The British Court of Appeal has granted permission for Camelot Group, the lottery administrator, and International Game Technology (IGT) to appeal a ruling that awarded the fourth National Lottery license to Allwyn Entertainment.
The decision to grant the fourth license to Allwyn, which would mark the end of Camelot’s 28-year tenure as the UK’s lottery operator, was made by the UK Gambling Commission in March.
Camelot, which has overseen the lottery since its inception in 1994, was chosen as the backup applicant and would continue to manage operations if the Gambling Commission couldn’t finalize an agreement with Allwyn.
In April, Camelot initiated legal action in the High Court, questioning the legality of the Gambling Commission’s decision to award the license to Allwyn. This resulted in a temporary suspension of the official transfer of the lottery license to Allwyn.
In June, the High Court lifted the suspension order, but the legal challenge persisted, with Camelot and IGT also contesting the decision and appealing to the Court of Appeal.
The Court of Appeal has now granted the appeal, leading to an automatic reinstatement of the suspension until the appeal process is concluded.
The appeal hearing is likely to occur the week of September 12th.
The UK Gambling Commission stated that hindering Allwyn’s plans could have severe repercussions for the National Lottery and charitable organizations. They also mentioned that there’s a possibility the National Lottery may not be able to fully realize its potential at the commencement of the fourth license.
They are disheartened by the court’s ruling but acknowledge its validity. The appeal process will present a challenge for the shift to the fourth license and will further postpone the granting of the license to Allwyn.
They lament the legal action initiated by external parties subsequent to the conclusion of the fourth National Lottery license competition, which could impact the transition to the fourth license and ultimately influence funding for worthy causes.
Despite this, their primary objective remains to ensure a seamless transition between the third and fourth National Lottery licenses, so that participants can continue to enjoy playing the National Lottery fairly and securely, and claim their winnings, and the National Lottery continues to provide financial support for beneficial causes throughout the UK.
Allwyn was selected following a competitive bidding process that also included a new lottery company owned by health lottery operator Northern and Shell, as well as Sisal from Italy, and Camelot.
The Allwyn leader, Justin King, expressed concern that the recent decision might negatively affect the lottery’s capacity to distribute funds to worthy causes.
He strongly encouraged the lottery operators, Camelot and IGT, to incorporate charitable organizations into their pledges for damage compensation. He committed to reimbursing affected parties for losses incurred due to the legal order, should Allwyn ultimately prevail in the legal battle and the injunction be deemed inappropriate.
“We are disheartened by today’s verdict,” he stated. “It has the potential to result in further postponements, as the appeal is scheduled for September. It is widely recognized that such delays will detrimentally impact the public benefits associated with the fourth lottery license.
“As the court has determined, Camelot and IGT are obligated to provide pledges for damage compensation by 4 pm on Friday. We strongly urge them to either ensure that the pledges encompass charities or gracefully accept Judge O’Farrell’s ruling for the benefit of charities and the National Lottery.
“This action would enable the suspension to be lifted, permitting the Gambling Commission to proceed with granting the fourth lottery license to Allwyn.”
Camelot declined to provide a statement regarding their intentions in this matter.
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