Camelot continues National Lottery battle after loss of licence to rival

Maria Debrincat 1 year ago

According to the Gambling Commission, Camelot’s damages claims might divert £600 million from charitable endeavors.

Despite losing its legal battle to keep its license to run the national lottery, Camelot will continue with a damages claim that could cost the government £600 million.

Camelot, the managing trustee of the National Lottery since its foundation in 1994, rejects the UK Gambling Commission’s (UKGC) decision to give Allwyn UK its new 10-year operational license as the contest’s “preferred applicant.”

*Gambling Commission Interim Chief Executive Andrew Rhodes.*

The damages are being brought forward after the High Court ruled in favor of the gambling regulator following legal action taken by Sir Nigel Railton, the chief executive of Camelot, who claimed the organization had not adequately addressed concerns about how and why the National Lottery license was granted to Czech company Allwyn back in March.

Camelot and its technology partner IGT will continue to make the legal case that the commission erred in making its decision. Should they prevail, they are anticipated to seek damages of £400 million and £200 million, respectively, in a case that will likely be heard later this year. The amounts greatly surpass the budget of the commission, and Camelot has claimed in court that any reimbursement would have to come from the lottery’s budget for charitable purposes.

During a parliamentary committee hearing, Executive Andrew Rhodes indicated that it was not apparent at this point in time where the money for process damages would come from. He claimed that the choice of how to pay for any future damages would eventually be made by Culture Secretary Nadine Dorries. Rhodes acknowledged that it might originate from “somewhere else,” but he quickly clarified that the significance of just causes and the overall “public interest” played a crucial role in the decision made.

The regulator concluded by saying: “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.”

Allwyn, has promised to invest in new digital products while halving ticket prices to £1.

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