will lose its lottery license, the company has now been fined by the UK Gambling Commission for 3 failures that are connected to its mobile app.
The Breaches Were Significant and the Total Fine Exceeds $4 Million
The breaches on its mobile app affected thousands of players and that is why the UKGC decided to issue a £3.15 million ($4.1 million) fine to Camelot. Andrew Rhodes, the chief executive of the UKGC stated that even though Camelot has done improvements in its app, the UKGC has to make it clear that any breaches “will be met with consequences.”
Rhodes added that all operators should take note of this because any operator that does not meet the standards will be handed a fine and the UKGC will not hesitate to do so. The commission added that the money from the fine will go to good causes.
A spokesman for Camelot also shared some information on the developments. The spokesman apologized for the circumstances and said that the operator accepts the outcome of the investigation conducted by the UK Gambling Commission.
He concluded by saying that Camelot is happy that the UKGC made it clear that these breaches were not negligent.
The Three Failures by Camelot, Explained
Camelot failed to meet the standards in three separate cases. First up, it failed to inform around 20,000 participants that their tickets were non-winning when they scanned them with a QR scanner. These failures took place between November 2016 and September 2020.
Next up, 22,210 participants in the National Lottery purchased one ticket via the mobile app, but the app charged them for 2 tickets. The players received 2 tickets, but this is considered a failure since they only asked for one. These individuals have been refunded or rewarded.
The third, and arguably most serious failure is that Camelot sends marketing messages to a total of 65,400 participants that have been identified by the operator as prone to developing gambling harm or have already self-excluded. Even though they were not permitted to use the Camelot mobile app, they still received promotional material.
Camelot Will Lose Its National Lottery License after More than 20 Years
Recently, the UK Gambling Commission stated that its main candidate to gain the National Lottery license is Allwyn Entertainment. That means that Camelot will lose its right to the lottery after operating it for nearly 3 decades.
The operator originally gained the license in 1994 and even though there were some rumors that it will re-gain the license, the UKGC was quick to shut them down.
Even though Camelot will be the backup choice, its CEO, Nigel Railton, stated that he’s disappointed with UKGC’s decision. The new license will be valid for 10 years.