International Game Technology PLC (IGT) has filed a legal action against the U.K. Gambling Commission (UKGC) challenging the award of the contract for operation of the U.K. National Lottery to Allwyn Entertainment.
IGT filed the action in the European Court of Human Rights (ECHR), seeking compensation for the UKGC’s award of the 10-year contract that unseated Camelot Lottery Systems Group, which had operated the lottery since 1993. IGT, which was Camelot’s technology partner, is claiming £600 million in damages for the loss of what it describes as “marketable goodwill” as supplier of retail lottery ticket machines.
The action revives a challenge that Camelot itself dropped, an action that challenged the awarding of the contract to Allwyn. IGT was a co-plaintiff in that action, which Camelot dropped when it was clear that the lottery could suspend operations until the lawsuit was decided.
Allwyn subsequently announced the acquisition of Camelot U.K. from parent Ontario Teachers Pension Plan. The company is set to take over as manager of the lottery on January 1, 2024.
IGT’s action was quickly criticized in the U.K. Parliament, based on the fact that any damages would come from the U.K.’s designated Goud Causes fund, which uses lottery revenues to fund charitable causes. “The fact that charity money raised by the British public for local causes and projects is at risk of being raided by a partner of Camelot using the ECHR is completely unacceptable,” MPs Ben Bradley and Sally-Ann Hart told the Times of London.
