Czech billionaire to take control of National Lottery with pledge to cut ticket prices

A Czech billionaire is to take control of the National Lottery from Camelot after winning a closely-fought bidding process with plans to halve the price of tickets and raise more money for good causes.

Karel Komarek’s gambling empire, known as Allwyn, has been selected as “preferred bidder” for the lottery by the Gambling Commission.

The surprise decision comes just days after Allwyn and parent company Sazka launched a High Court challenge against the UK regulator, in a sign they were expecting to lose. Allwyn’s bid was led by Sir Keith Mills, the inventor of the Air Miles and Nectar loyalty card schemes, who said the group would immediately begin enacting “exciting plans to deliver The National Lottery back to the heart of our country”.

He said: “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 has reportedly proposed to increase the amount given to good causes by 135pc, while slashing ticket prices from £2 to £1 and introducing two draws on one night.

Mr Komarek, who has an estimated net worth of $7.8bn (£5.9bn), has sold off his interests within Russia in recent years. He retains a joint venture with Russian energy giant Gazprom in the Czech Republic.

The Gambling Commission said: “We are also satisfied that no application is impacted by sanctions related to the conflict in Ukraine.”

Bidders are understood to have been judged based on a “scorecard”, allowing the Gambling Commission to remove elements of subjectivity from the selection process.

Camelot is believed to have matched or outscored Allwyn across all of the parameters with the exception of financial projections – which includes forecast sales and money generated for good causes.

It had been thought that the Gambling Commission would apply a “risk factor” to the Allwyn projections, as they were significantly higher than Camelot’s. However, it is unclear if a risk factor was applied.

Other losing applicants included Italian operator Sisal, recently sold to FTSE 100 gambling giant Flutter, and New Lottery Company.

Andrew Rhodes, Gambling Commission chief executive, said: “In its lifetime, the National Lottery has raised more than £45bn for good causes and is rightly seen as a great national asset.

“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.

“We look forward to working with all parties to ensure a smooth handover.”

John Tanner, Gambling Commission executive director and senior responsible owner for the competition, said: “The Commission is grateful to all four applicants for their engagement in the competition. We were impressed by the overall standard of applications, including the range and quality of innovation proposed, and the high level of confidence and ambition demonstrated for the prospects of the National Lottery under the fourth licence.”