National Operator Camelot have received their third fine from The Gambling Commission.
National Lottery operator Camelot has been fined £3 million, after a fraudulent ticket payout in 2009.
Camelot’s actions were deemed a breach of licence by the Gambling Commission after it uncovered that a pay-out had been given in spite of a damaged ticket. The pay-out reportedly totaled £2.5 million, however investigations have yet to conclude where the funds went. Hertfordshire police, who were tasked with the investigation, have since concluded their efforts alongside the Gambling Commission.
The commission’s chief executive, Sarah Harrison, said its priority was to ensure the National Lottery was run fairly, and that players were adequately protected.
“Camelot’s failures in this case are serious and the penalty package reflects this,” she said.
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“Importantly, the package also ensures that good causes will not lose out as a result of Camelot’s licence breach.
“Lottery players can feel reassured that our investigations have found no evidence of similar events happening and that controls are in place today to mitigate against future prize payout failings of this type.”
The company have since apologised for the failure. Andy Duncan, the chief executive of Camelot, stated:
“We accept that, at the time, there were some weaknesses in some of the specific controls relevant to this incident and we’re very sorry for that. We’ve strengthened our processes significantly since 2009 and are completely confident that an incident of this nature could not happen today,”.
A spokesperson for the Department of Culture, Media and Sport emphasised the importance of the upkeep of the National Lottery’s integrity, approving the Commissions action. They commented:
“The integrity of the National Lottery is absolutely paramount and it is crucial that both players and returns to good causes are protected and not at risk from fraudulent activity. It is right that the Gambling Commission has acted in this case and assured us that Camelot has put controls in place to mitigate against any similar licence breach in the future.”
Camelot has been fined three times for similar offences, however the latest penalty is the largest dealt to the lottery operator to date. In July, a £300,000 fine was issued after the publishing of inaccurate Lotto Millionaire raffle results on their website. In addition, a miscalculated Lotto Jackpot prize previously resulted in a £100,000 penalty.
