The UK Gaming Commission has initiated the official procedure of granting Allwyn Entertainment the UK National Lottery permit, after a High Court lifted a temporary halt that was implemented following a legal dispute by the Camelot Group.
Although Camelot expressed “disappointment” with the court’s ruling to allow the Gaming Commission to grant the lottery permit to Allwyn, the legal challenge itself concerning whether the commission lawfully awarded the permit to Allwyn will proceed.
The High Court decided on Wednesday that the temporary halt put in place in April should be lifted, allowing the commission to sign an authorization agreement with Allwyn before the permit term commences in February 2024.
Camelot, which has managed the lottery since its inception in 1994, filed a legal action after the commission declared in March that Allwyn was the favored applicant for the fourth National Lottery permit, resulting in the temporary halt being implemented.
While the temporary halt has been lifted, the High Court has not yet ruled on Camelot’s legal challenge to the commission’s selection process and the decision on the favored applicant.
A Camelot representative provided a statement in response to the decision, stating: “Although we are disheartened by the ruling, it solely addresses the question of whether an authorization arrangement could be executed while our case is under review. The determination of whether the Commission appropriately and legally granted preferred applicant status will be addressed independently.
“We will take some time to evaluate our subsequent actions and remain assured that we possess a very compelling legal argument. Meanwhile, we will continue to prioritize maximizing returns and building upon the exceptional performance of the past two years.”
The core of Camelot’s challenge centers around the scoring methodology and risk factors employed to evaluate the contenders for the fourth lottery license.
Camelot initially achieved the highest score in a system where all proposals were assessed using scorecards aligned with the planned scoring framework. This system incorporated a “risk discount” designed to modify scores to account for the possibility that operators might not meet their targets for charitable causes. The influence of the “risk discount” was subsequently diminished, the bids were reassessed, and Allwyn emerged as the frontrunner.
In light of today’s ruling, the Commission issued a statement: “We will now also prepare for the trial of the various claims. We remain confident that we have conducted a fair and rigorous competition and that our evaluation was conducted impartially and legally in accordance with our statutory responsibilities.”
Weve taken every measure to ensure a fair playing ground for everyone involved, allowing us to choose a licensee who will attract and safeguard players, run the National Lottery with honesty, and make sure the National Lottery maximizes its support for worthy causes and its contribution to society through further innovation and investment.”
Allwyn UK declared in a statement today: “Today’s decision is a positive sign for the National Lottery; it allows the Commission to proceed with granting the fourth National Lottery license to Allwyn.
“Judge O’Farrell made it clear that the public’s well-being, especially the impact on good causes, was a major factor in her judgment. Her decision paves the way for the transfer of Allwyn, the victor of the fourth license competition, to become the operator of the National Lottery starting February 2024; launching a plan of change that will bring an improved game selection, new technology, safer play rules, and a substantial increase in returns to good causes.”
Earlier this week, the lottery company reported a decrease in lottery sales for 2021-22 as the National Lottery was affected by a post-pandemic decline in retail foot traffic and the rising cost of living.
The lottery company stated that sales reached £80.9 billion, a 2.5% drop from £83 billion the previous year. However, 2021-22 marked the second year in which sales surpassed £80 billion.
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