Camelot Fined £3.15m by United Kingdom Gambling Commission Due to Mobile App Inadequacies
The United Kingdom Gambling Commission (UKGC) has issued Camelot a £3.15m fine just days after it was announced the operator is likely to lose its National Lottery license to rival bidder Alwyn after 28 years.
Dating back to 2016, the regulator found flaws regarding the National Lottery mobile app where users were wrongly informed a winning ticket was not a winner, players using the app were charged for multiple tickets when they only requested one and the app sent promotional material to customers who had previously self-excluded.
Each of the above is an infringement on the National Lottery Act 1993.
Issues with Mobile App
It’s estimated around 20,000 players were informed their winning ticket was in fact a losing ticket after scanning the PR Code between 2016 and 2020.
22,000 players who bought one ticket had been charged and received two tickets. The additional tickets were refunded, or any winnings were paid out.
Players who had signed up with Gamstop, a charity that helps customers restrict their gambling or help with gambling addiction received marketing messages. Over 60,000 players who had signed up with Gamstop were able to purchase a lottery ticket.
The operator of the National Lottery confirmed to the UKGC when a player signed up to the app, they had a choice to receive or block notifications. If a player had opted to decline notifications, they would receive none from Camelot or any third parties.
Camelot realised there were issues with the QR code and notified the regulator in September 2020. The QR Code enabled customers to scan the code on their tickets to verify whether it was a winner or a losing ticket. Camelot disabled the function when customers were scanning winning tickets and the app displayed a non-winning message.
In respect of the app issues, it’s estimated between £48,000 and £68,000 worth of winnings were unclaimed after the app wrongly displayed a winning ticket.
A spokesperson for the UKGC Andrew Rhodes said, “We are reassured that Camelot has taken steps to make sure their National Lottery App is fit for purpose. However, we must caution Camelot that any failings on their duties will be met with consequences.”
Warning to Operators
He added this was a warning to operators who failed to comply with the regulator’s requirements, stating investigations and fines will be issued if operators are found to be non-compliant.
The £3.15m fine is the second blow Camelot faces after the UKGC reported the license will transfer to a rival company with Alwyn looking like the firm favourite. Camelot has operated the National Lottery for the past 28 years.
