The UK Gaming Commission has formally granted Allwyn Entertainment the UK National Lottery permit, after a judicial order halting the procedure was lifted following a legal challenge by the Camelot Group.
Camelot expressed “disappointment” with the court’s ruling, but its legal challenge to the Gaming Commission’s decision to grant the permit to Allwyn will continue.
The court decided on Wednesday that the suspension order, which was implemented in April, should be lifted, signifying that the Gaming Commission can now sign an authorization agreement with Allwyn before its permit term commences in February 2024.
Camelot, which has managed the lottery since its inception in 1994, filed a lawsuit after the Gaming Commission declared in March that Allwyn was the favored applicant for the fourth National Lottery permit, resulting in the suspension order.
Even though the suspension order has been lifted, the High Court has not yet ruled on Camelot’s legal challenge concerning the Gaming Commission’s selection process and the decision on the favored applicant.
Camelot released a statement regarding the ruling, stating: ‘Though disheartening, this decision only addresses the validity of signing an authorization agreement during our legal proceedings. The determination of whether the Commission appropriately and lawfully granted the preferred applicant status will be addressed independently.
‘We will thoroughly analyze our subsequent actions and maintain our conviction in the strength of our legal stance. Meanwhile, we will remain dedicated to maximizing returns, contributing to worthy causes, and building upon the exceptional performance of the past two years.’
Camelot’s disagreement with the scoring system and risk factors stems from the evaluation of candidates for the fourth lottery license.
Initially, Camelot secured the highest score in a system where all contenders were assessed using scorecards based on a predetermined scoring system. This system incorporated a ‘risk discount’ to adjust scores, factoring in the possibility that the operator might not achieve its targets for charitable contributions. Subsequently, the impact of the ‘risk discount’ was reduced, and the bids were re-evaluated, placing Allwyn in the lead.
Following today’s decision, the Commission issued a statement: ‘We will now also prepare for the hearing of various claims. We remain confident that we have conducted a fair and rigorous competition, and that our evaluation was just and lawful in accordance with our statutory responsibilities.”
Weve done everything in our power to ensure everyone has a fair shot, so we can choose a capable operator who can draw in players, keep them safe, and manage the National Lottery with integrity. This will also help the National Lottery contribute more funds to worthy causes and make a positive impact on society through innovative ideas and investments.
Allwyn UK stated in a press release today: “This is positive news for the National Lottery. It means the Commission can finally award the fourth National Lottery license to Allwyn.
“The judge was clear that the public interest, particularly the effect on charitable causes, was paramount in her ruling. This decision enables Allwyn, the victor of the fourth license competition, to take over the National Lottery from February 2024. We’ll be introducing a comprehensive plan that includes enhanced games, cutting-edge technology, responsible gambling practices, and a significant increase in funding for charitable causes.”
Earlier this week, Camelot reported a decline in lottery sales during 2021-22. This was attributed to a decrease in foot traffic to stores following the pandemic and the rising cost of living.
Camelot stated that sales reached £8.09 billion, representing a 2.5% decrease from the £8.3 billion generated the previous year. Despite the decline, this marks the second consecutive year that sales have exceeded £8 billion.