Court of Appeal ruling makes UK National Lottery future uncertain

Another court ruling and another spanner were thrown in the works of the UK National Lottery as the incumbent, Camelot, has made it clear that it will seek to retain its license. The Court of Appealhas issued a reverse order on the UK Gambling Commission’s enabling agreement which would have seen the transfer of license from the existing operators to the newly-elected one continue as normal.

However, this decision will now make it harder for Allwyn UK, the winner of the fourth lottery tender according to the UKGC, to begin the transitioning process. The original decision on the enabling agreement was reached in the High Court of England late last month, but this has now been overturned. Allwyn is set to step in as the official National Lottery operator come January 1, 2024, but these prospects are being challenged.

Both IGT, the current lottery technological partner, and Camelot have objected to the manner in which the fourth tendering process was carried out. They are pursuing a lawsuit against the UK Gambling Commission and insisting that their bid had the most merit. An automatic suspension will now be in place until the court battle is renewed in mid-September.

The Gambling Commission has criticized the ruling and argued that disrupting Allwyn’s transition to the National Lottery would have significant consequences on good causes, one of the biggest benefactors of money generated through the lottery.

Further challenges in the coming months could pertain to the operational capacity of the lottery. According to the regulator, the lottery may not be running at full speed on January 1, 2024, because of the issues that are mounting now.

The UKGC added that it will honor the court’s opinion and await further deliberations to prove its case. The commission has rebutted statements by Camelot and IGT that it had conducted its tendering process unfairly and lacking clear terms.

Allwyn UK chairman Justin King said that the company was disappointed by the Court of Appeal decision, and said that it created the possibility of further delays that are not productive and could indeed damage good causes and initiatives. King insisted that IGT and Camelot present a strong case in September or withdraw their objections so the transference of license can proceed.

The National Lottery saga is set to continue for at least another several months best case scenario. This comes in a fraught context for the British gambling industry. A proposed re-regulation of the Gambling Act 2005 has been stayed due to Boris Johnson, the now-former British prime minister, stepping down from office and Minister of GamblingChris Philp doing the same.

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