The review is undertaken under section 116 of the Gambling Act, which states the Commission may carry out such an investigation if it has reason to believe an operator is breaking conditions of its licence.
“The review follows concerns that activities may have been carried out contrary to the Gambling Act, not in accordance with a condition of their licence and that the licensee may be unsuitable to carry on the licensed activities,” the regulator explained.
Capen – which operates The Little Lottery, The Sports Lotto and Zaffo, as well as the defunct Lottery For Kids – received its operating licence in 2014 and obtained a software licence in 2017.
It was founded by Simon Rydings, who serves as its chief executive, and it specialises in raffle-type draws with smaller prizes. According to the marketing messaging for The Little Lottery, 23% of funds from this brand go to good causes.
The Commission has suspended a number of other licences this year, including igaming operator Stakers, as well as betting exchange Matchbook, online gaming operator Genesis Global and lottery betting operator Multi-Media Entertainment Ltd.