The Appellate Court has ruled to permit the lottery operator, Camelot Group, and International Game Technology (IGT) to contest the decision to award the fourth UK National Lottery franchise to Allwyn Entertainment.
The UK Gambling Commission declared in March that Allwyn was their preferred candidate, implying that Camelot would no longer oversee the UK Lottery after a span of 28 years.
Camelot, which has been managing the lottery since its inception in 1994, was designated as the backup option and would continue to operate it if the Gambling Commission was unable to finalize an agreement with Allwyn.
In April, Camelot initiated legal proceedings, asserting that the Commission had not adhered to the stipulated guidelines when granting the license to Allwyn. This action resulted in a temporary suspension of the official transfer of the lottery license to Allwyn.
The court lifted the suspension in June, but the legal battle persisted, with Camelot and IGT also challenging the decision and requesting a higher court to re-examine it.
The higher court has now consented to hear their case, which signifies that the suspension will be reinstated until they reach a verdict.
The appeal hearing is likely to take place in the week commencing 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 indicated that there is a possibility that the National Lottery might not achieve its full potential when the fourth license commences.
The Commission is disheartened by the court’s ruling but acknowledges it. The appeal process will pose a challenge for the transition of the fourth license and will further postpone the granting of the license to Allwyn.
The Commission expresses regret over the legal action initiated by external parties following the outcome of the competition for the fourth National Lottery license, which could impact the transition of the fourth license and ultimately affect funding for charitable causes.
Despite this, the Commission remains dedicated to ensuring a seamless transition between the third and fourth National Lottery licenses. This will enable players to continue participating in the National Lottery fairly and securely, claim prizes, and guarantee that the National Lottery continues to support charitable causes throughout the UK.
Allwyn was selected after 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, stated that the ruling might diminish the lottery’s capacity to distribute funds to charitable organizations.
He thus encouraged lottery operators Camelot and IGT to incorporate charitable causes into their damage agreement, pledging to reimburse impacted parties for losses incurred due to the court order if Allwyn ultimately prevails in the legal battle and the injunction is deemed inappropriate.
“We are disheartened by today’s verdict,” he stated. “It heightens the probability of further postponements, as the appeal will occur in September. It is widely recognized that such postponements will harm the implementation of the public benefit advantages that the fourth license will bring.
“As the court determined, Camelot and IGT must provide a damage agreement by 4pm on Friday. We urge them to either guarantee that the agreement encompasses charitable causes, or to gracefully accept Judge O’Farrell’s decision for the benefit of charitable causes and the National Lottery.
“This will lift the suspension and enable the Gambling Commission to proceed with granting the fourth license to Allwyn.”
Camelot declined to provide a statement regarding whether they would comply.
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