Camelot fined £90,000 over online lottery problems

Saturday, March 18, 2006 posted 05:22 AM EST

UK national lottery company Camelot has been fined £90,000 following problems with the launch of its online system in 2004.

Camelot's online subscription service, introduced in September and October 2004, allowed lottery players to pay online with a debit card or set up a direct debit to be automatically entered for the Lotto or Thunderball draws for a set period of time.

But problems with the initial launch resulted in incorrect charging and crediting of some players accounts and disruption to draw entries, including failed and duplicate entries.

The "teething problems" with the software, as Camelot referred to them, were resolved by the company within a couple of months of the launch of the online service.

An investigation by the National Lottery Commission (NLC), however, found Camelot failed to operate an adequate system of internal control in the implementation and initial operation of the subscriptions system and failed to report the problems to the NLC immediately.

The NLC fined Camelot £90,000 for breaches of its licence obligations but said it is confident that all affected players have been identified and compensated accordingly and that funds for good causes were not adversely affected.

Annette Lovell, deputy CEO of the NLC, said in a statement: "We are satisfied that the issues which arose in September and October 2004 have now been dealt with but we will continue to monitor the operation of the subscriptions service."

Camelot said in a statement: "The issue affected a small number of players, and prompt action was taken to ensure that players suffered no financial loss. This is a historical issue which occurred in 2004 - and Camelot has since gone on to develop the most successful interactive lottery in the world."

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