Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, whether the Gambling Commission takes into account potential national security implications when awarding National Lottery licences.

The process of awarding the licence to run the National Lottery is governed by the National Lottery etc. Act (1993)​​. Under the Act, the Gambling Commission has a duty to ensure that any person who either runs or benefits from the running of the National Lottery is fit and proper and that the Licensee’s operation meets high standards of propriety. The award of the licence is distinct from an acquisition - at no point is the operator appointed to run the lottery the owner of the National Lottery as an asset. The 4th National Lottery licence is due to begin in 2024.

During the competition to run the 4th National Lottery licence, the Commission carried out fit and proper tests on all 4 final stage applicants. Fit and proper checks examine the identity, integrity, criminality and financial standing of those who run, or benefit from running, the National Lottery, or are applying to do so. As part of its duties under the Act, the Commission cannot award the licence unless it is satisfied that the proposed licensee is fit and proper. The Commission is also required to revoke a licence if it becomes satisfied that the licensee is no longer, or indeed never was, fit and proper.

Following the Russian invasion of Ukraine, the Gambling Commission, as a responsible regulator, sought assurances that none of the final stage applicants were impacted by sanctions against the Russian regime. The Commission was satisfied that this was the case.

In addition, following the announcement of Allwyn as the preferred applicant in March 2022, standard vetting checks (Baseline Personnel Security Standard or BPSS level) are being carried out as planned, on behalf of the Commission, by UK Security Vetting on key people connected with the proposal. These include Qualifying Direct Shareholders, which is any person who holds at least 5% interest in the licensee. Full details of what is included in a BPSS level check is outlined on the UKSV website.