There were some weaknesses in some of the specific controls relevant to this incident and we’re very sorry for thatAndy Duncan, Camelot chief executive Shadow culture secretary Tom Watson called for an urgent statement by the Government.He said: “Thousands of organisations rely on money from the National Lottery and the millions of people who play it are right to expect that the rules of the game are fair.”Camelot has very serious questions to answer.”So too do ministers. Karen Bradley was asked only yesterday in Parliament about security breaches at the National Lottery and she failed to offer assurance that the Government is taking steps to improve it.”The commission ruled that Camelot breached the terms of its operating licence over control of its databases, the way it investigated prize claims and its processes “around the decision to pay a prize”.A Department for Culture, Media and Sport spokesman said: “The integrity of the National Lottery is absolutely paramount and it is crucial that both players and returns to good causes are protected and not at risk from fraudulent activity.”It is right that the Gambling Commission has acted in this case and assured us that Camelot has put controls in place to mitigate against any similar licence breach in the future.” The commission said Camelot had already taken steps to ensure that a similar problem would not happen again.The watchdog’s chief executive, Sarah Harrison, said: “The Gambling Commission’s chief concern is to ensure the National Lottery is run with integrity and that player interests are protected.”Camelot’s failures in this case are serious and the penalty package reflects this. Importantly, the package also ensures that good causes will not lose out as a result of Camelot’s licence breach.”Lottery players can feel reassured that our investigations have found no evidence of similar events happening and that controls are in place today to mitigate against future prize payout failings of this type.”Camelot said police had decided earlier this year to take no further action over the alleged fraud.Mr Duncan said: “It’s really important that people understand that this allegation relates to a unique, one-off incident dating back to 2009 and involves a potentially fraudulent claim on a deliberately damaged ticket. It has nothing to do with the National Lottery draws themselves.”We’ve strengthened our processes significantly since 2009 and are completely confident that an incident of this nature could not happen today. We welcome the Gambling Commission’s confirmation that this is the case.” Camelot chief executive Andy Duncan apologised, saying: “We accept that, at the time, there were some weaknesses in some of the specific controls relevant to this incident and we’re very sorry for that.”Hertfordshire Police said: “An allegation of fraud connected to a lottery win from 2009 was investigated by Hertfordshire Constabulary’s specialist Cyber and Financial Investigation Unit working with the Gambling Commission.”As part of the investigation a man was arrested on suspicion of fraud by false representation. Following a thorough investigation the man was released with no further action to be taken against him.”In 2012 convicted rapist Edward Putman, 51, also from Kings Langley, was in court for fraud for falsely claiming £13,000 in benefits on top of his £5 million win. Convicted rapist Edward Putman, who won £4.9 million on the National Lottery arrives at St Albans Crown Court, before being sentenced to nine months in prison for benefit fraudCredit:Kerry Davies/INS NEWS LTD National Lottery operator Camelot has been fined £3 million by the gambling watchdog after paying out a £2.5 million prize claim involving a deliberately damaged ticket.The penalty was handed down by the Gambling Commission over a 2009 incident that went undiscovered for six years until 2015, when the regulator and police were alerted.A 51-year-old man, from Kings Langley, had claimed the £2.5 million jackpot using a damaged ticket.He was arrested for fraud last October and has been released without charge, Hertfordshire Police say they will reopen the case if new evidence comes to light.The man has not repaid any of the money to Camelot and the firm says it is still “considering its options”.Camelot said it was unable to confirm the details of what had occurred but added that many of the people involved in the case in 2009 were no longer with the company. Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily Front Page newsletter and new audio briefings.