Camelot is set to lose the licence to run the National Lottery after nearly three decades.
The company said it was “incredibly disappointed” after the Gambling Commission announced the Czech-based company Allwyn Entertainment as its preferred candidate to run the lottery from 2024.
Allwyn already operates lottery competitions in the Czech Republic, Austria, Greece and Cyprus.
It beat Camelot, Sisal Spa and the New Lottery Company in the bid for the licence, which will last until 2034. The children’s charity Barnardo’s was one of the partners in the bid led by Sisal.
This will be the fourth time a licence for running the lottery has been awarded. The previous three were all held by Camelot. The National Lottery has raised £45bn for good causes since it started in 1994.
The Gambling Commission said the process of choosing the next provider was in a “legal standstill” stage, during which all applicants could consider the outcome of the competition and provide feedback to the commission if necessary.
Nigel Railton, chief executive of Camelot, said: “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. We’re now carefully reviewing the Gambling Commission’s evaluation before deciding on our next steps.”
He thanked Camelot’s staff for providing “record-breaking results” in the past eight years.
The Labour Party has called on the government to investigate any ties between Allwyn and the Russian state before its confirmation as licence holder, given the “reported links between Allwyn and Gazprom”, Russia’s state-owned energy company.
The Gambling Commission has already said it was “satisfied that no application is impacted by sanctions related to the conflict in Ukraine”.
Keith Mills, who chaired Allwyn’s successful bid, said: “The National Lottery is a national treasure and we are honoured to have been chosen as its future custodian.
“With the Gambling Commission having put its trust in us, we can immediately start to enact our exciting plans to deliver the National Lottery back to the heart of our country.
“We will do this by rekindling the meaning the National Lottery has for each of us, whether as individuals or as part of the communities we live in, whether we play the National Lottery or not.”
Allwyn also said in a statement that its selection was “a welcome signal to businesses in Europe who are considering investment in post-Brexit Britain”.
Andrew Rhodes, chief executive of the Gambling Commission, said: “Our priority was to run a competition that would attract a strong field of candidates. Having received the most applications since 1994, it is clear that we’ve achieved just that.
“I am confident that the success of the competition will lead to a highly successful fourth licence – one that maximises returns to good causes, promotes innovation, delivers against our statutory duties, and which ultimately protects the unique status of the National Lottery.”