Camelot penalty is a £3 million fine for paying out fraudulently on a spoiled ticket. The mistake was made 6 years ago and only came to light this year.

Camelot Penalty levied by UK Gambling Commission

Camelot PenaltyAgain, Camelot who run the UK National Lottery has again been fined by the UK Gambling Commission. The fine is for paying out £2.5 million pounds on a spoiled lottery ticket during 2009. It seems a bit harsh but big responsibility comes with running a national lottery.

Camelot has been fined twice before by the UK regulator. This time their fine was £3 million pounds for paying out when they should not have done so. The fraud was investigated by Hertfordshire Police who worked alongside the Gambling Commission.

The fine may seem hefty but it was determined so that good causes will not lose out due to Camelot’s loss.

Sarah  Harrison, Chief Executive of the UK Gambling Commission said the priority was to ensure the UK National Lottery was run fairly and that players were adequately protected. She also said controls have been put in place to ensure this sort of mistake does not happen again.

Camelot has been fined twice before. They received a £100,000 fine for miscalculating a Lotto jackpot prize and £300,000 for publishing incorrect results on their website.

Where the lottery money goes.

Camelot was trusted with running the UK National Lottery back in 1994 so they have been trustees for more than 20 years. They have created 4,400 UK millionaires, 95% of the money wagered is given back to winners or used to fund social projects. The average number of grants give to social projects in each UK post code are is 160. For each 1 pound invested 50 pence is returned to players, 28 pence is given to good causes. Camelot take 5 pence operating costs and profit and the Government take 12 pence. The remaining 5 pence goes to the retailer by way of commission.

How much is generated

The UK National Lottery generates a revenue of £5.5 billion pound a years and Camelot retain 5% which is almost £2.8 million. This Camelot penalty will make a major dent in their operating profit. The payment terms are not known but that is a lot of money for a Lottery operator to lose.

Camelot has been fined three times for similar offences, however the latest penalty is the largest dealt to the lottery operator to date. In July, a £300,000 fine was issued after the publishing of inaccurate Lotto Millionaire raffle results on their website. In addition, a miscalculated Lotto Jackpot prize previously resulted in a £100,000 penalty.

Camelot have egg on their face over this incident but to be fair to them the UK Gambling Commission should have discovered the mistake earlier. The effect of this penalty could then have been factored in sooner.

Read about unclaimed UK Lottery prizes.

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