Communications between a subpostmaster, Camelot and the Post Office seen by Better Retailing reveal that a shop owner was accused of fraud by Camelot and had their lottery terminal removed.

Despite calls to provide evidence of the alleged incidents by the shop owner, Camelot repeatedly did not comply.

The lottery operator alleged the shop owner processed a “suspicious” number of winning transactions under his own name.

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However, because some subpostmasters, such as the one in this case, had not signed the standard retailer agreements with Camelot – the agreement was instead between the Post Office and Camelot – the documents show both major companies struggled to know what responsibilities the shop owner had towards Camelot.

Camelot also failed to complete an appeal within the required time frame. A decision was only made after pressure from the Post Office regarding “the risk of him going to the trade press” and the involvement of the Post Office’s chief executive making it “a priority case”.

Despite losing the appeal and having the terminal terminated, Better Retailing understands Camelot reinstated the terminal a year later. The retailer said they’d been treated “like a criminal” and had lost thousands of pounds in sales.

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A Camelot spokesperson told Better Retailing : “Camelot takes matters of propriety very seriously […] Although allegations against retailers are rare, we are committed to investigating them fairly and thoroughly.”

A Post Office spokesperson added: “If they choose to sell these products, they are required to follow Camelot’s guidance, including when it comes to paying out prizes and storing their materials.”

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