Camelot has lost its license to run the UK National Lottery to a Czech-based group after 28 years as the sole provider.
Allwyn Entertainment was named the preferred applicant for the fourth license given out by the National Lottery, which is due to begin in 2024.
Czech-based Allwyn was picked ahead of Camelot, Sisal Spa and The New Lottery Company.
“Allwyn has committed to investment in the National Lottery that is expected to deliver growth and innovation across the National Lottery’s products and channels, resulting in increased contributions to good causes, subject to the protection of participants and propriety,” the Gambling Commission said in a statement.
Allwyn said it will get to work immediately, with the group expected to accelerate the online presence of the National Lottery.
Camelot, named as the first reserve, announced record first-half financial year national lottery sales in November, selling £3.9bn worth of lottery tickets in the six months to 25 September.
The company generated £1.6bn in online sales during that time, accelerated by Coronavirus (COVID-19) lockdowns.
“I’m incredibly disappointed by today’s announcement, but we still have a critical job to do – as our current licence runs until February 2024,” said Camelot CEO Nigel Railton.
“I’m enormously grateful to our 1,000-plus employees who have been unwavering in delivering record-breaking results during the current licence.
“And I know they remain absolutely determined to build on our four and a half years of successive sales growth – which has seen us achieve record sales in each of the last two years, resulting in the best-ever returns to Good Causes from ticket sales last year.”
Railton said the company was “carefully reviewing” the Gambling Commission’s decision before deciding on next steps.