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<p>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.</p><p>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.</p><p>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.</p><p>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 <a href="https://www.gov.uk/government/publications/united-kingdom-security-vetting-clearance-levels/national-security-vetting-clearance-levels"
target="_blank">website</a>.</p>
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