Camelot withdraws legal challenge against Allwyn in lottery process

Home » Camelot withdraws legal challenge against Allwyn in lottery process

Camelot has dropped its legal challenge against Allwyn, after the former was chosen by the Gambling Commission to take over the UK National Lottery Licence.
When The Gambling Commission awarded Allwyn the Fourth National Lottery Licence in March, the incumbent Camelot immediately appealed the decision and pursued legal action against Allwyn and the Gambling Commission, which could have cost the UK Government £600m ($693m) in damages if successful.
However, Allwyn has now claimed that Camelot has dropped its legal challenge, and Allwyn has agreed to waive any costs incurred by Camelot during the legal process by dropping its counterclaim.

Allwyn is now expected to begin the transition process to take over the National Lottery from Camelot, which has lost the rights it has held since the National Lottery’s inception in 1994.

The licence, which is worth £6.4 billion over ten years, has previously been the subject of a legal proceeding. Camelot was defeated in the bidding process to operate the UK National Lottery in 2012, when Virgin was named the preferred bidder for the third National Licence. However, Camelot’s legal action caused Virgin to withdraw from the race, with Camelot retaining the rights in the subsequent selection process.

However, Allwyn stood firm on this occasion, forcing Camelot to withdraw its case in the legal dispute, as Camelot realized Allwyn was unlikely to follow Virgin and back down.

The original procedure was detailed in the May issue of Gambling Insider, which can be found here.