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National Audit Office looking into Gambling Commission lottery oversight

Questions about National Lottery funding for good causes have renewed attention on oversight of the UK’s lottery sector.

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UK National Lottery investigation
Key Points
According to the Telegraph, the National Audit Office has launched a review of the National Lottery amid concerns over declining sales and contributions to good causes
Global Gaming Insider understands that Allwyn was surprised by the coverage, as the NAO report focuses primarily on regulatory oversight

The UK National Audit Office (NAO) has launched a review of the National Lottery, according to the Telegraph, amid concerns about declining sales and contributions to good causes under the current operator, Allwyn.

However, Global Gaming Insider understands that Allwyn was surprised by the coverage, as the NAO report mentions the operator only briefly and focuses primarily on regulatory oversight.

Indeed, the NAO has outlined three areas for review: whether the Gambling Commission established the right conditions for the Fourth Licence, how effectively it oversaw its implementation and how the Commission and DCMS could improve future lottery licensing.

The Telegraph did report that the review could increase scrutiny of the Gambling Commission, which awarded the National Lottery licence.

A spokesman for the Gambling Commission stated: "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 under way.”

Still, it also suggested that Parliament’s Public Accounts Committee could call current and former Allwyn executives, alongside Commission representatives, to address the reported shortfall against the operator’s original commitments.

Nevertheless, Global Gaming Insider understands that, despite the media coverage, there is no specific NAO investigation into Allwyn itself.

Allwyn secured the fourth National Lottery licence in 2022 after pledging to increase contributions to good causes from nearly £18bn ($23.6bn) under predecessor Camelot to £38bn over the following decade.

According to Gambling Commission figures cited by the Telegraph, contributions to good causes totalled £1.7bn last year. The publication also reported that donations fell between April and June, raising further questions about progress towards Allwyn’s commitments.

Allwyn began operating the lottery in February 2024 under a 10-year licence that replaced Camelot’s three-decade tenure.

The operator is undertaking a wider overhaul of the lottery’s retail and digital systems. Changes during 2026 have included upgrades to the website and app, revisions to Lotto and the UK introduction of Powerball.

Good to know

The National Lottery is Britain’s largest source of charitable funding, supporting projects across sport, the arts, heritage, health, education and the environment

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