The UK Gambling Commission (UKGC) has fined National Lottery operator Camelot £3m after it was found to have been duped by a fraudulent prize claim in 2009, for which it paid out winnings of £2.5m.

The operator had received a prize claim made using a deliberately damaged ticket. Despite the claim being made seven years ago, it was only identified last year as a "most likely" fraudulent case, with Camelot immediately informing the UKGC and police.

The UKGC announced in a statement Friday that by paying out the sum, Camelot had breached three key terms of its operating licence.

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