Camelot to launch legal challenge against UKGC over Allwyn’s National Lottery victory

Camelot has launched a legal challenge against the UK Gambling Commission (UKGC) over the awarding of the fourth National Lottery licence to Allwyn.

Incumbent licence holder Camelot lost out to Allwyn after the UKGC selected the challenger to run the competition from 2024.

Camelot has held the licence since the National Lottery’s inception in 1994.

Following the announcement of Allwyn as the preferred applicant on 15 March, a legal standstill period began which allowed all applicants to consider the outcome and feedback on applications.

Following this period of reflection, Camelot has now began issuing proceedings in the High Court against the UKGC.

Nigel Railton, Camelot CEO, said: “We are launching a legal challenge today in our capacity as an applicant for the fourth licence because we firmly believe that the Gambling Commission has got this decision badly wrong. When we received the result, we were shocked by aspects of the decision.

“Despite lengthy correspondence, the Commission has failed to provide a satisfactory response. We are therefore left with no choice but to ask the court to establish what happened,” he added.

Railton went on to argue that due to the size and stature of the National Lottery, the licence awarding process required “independent scrutiny”.

He continued: “Irrespective of Camelot’s dual roles as current operator and applicant for the next National Lottery licence, the competition is one of the largest UK government-sponsored procurements and the process deserves independent scrutiny.

“Separately, more than 1,000 Camelot employees work tirelessly to successfully operate The National Lottery under the current licence and, at the very least, they are owed a proper explanation,” he concluded.

Earlier this month, The Telegraph reported a legal challenge could be launched over a change in the rules following a scoring round which originally saw Camelot finish in first spot.

A risk factor discount of up to 15% had been applied to financial projections by the bidders, including the potential returns to good causes.

Camelot is expected to claim that a discount was originally applied but later revoked during the final decision-making process.

Responding to Camelot’s decision to launch legal proceedings, a UKGC spokesperson said the body was “confident” it had run a fair competition and that it regretted Camelot’s decision to launch a legal challenge.

The spokesperson said: “The Commission has received legal proceedings in relation to the competition process.  We regret Camelot’s decision to bring legal proceedings following the outcome of a highly successful competition for the fourth National Lottery licence.

“The competition and our evaluation have been carried out fairly and lawfully in accordance with our statutory duties, and we are confident that a court would come to that conclusion.

“We are confident that we have run a fair and robust competition. We have taken every step possible to ensure a level-playing field for all interested parties, to enable us to appoint a licensee who will engage and protect players, run the National Lottery with integrity, and ensure the National Lottery continues to support good causes and their contribution to society,” the spokesperson added.

The UKGC said it would continue to work on the transition process into the next licence and noted it hoped Camelot would continue to cooperate with those proceedings.

The spokesperson added: “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.

“These proceedings will not help that but we trust that Camelot will honour its obligations as the current licensee to cooperate in that transition, and we will continue to use the tools available to us to facilitate that process.”

An Allwyn spokesperson told EGR: “It has been confirmed to us by the Gambling Commission and by Camelot’s lawyers that Camelot is contesting the outcome. We are an interested party in this matter. We can make no further comment.”