The Post Office (PO) is ending its relationship with the National Lottery next year when Allwyn takes over as operator.

In a letter sent to stores today from group chief commercial officer, Owen Woodley, and seen by Better Retailing, the PO revealed that it will be ending its current contract with the lottery on 31 January 2024.

“You might be aware that from February 2024, there will be a new licensee running the lottery as Allwyn Entertainment will replace Camelot,” it said. “This change gave us the opportunity to review our relationship with the lottery provider and consider if there is a simpler way for branches to provide lottery services.

“Having undertaken an extensive review, including taking into account feedback from postmasters that you’d prefer to work directly with the national lottery, we have made the decision to stop being directly involved when our current contract ends.”

The PO went on to explain how the move will remove processing costs, and give stores the opportunity to receive “all the sales commission”.

However, Better Retailing understands postmasters will be expected to strike up their own relationship with Allwyn. In response, a spokesperson for the firm said: “Allwyn will enable retailers who currently sit under the PO brand the opportunity to work directly with the National Lottery from February 2024 – the beginning of the fourth National Lottery licence. This is a positive step that puts retailers back in control of their relationship with the National Lottery and underlines Allwyn’s commitment to supporting shops and growing the retail channel.”

“Currently, this network of retailers is only licensed to sell lottery tickets through their PO contract. Allwyn’s solution allows them to contract directly with Allwyn and benefit from our increased field support, incentive schemes and new technology.”

A spokesperson for PO added: “Our current contract and current license with Camelot to sell National Lottery tickets and scratch cards ends on 31 January 2024. We have made the decision to stop being directly involved when it comes to National Lottery services. From 31 January 2024 the sale of National Lottery services will be a direct arrangement between our franchisees and Allwyn.

“We know that for those POs that sell National Lottery tickets and scratch cards it is an important footfall driver. We are working closely with Allwyn so that there is a smooth transition process and we will provide postmasters that sell National Lottery services with regular updates. In the meantime, it is business as usual for postmasters selling National Lottery tickets and scratch cards.”

A spokesperson for Camelot stressed: “Nothing will change for these retailers in the short term, and there will be no changes to how they sell National Lottery products or to how players claim their prizes over the remainder of the current licence period. We are working closely with the PO and Allwyn on next steps, and will share any further information as soon as we can. We also understand that Allwyn will be engaging proactively with retailers in due course about its plans for the next licence.”

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