The National Lottery in the UK is operated by Camelot. The fully licensed operator has just had to field a rather hefty fine from the UK Gambling Commission, however.
What happened?
Back in 2009 a lottery ticket that had apparently been damaged deliberately had been handed in to claim a prize worth £2.5 million. Camelot processed the claim and eventually paid out the money. As it turns out they should not have done so.
The fraudulent prize claim only came to light last year and consequently Camelot informed not only the UKGC but also the police. How the case came to light is not entirely clear however, but the operator acted immediately.
UKGC investigated
The case was handed over to the UKGC for investigation and the commission found that Camelot hat violated three aspects of their operating license, one of which was related to terms controlling their databases and information sources.
The gambling commission assured, however, that Camelot has not been found to commit fraud in this instance and is not suspected to have committed fraud in any other case. The incident with the damaged ticket appears to have been isolated and the UKGC confirmed that there were no systematic failings on behalf of the operator.
At the conclusion of the investigation a few days ago it was determined that Camelot had to pay not only a fine of £500,000 as a penalty, but that they also had to pay £2.5 million on top of that, which is the sum that had originally been paid out on the fraudulent ticket. That money is supposed to go to charitable causes, which is what would have happened with it had it not been paid out seven years ago.
Camelot repentant
Camelot acknowledged the not only the fine but the failings in their operating procedure and assured the UKGC that their system has undergone improvements. Changes have now been implemented that will prevent similar incidents in the future and that ensure that the processes regarding prize payouts and necessary controls have been strengthened.