Lottery operator ran the game since its inception 28 years ago

Camelot has lost its licence to run the National Lottery with the new bidder pledging to give far more cash to good causes.

The company, which has run the National Lottery since it was launched 28 years ago, will be replaced by Allwyn Entertainment Ltd as the preferred applicant for the lottery's next licence, which starts in 2024.

One of the world's largest lotteries, the National Lottery has raised more than £45bn for 660,000 causes across the UK.

As part of its bid Allwyn pledged to donate £38bn to good causes over the next decade, almost equivalent to the £45bn Camelot raised since it began running the national lottery in 1994.

Allwyn is a UK-based subsidiary of Europe's largest lottery operator Sazka, which is owned by Czech oil and gas tycoon Karel Komarek.

It signalled its intent to run the National Lottery by launching in early 2021. Its board includes former members of the London 2012 Olympics organising committee, Lord Coe and entrepreneur Sir Keith Mills, who sit on its advisory board.

“Our priority was to run a competition that would attract a strong field of candidates,” said the Gambling Commission chief executive, Andrew Rhodes. “Having received the most applications since 1994, it is clear we’ve achieved just that. We look forward to working with all parties to ensure a smooth handover.”

Sainsbury’s chief executive Justin King will now take over as chairman of the Allwyn UK business.

He said: “I’m delighted that Allwyn’s proposal has been deemed the strongest to grow good causes in the safest and most sustainable way possible.

“The Gambling Commission has run a lengthy and detailed process, and I’ve been extremely impressed by the attention they have paid to the challenges facing the national lottery over the coming decades.

“The national lottery is a vital British institution and we’re focused on ensuring it plays an even bigger part in society by increasing participation, improving safeguards, and giving back more to good causes.”