Camelot Group, which has operated the U.K. National Lottery since its inception nearly 30 years ago, has been passed over to operate it for another 10 years. Instead, the U.K. Gambling Commission (UKGC) chose a new operator, Allwyn Entertainment for the 4th license to operate the lottery.
Camelot’s contract will run out in February 2024.
Allwyn is a multinational operator of lotteries with offices in the Czech Republic, Switzerland and the U.K.
The decision has been challenged in court, but already Camelot has lost one round. The High Court of England and Wales ruled that the UKGC could go ahead and sign a contract with Allwyn despite the fact that a court case challenging the way the decision was made is still pending.
Camelot accuses the UKGC of changing the rules and conditions to favor Allwyn’s bid.
Meanwhile, the judge has set an October court date. Camelot is seeking £500 million ($600,802,500) in damages for what it argues was a mistaken decision. After the High Court ruling, Camelot issued a statement reiterating its confidence in its case moving forward.
The statement said, “The judgement on whether the Gambling Commission correctly and lawfully awarded Preferred Applicant status is being dealt with separately. We will take some time to consider our next steps and continue to believe that we have a very strong legal case.”
It added, “In the meantime, we remain dedicated to maximizing returns to Good Causes, building on our record performance over the past two years.”
The UKGC issued its own statement: “We made clear that disrupting the implementation of Allwyn’s plans would present potentially severe consequences for the National Lottery and good causes. It also risked the National Lottery not operating to its full potential at the start of the fourth license.”
Regarding the allegation that it rigged the selection in favor of Allwyn, the commission stated: “We remain resolute that we have run a fair and robust competition, and that our evaluation has been carried out fairly and lawfully in accordance with our statutory duties.”
Attorneys for the UKGC had told the judge that if it wasn’t allowed to sign a contract, the entire National Lottery draw would be jeopardized by a possible suspension. It added that Allwyn required a minimum of two years to take on its new role.
The statement continued, “We have taken every step possible to ensure a level playing field for all interested parties, to enable us to appoint a licensee who will engage and protect players, run the National Lottery with integrity and ensure the National Lottery maximizes support for good causes and its contribution to society through further innovation and investment.”
The 10-year license to operate the National Lottery is estimated to generate up to £100 billion in ticket sales. Allwyn promised a substantial increase in the amount it would raise for charity.
