Camelot withdraws legal challenge over fourth National Lottery licence

Camelot has withdrawn its legal challenge against UK Gambling Commission (UKGC) in the latest twist in the ongoing drama of the award of the fourth National Lottery licence.

The withdrawal of the claim now paves the way for Allwyn to transition to become the licence holder, having initially been named as the preferred applicant in March 2022.

Camelot and its technology partner, IGT, launched a series of legal challenges against Allwyn and the UKGC over the decision.

These challenges resulted in the transition period being suspended. In June, the High Court lifted the suspension despite the ongoing appeal from Camelot and IGT.

Camelot and IGT then decided to continue the legal battle despite the High Court’s decision, leading to the suspension on the transition continuing.

Now, Camelot, which has operated the National Lottery since 1994 and is owned by the Ontario Teachers’ Pension Plan, has withdrawn its appeal which, in theory, will allow Allwyn’s ascension to become the fourth licence holder to proceed.

Allwyn, which is gearing up to float in New York via a SPAC deal, has previously pledged to cut ticket prices from £2 to £1 and has projected £38bn will be allocated for good causes during the 10-year licence.

The tender process for the latest licence included New Lottery Company, Sisal as well as Camelot and Allwyn.

Allwyn, previously known as Sazka Group, said: “Allwyn very much welcomes this decision and looks forward to cooperating with Camelot and the Gambling Commission on the transition process. Allwyn is excited at the prospect of becoming the custodian of Europe’s biggest lottery.”

However, the UKGC noted that while Camelot had withdrawn its appeal, IGT had yet to communicate whether its position had changed.

The UKGC said this would result in the suspension remaining in place until IGT had provided the regulator with further clarity.

The UKGC said: “Resolution of the appeal would allow us to proceed with the important work of formally awarding the licence to Allwyn.

“Our priority is to continue to work to implement our decision and ensure a seamless and timely transition to the next licence, for the benefit of participants and good causes.

“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.”

Camelot said that the potential impact on good causes relating to the ongoing legal challenge led the firm to withdrawing its appeal.

A Camelot spokesperson said: “By pursuing the opportunity to be awarded the fourth licence, Camelot has sought to limit the risk that good causes or the Exchequer would have to meet damages if the licence award was found by a Court to have been unlawful.

“However, it has become clear that the potential damages covered by the undertakings needed for the appeal to proceed would have been too large, and involved too great a commercial risk, for it to be reasonable to provide them.

“For that reason, Camelot has decided to withdraw its appeal in relation to the lifting of the suspension and Allwyn has agreed not to pursue any damages against Camelot in relation to the undertakings given in July. Camelot is no longer seeking to prevent the Enabling Agreement being signed prior to the Procurement Trial which will now take place in January/February.

“In accordance with its duties as the operator of the third Lottery licence, Camelot will now cooperate with Allwyn and the Gambling Commission to facilitate an orderly transition to the fourth licence.”